United Company RUSAL Plc: Inside Information Announcement

HONG KONG--()--Regulatory News:

United Company RUSAL Plc (Paris:RUSAL) (Paris:RUAL):

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

UNITED COMPANY RUSAL PLC
(Incorporated under the laws of Jersey with limited liability)
(Stock Code: 486)

INSIDE INFORMATION ANNOUNCEMENT

This announcement is made by the Company pursuant to Rules 13.09 and 13.51B(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

On 6 April 2018, the Office of Foreign Assets Control (“OFAC”) of the Department of the Treasury of the United States of America (“US Treasury”) designated, amongst others, certain persons and certain companies which are controlled or deemed to be controlled by some of these persons to be added to its Specially Designated Nationals List (the “OFAC Sanctions”). These include Mr. Oleg Deripaska, a non-executive director of the Company, the Company, En+ Group Plc, a Jersey company listed on the London Stock Exchange and the Moscow Stock Exchange and a shareholder holding 48.13% equity interest in the Company, B-Finance Ltd., a BVI company, and Basic Element Limited, a Jersey company, each controlled by Mr. Deripaska, together with certain other companies owned or controlled or deemed to be controlled by Mr. Deripaska.

The US Treasury’s press release of 6 April 2018 (the “US Treasury Release”) states that: “OFAC’s actions were carried out pursuant to authority provided under Executive Order (E.O.) 13661 and E.O. 13662, authorities codified by the Countering America’s Adversaries Through Sanctions Act (CAATSA), as well as E.O. 13582. These actions follow the Department of the Treasury’s issuance of the CAATSA Section 241 report in late January 2018.”

The US Treasury Release further states that: “All assets subject to U.S. jurisdiction of the designated individuals and entities, and of any other entities blocked by operation of law as a result of their ownership by a sanctioned party, are frozen, and U.S. persons are generally prohibited from dealings with them. Additionally, non-U.S. persons could face sanctions for knowingly facilitating significant transactions for or on behalf of the individuals or entities blocked today.”

The full text of the US Treasury Release can be read at
https://home.treasury.gov/news/press-releases/sm0338

In addition, OFAC issued two general licenses in connection with these designations authorising U.S. persons to engage in certain limited activities and transactions involving the Company or its subsidiaries (the “Group”). One of the licenses authorises, with certain limitations and exclusions, U.S. persons to engage in transactions and activities ordinarily incident and necessary to the maintenance or wind down of operations, contracts, or other agreements (including the importation of goods, services, or technology onto the US) involving the Group (“License 12”). The other license authorises, with certain limitations and exclusions, U.S. persons to engage in transactions and activities ordinarily incident and necessary to divest or transfer to a non-U.S. person, or to facilitate the transfer by a non-U.S. person to another non-U.S. person, of debt, equity, or other holdings in three entities, including the Company and EN+ Group Plc (“Licence 13”).

The Company assesses that the OFAC Sanctions may result in technical defaults in relation to certain credit obligations of the Group, and the Company is currently evaluating the impact (if any) of such technical defaults on the financial position of the Group. The Company is currently in compliance with its credit and financial obligations (including repayment obligations) in all other respects. The Company intends to continue to fulfill its existing commitments in accordance with applicable legal and regulatory requirements.

There may be a delay in the despatch of the Company’s annual report for the year ended 31 December 2017. A further announcement will be made as soon as possible in this regard.

Whilst further evaluation is being carried out by the Company to assess the impact of the OFAC Sanctions on the Group, the Company’s initial assessment is that it is highly likely that the impact may be materially adverse to the business and prospects of the Group.

The Company’s primary focus remains its business and, most importantly, all of its global customers, investors and partners. As a global business that engages with companies in different markets, the Company will continue to ensure it abides by all applicable laws and regulations.

The Company will make further announcement(s) as soon as possible following further evaluation of the situation. Shareholders and potential investors are advised to exercise extreme caution when dealing in the securities of the Company.

  By Order of the Board of Directors of
United Company RUSAL Plc
Aby Wong Po Ying
Company Secretary

9 April 2018

As at the date of this announcement, the executive Directors are Mr. Vladislav Soloviev and Mr. Siegfried Wolf, the non-executive Directors are Mr. Oleg Deripaska, Mr. Maxim Sokov, Mr. Dmitry Afanasiev, Mr. Ivan Glasenberg, Mr. Maksim Goldman, Ms. Gulzhan Moldazhanova, Mr. Daniel Lesin Wolfe, Ms. Olga Mashkovskaya, Ms. Ekaterina Nikitina and Mr. Marco Musetti, and the independent non-executive Directors are Mr. Matthias Warnig (Chairman), Mr. Philip Lader, Dr. Elsie Leung Oi-sie, Mr. Mark Garber, Mr. Dmitry Vasiliev and Mr. Bernard Zonneveld.

All announcements and press releases published by the Company are available on its website under the links http://www.rusal.ru/en/investors/hkse/, http://rusal.ru/investors/info/moex/ and http://www.rusal.ru/en/press-center/press-releases.aspx, respectively.

Contacts

United Company RUSAL Plc

Contacts

United Company RUSAL Plc