Russia's Rusal plunges on United States sanctions

Aluminium giant Rusal share price halved after US sanctions

The measures affect the seven oligarchs, 12 companies they own or control, as well as 17 senior Russian government officials. Any assets the seven have under United States jurisdiction have been frozen and U.S. nationals are forbidden from doing business with them.

The action targeted Russian oligarchs whose companies have wide-ranging involvement in global capital markets. The metal jumped in price on Monday after lawyers and traders said that many non-US customers would also be wary of buying from the company because of the wide reach of the sanctions. Shares in Rusal and EN+ had already fallen sharply on Friday in response to the sanctions, which were announced towards the end of trading in London.

The entrance to a Moscow business centre that houses the offices of the aluminium giant Rusal, one of the companies controlled by the Russian billionaire Oleg Deripaska.

The firm, which produces nearly 6% of the world's aluminium, said the sanctions could cause technical defaults on bank loans and some credit obligations.

The sanctions, the latest United States effort to punish Moscow for "malign activity around the globe", also affect 17 senior Russian government officials.

Rusal is the second-largest aluminum maker in the world, while the USA is the largest importer of aluminium.

En+, Oleg Deripaska's energy business which listed in London in November, plunged 42 per cent, compounding losses suffered on Friday.

The Kremlin on Monday slammed the latest round of sanctions.

In a sea of red for Russian stocks Evraz, the FTSE 100 mining group part-owned by Roman Abramovich, fell 14 per cent and Polymetal, the FTSE 250 miner, closed down 18 per cent.

En+ Group and Rusal both released statements on Monday that said "it is highly likely" that the sanctions would "be materially adverse" to their businesses.

The sanctions also hit Norilsk Nickel, whose shares were down 16 percent. "The situation is pretty egregious from the point of view of legality, it tramples on all kinds of norms, and so a thorough analysis is necessary", he said.

The US Treasury said the sanctions were linked to Russia's actions in Crimea, Syria and Ukraine and its interference in western democracies.

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