Fidelity bank banner Bayelsa State banner
Sanctions on Russian tycoon may affect Nigeria, other countries

By News Express on 07/04/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 998

•Sanctioned Russian magnate Oleg Deripaska
•Sanctioned Russian magnate Oleg Deripaska

The U.S. government’s decision to include Russian magnate Oleg Deripaska on its sanctions blacklist on Friday will reverberate around the world, affecting the economies of several countries – including Nigeria. This is because Deripaska’s business empire, which extends to Nigeria, has a global footprint and counts major multinationals as partners.

 

Washington imposed sanctions on seven Russian oligarchs, 12 companies they own or control, as well as 17 senior Russian government officials because, it said, they were profiting from a Russian state engaged in “malign activities” around the world. 

Deripaska, estimated by Forbes magazine to have a net worth of $6.7 billion, is the main owner of the conglomerate EN+, which in turn is the co-owner of some of the world’s biggest metals producers, Rusal and Nornickel. 

Deripaska’s inclusion on the U.S. sanctions list could potentially create complications too for companies with which he does business; they include German car giant Volkswagen and commodities trader Glencore.

Deripaska called the U.S. decision “very unfortunate but not unexpected.”

“Certainly the grounds for putting my name on the list of SDNs as provided by U.S. officials are groundless, ridiculous and absurd,” he said, in a statement sent to Reuters by Basic Element, one of his businesses. SDN stands for “Specially Designated National.”

Hong Kong-listed Rusal is one of the world’s biggest aluminium producers. It says exports to the United States account for over 10 percent of its output.

Rusal owns assets in Italy, Ireland, Sweden, Nigeria, Guyana, Guinea. It owns a stake in Australian QAL, the world’s top alumina refinery.

Nornickel has assets in Finland, in Australia, where it holds a licence to develop the Honeymoon Well Project, and in South Africa, where it has a 50 percent stake in the country’s only nickel concentrate producer, Norilsk Nickel Nkomati.

A Nornickel representative declined to comment on the risks resulting from the sanctions on their shareholder.

FOREIGN PARTNERS

In its statement announcing the sanctions, the U.S. Treasury Department said U.S. entities will be “generally prohibited from dealings with” the people and firms on the sanctions list.

In addition, it said, companies outside the United States “could face sanctions for knowingly facilitating significant transactions for or on behalf of” sanctioned entities.

Volkswagen has a joint plant with GAZ, a Russian carmaker which is a subsidiary of Basic Element, which was also sanctioned on Friday. Under a contract that runs until 2025, the plant assembles vehicles from the Volkswagen stable.

The German automaker has been in talks to buy a stake in GAZ, five sources familiar with the discussions told Reuters in December last year.

Swiss-headquartered Glencore is a shareholder in Rusal, and his said it plans to switch those shares to Deripaska’s newly-created holding company, EN+.

According to a Rusal prospectus, its major customers include Glencore, Toyota, and Rio Tinto Alcan.

Other foreign firms with ties to Deripaska’s empire include Austrian construction company Strabag, in which the Russian’s firm Rasperia has a blocking stake, and Singapore’s Changi Airports International, which is a partner with a Deripaska-owned airports firm.

KREMLIN CONNECTIONS

In his life and career, Deripaska has frequently intersected with the Kremlin and Russian officialdom.

He holds regular meetings with President Vladimir Putin, he invested heavily in building infrastructure for Russia’s 2014 Sochi winter Olympics, and has said his own interests are indivisible from the state’s interests.

The mother of Deripaska’s children, Polina, is the daughter of Valentin Yumashev, who was presidential chief of staff under former Russian president Boris Yeltsin. Yumashev later married Yeltsin’s daughter, Tatyana Dyachenko. Yeltsin and his entourage were instrumental in elevating Vladimir Putin to power as the anointed successor to the ailing president.

In February, the website of Russian opposition leader Alexei Navalny published a report alleging that Deripaska met Sergei Prikhodko, Russia’s deputy prime minister, on a yacht belonging to the businessman off the coast of Norway in 2016.

