UC Rusal has warned shareholders that the US Treasury's sanctions on the company may hamper its cashflow and its ability to obtain financing, according to a statement released on Thursday May 24.
A separate announcement was also released on Thursday announcing the resignation of the company's chief executive officer and seven directors. The Russian aluminium company, which accounts for 7% of global aluminium production, was sanctioned by the US Treasury on April 6. Since then, the US has eased sanctions, giving Rusal customers until October to wind down their contracts with the Russian company. Rusal said unless sanctions are lifted or the winddown period is extended after October 23, its customers are likely to discontinue any existing contracts after the date. "[Rusal]'s production of metal and the sales would be severely impacted," the company said. The fall in sales and additional costs in rearranging the company's supply chain, "may...