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Report: Deripaska considering lowering stake in EN+ to appease US sanctions

Russian billionaire Oleg Deripaska may seek to reduce his stake in En+ Group PLC, through which he controls aluminum producer United Co. Rusal PLC, with a view to easing U.S. sanctions against the companies, Reuters reported May 25, citing anonymous sources.

Deripaska is reportedly considering a plan, whereby EN+ would buy some of his shares in the company to appease U.S. sanctions. The tycoon has a 66% stake in En+.

Three anonymous sources told Reuters that this was one of the options being discussed with the U.S. Treasury Department's Office of Foreign Assets Control, OFAC.

The two companies were included on a U.S. sanctions list on April 6 for allegedly profiting from "malign activities" of the Russian government around the globe. The sanctions had a huge impact on Rusal, sending the company's share price plummeting to record lows and pushing up aluminum prices.

The U.S. government previously said it would consider lifting the sanctions, if Deripaska relinquished control of the company.

Deripaska has already taken steps to distance himself from the sanctioned companies, stepping down as nonexecutive director of Rusal and director at EN+. In addition, Rusal CEO Alexandra Bouriko and half of its board members resigned from Rusal on May 24, triggering an uptick in company shares on the Moscow and Hong Kong stock exchanges.

Russian Finance Minister Anton Siluanov told journalists at the St. Petersburg International Economic Forum that the step taken sent a "positive signal" and means that the sanctions will be lifted soon.

The Russian government previously pledged its support to the sanctioned companies and Deripaska has asked the state to start purchases of aluminum to support the company, according to a separate May 24 report by Reuters, citing an unnamed government source.