Threat to 700 Limerick jobs lifted
Around 700 jobs at Aughinish Alumina in Limerick now appear to be fully secure after the US Treasury accepted concessions made by its owner to end sanctions imposed on it.
The Treasury said it was satisfied Russian billionaire Oleg Deripaska had made provisions to relinquish control over a number of companies, including Rusal, the parent of Aughinish Alumina, near Askeaton.
In response to a New York Times investigation into Mr Deripaska’s future arrangements with Rusal, EN+, and ESE, the Treasury said the companies had provided it “with an unprecedented level of transparency into their dealings to ensure that Mr Deripaska does not reassert control”.
The investigation suggested the Treasury deal with Mr Deripaska was favourable to the oligarch after intense lobbying on his behalf by Washington insiders.
The Treasury defended the deal made, saying it would prevent Mr Deripaska from carrying out “illicit activities on behalf of the Kremlin”.
“Treasury will be vigilant in ensuring these commitments are met, and failure to comply will bring swift consequences, including the reimposition of sanctions,” it said.
Mr Deripaska had been targeted by the US administration over perceived close ties to the Kremlin, and companies linked to him had suffered in the fallout as sanctions were imposed last April.
The sanctions on the companies that led to Rusal’s shares plummeting last April and volatility in the metals markets are expected to be lifted imminently.
Aughinish Alumina has been described as one of Limerick’s best employers, supporting 700 jobs, with hundreds more indirectly tied to it.
As well as Aughinish, Rusal supplies about 6% of the world’s aluminium and operates mines, smelters, or refineries in locations including Guinea, Jamaica, and Russia.
The threat to the jobs had led to intense lobbying on behalf of the company by the Government, with Business Minister Heather Humphreys negotiating in Washington for their preservation.
Treasury secretary Steve Mnuchin said the sanctions were never intended to punish companies like Rusal, but to target Mr Deripaska.
US political figures on both sides of the political divide voiced their disapproval at ending the sanctions on the companies last week. The dissenters included more than 100 Republicans in the House of Representatives.
