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U.S. Treasury to Lift Sanctions on Companies Linked to Russian Oligarch Oleg Deripaska

The Treasury Department announced Wednesday that it will lift sanctions on three companies linked to Oleg Deripaska, the Russian billionaire who was punished for Russian interference in the 2016 election. According to The Financial Times, Treasury Secretary Steven Mnuchin said EN+, Rusal, and EuroSibEnergo were sanctioned due to their connections with Deripaska rather than the “conduct of the companies themselves.” In an agreement with the Treasury, the three companies reportedly said they would “reduce Deripaska’s ownership stake, overhaul their boards of directors,” and be fully transparent with the department. Since the companies plan to reduce Deripaska’s influence, the department said it had determined that sanctions were no longer necessary. “The companies will be subject to ongoing compliance and will face severe consequences if they fail to comply,” Mnuchin said in a statement.

The Times reports that Deripaska and the three groups were sanctioned in April, as part of the U.S. effort to “punish Moscow” for interfering in the 2016 presidential election. According to the newspaper, the agreement comes after “intensive negotiations” with OFAC and between the companies themselves. Deripaska and two of the companies’ chairmen reportedly wanted to find a deal that would “meet regulatory requirements and be palatable to the Russian oligarch.”