Russia's Rusal slapped with U.S. sanctions cuts net profit by 31% in Q2 against Q1

Russian oligarch Oleg Deripaska's UC Rusal that was slapped with U.S. sanctions posted a 31% decline in net profit in the second quarter of 2018 (Q2) against the first quarter (Q1).

In particular, Rusal's profit was estimated at US$218 million, while the quarterly revenue fell by 18% to $2.25 billion, Dozhd media outlet wrote, referring to the company's report.

At the same time, the adjusted profit over the six months increased by 15%, while revenue rose by 4%, to $535 million and $4.99 billion, respectively.

The U.S. Department of the Treasury in early April imposed sanctions against Oleg Deripaska and related companies. At the same time, Washington said that restrictions on the companies could be lifted if Deripaska lost control over them. The businessman decided to abandon the management of Rusal and change its board of directors.

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On August 1, the U.S. extended the deadline for disposal of Rusal's securities as well as those of En+ and other Deripaska's entities from August 5 to October 23.

Last week it became known that the businessman did not accept the terms of the U.S. Department of the Treasury to lift the sanctions against Rusal.

"Deripaska believes the U.S. demands make no economic sense and are close to 'enslavement,' said the people, who asked not to be identified because the talks are confidential. They didn't elaborate on what he dislikes or how the matter might be resolved," Bloomberg wrote.