Glencore CEO quits Rusal board as US sanctions hit share price

Glencore chief executive Ivan Glasenberg has resigned as a director of Russian aluminium producer Rusal after the US imposed sanctions against Kremlin-backed companies and oligarchs.

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Swiss-based Glencore was responding after its shares took a hit on Monday as investors reacted to the US decision.

In a statement, Glencore said it was “taking all necessary measures in order to mitigate any risks” to its business as result of the designation of Rusal and its parent company EN+ as Specially Designated Nationals (SDNs) by the Trump administration.

Commodities trader Glencore holds 8.75% in Rusal, shares in which fell 50% on Monday, and said it has “various contracts” with the firm to buy aluminium and alumina. The company is controlled by Russian businessman Oleg Deripaska.

It said it was still evaluating the position under its contracts with Rusal, but noted that these were “not financially material”.

“Glencore is committed to complying with all applicable sanctions in its business and is and EN+ as SDNs, including in respect of secondary sanctions,” the company said.

It added that it would not be proceeding with a previously signed non-binding term sheet with EN+ to swap its shares in Rusal for global depositary receipts in EN+.