Stocks of Rusal collapse 50% after USA sanctions


Prices of the metal, vital in the aircraft manufacturing and auto industries, jumped as traders protected themselves against the chance that United Company Rusal - the biggest aluminium maker outside China - will be prevented from supplying the global commodity market.

The Kremlin slammed the sanctions. The company floated its shares in London in November, raising $1bn (£710m), despite concerns that it could face sanctions related to Deripaska's ties to Putin.

The Russian government was "doing everything possible to minimise negative consequences" of the USA measures, he added.

Russia's stock market tumbled yesterday in the wake of the sanctions. "This is an outrageous business from the point of view of illegality, from the point of view of flouting all the norms, and of course careful analysis is needed here", said spokesman Dmitry Peskov.

The stock has taken a hit after the United States on Friday imposed sanctions on Deripaska and six other Russian oligarchs as well as 12 companies they either own or control.

The company earlier said that it regretted its inclusion on the new USA sanctions list, adding that its advisors were studying the situation, Reuters reported.

More news: Too many people are now missing out on health coverage
More news: No joke: More snow likely Friday and possible nor'easter next week
More news: Caster leads SA at Commonwealth opening ceremony

Evraz, the steel company controlled by the Chelsea football club owner Roman Abramovich, was the biggest faller in the FTSE 100, dropping nearly 15%. It was mentioned that the USA sanctions are highly likely to will have a negative impact on the business of the company and its development.

Shares with Russian exposure listed elsewhere were also hit. He said the new U.S. sanctions were unacceptable and illegitimate, and that the government would come up with plans to support the companies affected.

The US Treasury has said investors have until 7 May to divest or transfer debt, equity or other holdings in Rusal, En+ and Russian carmaker Gaz.

"This is due to sanctions imposed by the U.S. on Russian oligarchs and their companies on Friday", it added.

The US said it imposed the latest sanctions because of Russian activity in Ukraine, its support of President Bashar al-Assad in Syria's civil war and for subverting Western democracies.