Deripaska accused Navalny and others of spreading lies that he had committed unlawful actions and obtained an injunction from a court requiring media outlets stop disseminating the disputed content. The Russian state telecoms watchdog blocked Navalny’s website.

TRUMP CAMPAIGN MANAGER

Deripaska did business in the 2000s with Paul Manafort, who later became campaign manager for Donald Trump when he was running for president.

At the time he was doing business with Deripaska, Manafort, a Republican operative, was providing campaign advice to Viktor Yanukovich, a pro-Moscow challenger for the presidency of Ukraine. Yanukovich was elected president in 2010.

A Cyprus-based company tied to Deripaska, Surf Horizon Limited, sued Manafort and his aide Rick Gates, in a New York state court in January, accusing them of misappropriating more than $18.9 million earmarked for deals in Ukraine in 2008.

That lawsuit emanated from a business partnership that dates to 2006 when Manafort and Gates convinced Deripaska to invest in a private equity fund that would make investments primarily in Russia and Ukraine, according to an offering memorandum referenced in the lawsuit.

Jeffrey Eilender, who is representing Manafort in the lawsuit, told Reuters last month he planned to argue for dismissal based in part on the assertion that Surf Horizon’s claims are past the statute of limitations.

On Friday, Eilender said he believed the sanctions would make the pursuit of the lawsuit meaningless. “As a practical matter, he can’t take money or assets out of the United States,” Eilender said, referring to Deripaska. Gates currently does not have counsel in the Surf Horizon case.

Despite the lawsuit, Manafort sought to stay in contact with the oligarch. Last year the Washington Post reported that Manafort sent an email in July 2016 through an intermediary offering Deripaska “private briefings” about Donald Trump’s presidential campaign. Manafort was chairman of the campaign at the time.

Manafort spokesman Jason Maloni has said the email ex­changes were “innocuous” and aimed at collecting money owed by past clients.

•Adapted from a Reuters report.

 

 

Source News Express

Posted 07/04/2018 7:53:39 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Navy redeploys 61 senior officers

We’ll make Anambra ungovernable if LG polls are...

Participants count losses as MMM officially closes shop...

Bureau of Public Procurement inducted into FOI Hall...

Editor escapes death in Kogi Government House

Fisayo Soyombo: The good and bad of Buhari’s...

87 million children under 7 have known nothing...

Court strikes out bail application in alleged N8bn...

NASSI faults FG’s mass sack of heads of...

THERE'S MORE TO LIFE THAN POLITICS (When some...

Oil wells: AMAECHI A MISCHIEVOUS LIAR —Bayelsa State...

Ladoja warned against fuelling violence in Oyo State...

 

Latest News Presidency: 2019 is for major game-changer, By Charles Adeyinka Playing chess with human lives, By Ekene Odigwe R-APC will leave APC, with or without Saraki – Baraje PDP chieftain shot dead in Lagos during meeting Police dismiss 4 SARS operatives for robbery, other crimes Boko Haram invades Chad, slaughters 18, kidnaps 10 women Dasuki: ‘Buhari misled by northern cabals’ Police arrest five PDP chieftains over killing of LG chairman JAMB remits N7.8bn as examination surplus Dickson urges stronger unity in Osun PDP before guber polls Fears of arrest, abuse by Govs may kill State Police Bill – Sen. Ibrahim 2018 Budget: Minister replies HEDA’s FOI request on inserted projects

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (364,017 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (359,431 views) Shameless Genevieve Nnaji exposes breasts in public (287,866 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (236,143 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (215,623 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (213,078 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (187,256 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (169,245 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (156,662 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (153,444 views) Lagos plane crash: Journalist releases victims’ names (148,224 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (139,286 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (52) Business & Economy (3,365) Business Verdict (48) Columnists (890) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (516) Features (616) Global Business Monitor (286) International (2,160) Interview (159) Live Commentary (28) Love Matters (127) News (37,359) Opinion (1,025) Pidgin (10) Politics (5,653) Religion (790) Sports (1,613) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Nigerian detainees send SOS from Osama prison

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement