The Ministry of Natural Resources says it is “cautiously optimistic” that there is a favourable resolution in sight for the US government and Rusal, dulling the threat to jobs within the local workforce.
“The Ministry has been monitoring this unfolding saga for several months, and making necessary interventions, in conjunction with the Ministry of Foreign Affairs, which has provided quiet diplomatic support, and is pleased that following a series of extensions that led to the postponement of the enforcement of the sanctions, a permanent and favourable resolution is in sight,” a release from the ministry said yesterday.
It was noted that Rusal owns 90% of the Aroaima, Berbice-based Bauxite Company of Guyana Inc (BCGI) and employs over 500 persons at its operations on the Berbice River between Kwakwani and Linden. The majority of those workers are said to be Guyanese.
In April 2018, their jobs became threatened when the U.S. Treasury imposed sanctions on Oleg Deripaska, majority shareholder of Rusal, as well as on aluminum giant United Co. Rusal and other companies he owns shares. They had cited “malign activities” as grounds for the sanctions. It was reported that the move caused turmoil in the global aluminum market and caused prices to rise as much as 20%.
However, the release noted, on Thursday, Rusal, in a statement, assured that it “will do everything necessary to return the company to regular working conditions”.
According to the release, the parties have agreed that Deripaska will significantly lower his stake in the company. The release stated that the companies under investigation will be subject to ongoing compliance and will face severe consequences if they fail to comply. It was noted that the move is set to take effect in 30 days.
“According to official reports, the US Treasury Department believes that companies in which Mr. Deripaska owns shares, have committed to significantly diminish ownership and sever his control, hence their move to remove financial restrictions on Rusal and other groups in which he owns majority shares,” the release said.
(See other story on page 4.)
