New obligations have been imposed on GAZ Group

New obligations have been imposed on GAZ Group


Finmarket.- A new postponement has been announced on the date of implementation of the US sanctions against GAZ Group by the US Treasury last week, accompanied by the introduction of new requirements from the Russian car manufacturer.

An updated list of frequently asked questions has been published by OFAC on Wednesday evening, clarifying the essence of the licence issued on 16 July, on the extension of operations with GAZ.

In accordance with the clarifications and the contents of the licence, GAZ Group is now under the obligation to provide the US Treasury with financial reports and the details of the meetings of the board of directors, reports on the composition of the board and changes in it, as well as lists of any planned or created joint ventures, within five days after each quarter’s end. A similar process of reporting has been established for the financial agreements of GAZ in the amount of $5 million or more.

In addition, as written in the licence text, from now on GAZ has to confirm to OFAC that it’s not operating on behalf of Oleg Deripaska or other people included in the sanctions list of the US, within five days following the end of each month, giving assurance on the exclusivity of the control of the companies by the board of directors and shareholders.

As reported, the completion period of the negotiations on the lifting of sanctions against Oleg Deripaska’s GAZ Group has been extended for another six months. The next deadline, due for 22 July 2020, has been postponed to 22 January 2021 by the Sanctions Committee.

GAZ has been subject to US sanctions since April 2018, along with its owner Oleg Deripaska. The restrictions have not been fully implemented yet. OFAC periodically postpones the deadline, in order to allow time for the completion of the negotiations on the removal of sanctions against GAZ Group. Two other large companies belonging to Deripaska: En+ Group and Rusal have been excluded from the SDN List, when the businessman gave up control over them.

The previous periodical flow of information on the progress of negotiations on the lifting of sanctions against GAZ has recently stalled, as told by Deripaska at the end of January. “Everyone is concentrating on the impeachment and the upcoming election in the United States at the moment. No-one seems to be interested in our process – lifting of the sanctions against GAZ. This year will be hard for GAZ” – said Deripaska during an interview with Bloomberg TV on the sidelines of the Davos forum.

GAZ has repeatedly expressed the negative effect of the sanctions on the financial situation of the company.