Worldwide financial groups took action on Wednesday to distance themselves from the shares, bonds and metal of Russian aluminum giant Rusal after the United States imposed sanctions on the company. "The Department is also in close and regular contact with its enterprise agencies, IDA Ireland and Enterprise Ireland, who are monitoring this evolving situation", she said.
Shares in firms controlled by Oleg Deripaska have plunged after the USA imposed sanctions on seven Russian oligarchs and their companies on Friday. The plant refines imported bauxite into alumina, a major ingredient in aluminium manufacturing, and employs 450.
The company could not be reached for comment.
Glencore has previously signed a non-binding term sheet with EN+ regarding swapping its shares in Rusal for Global Depositary Receipts in EN+.
The share price fell 50 per cent to HK$2.32 yesterday, according to pricing from the Hong Kong Exchanges and Clearing website. Its yield had previously been steady at around 6 percent, but on Tuesday it spiked to 28.5 percent, a record high.
Glencore said that it has noted the designation of United Company Rusal Plc ("Rusal") and EN+ Group Plc ("EN+") as Specially Designated Nationals ("SDNs") by the United States Government.
A Moody's spokeswoman said the firm would not comment on whether it was reassessing any of its other Russian ratings.
The company's board is now made up of two executive directors, seven non-executive directors and five independent non-executive directors. Glencore owns a almost 9% stake in the firm.
Matt Chamberlain, the CEO of the London Metal Exchange (LME), said it would take steps to keep aluminium produced by Rusal after sanctions were imposed out of its warehouses.
The sanctions freeze any assets that those targeted have in U.S. jurisdictions and bar Americans from doing business with them.
At the same time, the list of companies includes several structures related to Oleg Deripaska - agroholding Kuban, Eurosibenergo, Rusal, Russian Machines and GAZ Group, investment company B-Finance, holdings Basic Element and En+.