Trump lifts sanctions on Rusal; aluminum plunges

The US Treasury announced on Wednesday it would lift sanctions on the companies of Russian businessman Oleg Deripaska, including Rusal, sending aluminum prices down to a 16 month low.

Rusal stock climbed to an eight-month high (up as much as 26.8%) after the US Treasury announced they would scrap the sanctions imposed in April on Deripaska's En+ empire for carrying out “malign activities” for Russia.

Deripaska, who is a known member of Russian President Vladimir Putin’s inner circle, will now see his ownership of Rusal and En+ diminished as part of the deal with the US Treasury.

Three Deripaska companies - Rusal, En+ and JSC EuroSibEnergo - all agreed to restructuring changes including reducing Deripaska's stake.

Although the US government has removed the penalties on Rusal, Deripaska will remain under sanctions, the Treasury said.

Rusal welcomed the decision of the US Treasury and will continue doing its utmost to return to normal work, the company said in a statement on Thursday.