Glencore CEO Ivan Glasenberg has resigned as director of Russian aluminium gaint Rusal.
Photo by: Creamer Media
JOHANNESBURG (miningweekly.com) – Multinational miner and commodity trader Glencore will not proceed with a share swapping transaction with Russian companies Rusal and EN+ Group, following fresh US sanctions targeting Kremlin-linked companies and oligarchs.
Glencore, which on Tuesday confirmed that it would comply with all applicable sanctions, said that the previously announced transaction in which it would have swapped its 8.75% stake in Oleg Deripaska’s aluminium-producing giant Rusal for global depositary receipts in one of his other companies, EN+ Group, would not go ahead.
Glencore also announced that its CEO, Ivan Glasenberg, had resigned as a director from the board of Rusal.
The Swiss commodities giant, which has various contracts with Rusal for the purchase of aluminium and alumina, said in a statement that it was considering its position under the contracts.
The contracts were not financially material to Glencore, the news release added.
Shares in Glencore fell on the LSE late on Friday as investors reacted to the news out of the US that Deripasaka and eight of his companies were placed under new sanctions. The slide continued on Monday, with Glencore trading about 4% lower on the London bourse to close at £339.15.
The stock recovered somewhat on Tuesday, trading 1.8% higher at £345.45 a share.