Agreement Between EN+ Group Plc, UC Rusal, and OFAC on the Terms of Removal of EN+ Group Plc, UC Rusal Plc, and JSC Eurosibenergo From the SDN List

Date issued: Dec. 19 2018

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TURBOFAC Commentary (1004 words)

Notes:

1) For commentary on the portions of this agreement that were disclosed to the public at the time of its execution, see OFAC Notification to Congress of its Intention to Terminate the Sanctions Imposed on En+ Group plc, UC Rusal plc, and JSC EuroSibEnergo.

2) Commentary on the difference between the Notification and the full agreement follows below:

I) Advantage Deripaska?

Comparing the executed TOR Agreement to the Treasury’s concurrently published “Notification to Congress,” there appears to be some fodder for those that were skeptical of the restrictiveness of the deal when it was initially announced.

There is, for example, language in the Notification to Congress suggesting, but not saying concretely, that “Deripaska…seek[ing] to influence” the delisted companies could be a breach of the TOR Agreement. The TOR Agreement, by contrast, seems rather clear that “influence” short of “control”...