London listed EN+ given extra time over US led Oleg Deripaska sanctions

BELEAGUERED energy and metals group EN+ has been given more breathing space by Washington in its bid to escape US sanctions against its major shareholder, tycoon Oleg Deripaska.

Deripaska featured on a list of oligarchs and companies facing sanctions last month and owns a 70% stake in Russia’s EN+, whose shares have collapsed since controversially floating in London last November.

EN+ was facing the suspension of its London-listed global depository receipts, which allow the company to trade alongside domestic stocks, from tonight, ahead of the sanctions which come into force on Monday.

The receipts fell by more than half after the sanctions move on April 6. But the US Treasury Department has extended until June 6 the deadline for Deripaska to sell down his holding in EN+ below 50% and resign from the company.

This will allow chairman and former energy minister Lord Barker time to finalise plans.

It is understood that the move will allow the GDRs to trade again in London tomorrow although the LSE declined to comment.

Sources said US officials had been receptive to Barker’s rescue proposals although it wants to keep the company on a “tight leash”.

The chairman has to hunt internationally for a buyer of more than 20% of the firm before heading to Washington before the June deadline to seek final approval