Mitch McConnell dropped sanctions on Oleg Deripaska after they offered to investion over $1 billion in an aluminum plant in Kentucky.
Department officials reversed the decision this week, after concluding that an American aluminum manufacturer had meant to object, but made a mistake in its paperwork.
.. Rusal is an unlikely company to win an exemption. Mr. Deripaska, its major shareholder, was blacklisted by the United States in April as part of an effort to punish members of Mr. Putin’s inner circle for interference in the 2016 election and other Russian aggressions. Mr. Deripaska and six other wealthy Russians were hit with sanctions that restricted their ability to travel to the United States or do business with any company in the West. As part of that effort, Rusal and other entities were also constrained from engaging in transactions with Western companies.
Mr. Deripaska was once close with Paul Manafort
.. Rusal’s first 19 requests were denied by Commerce Department officials. In late July, its 20th request was granted. To date, Commerce Department officials say they have never approved a request that another company objected to properly.
Democrats in Congress who noticed the exclusion were prepared to protest what they called suspicious timing, given that the exemption coincided with Mr. Trump’s summit meeting with Mr. Putin in Finland.
.. This week, the department reversed course on the exclusion, after The New York Times inquired about whether Century Aluminum had, in fact, filed an objection, given its pattern of objecting to nearly every other Rusal application. Department officials determined that Century had meant to file an objection to Rusal’s request, but had erred in submitting the paperwork. The department effectively fixed Century’s error, then ruled that the objection was valid — and that Rusal’s exclusion was void.
In light of Century’s “clear intent to file the required objection form, not completed due to its clerical error,” the department said in a statement, officials have now “considered the objection on its merits and determined it supports a denial.”
.. “The Trump administration granted this tariff exclusion, certifying no national security concerns, to a sanctioned subsidiary owned by a sanctioned Russian aluminum company, a mere three days after Trump’s surrender in Helsinki to President Putin,”
.. This is not about the failure of one of those American companies to object, but about continuing, very objectionable favoritism toward Putin.”
This week, the Trump administration further eased its pressure on Rusal, Russia’s largest aluminum company, less than four months after sanctions on it and its notorious leader were imposed. Even as the White House seems willing to inflict pain on American farmers and consumers with its trade wars, Russian aluminum workers are apparently worthy of special protection.
.. Rusal is controlled by Oleg Deripaska, a member of Mr. Putin’s inner circle. As the Treasury Department acknowledges, he has been investigated for
- money laundering and accused of
- threatening the lives of business rivals,
- illegally wiretapping a government official and
- taking part in extortion and racketeering.
.. There are also allegations, made public by the Treasury Department’s Office of Foreign Assets Control, that Mr. Deripaska
- bribed a government official,
- ordered the murder of a businessman and
- had links to a Russian organized crime group. During the 2016 presidential campaign,
- Paul Manafort, then Mr. Trump’s campaign manager, tried to offer Mr. Deripaska private briefings about the campaign.
.. Treasury Secretary Steven Mnuchin has said he is considering lifting the sanctions altogether because they are punishing the “hardworking people of Rusal.” But Mr. Mnuchin has it backward. If he was truly concerned about Rusal’s 61,000 employees, he would not relent until the company fully washed its hands of Mr. Deripaska and the corrupt regime the aluminum giant serves.
.. Behind Mr. Deripaska’s estimated fortune of as much as $5.3 billion, there stands a great crime. During the “aluminum wars” of the 1990s, when that economic sector was consolidating in the chaotic privatization that followed the collapse of the Soviet Union, the young metals trader was suspected of ties to gangsters as he seized control of huge Siberian smelters. According to testimony by a gang member in Stuttgart, Germany, part of Mr. Deripaska’s value to the group were his links to Russia’s security services. While his rivals were killed off or fled Russia, Mr. Deripaska somehow emerged as the director general of Rusal, a company that reported revenues last year of nearly $10 billion. But suspicions that the oligarch has had links to organized crime have denied him a visa to enter the United States.
.. they must do its bidding, which in Mr. Deripaska’s case meant spending more than $1 billion, through his holding company, on new infrastructure for the 2014 Winter Olympics in Sochi, Russia
Mr. Deripaska has embraced his role, stating that he does not separate himself from the Russian state.
.. Manafort tried to pitch him a plan for an influence campaign to “greatly benefit the Putin government.”
.. “Rusal’s own website says that it supplied military material to the Russian military that was potentially used in Syria.”
.. Mr. Deripaska’s holding company, hired a $108,500-a-month lobbyist to continue to negotiate with the Treasury Department. The firm he chose, Mercury Public Affairs, is the firm Mr. Manafort paid $1.1 million to lobby members of Congress on behalf of Ukraine and its then-president, Viktor Yanukovych
.. Led by David Vitter, a former Republican senator from Louisiana, Mercury has sought to enlist support from ambassadors of France, Germany and Australia, among others.
.. emanding more time to reduce the oligarch’s ownership stake in En+ from 70 percent to below 50 percent. In a July 24 filing with the Justice Department, Mercury outlined a host of calamities that might be unleashed if sanctions aren’t eased
- The global aluminum market might suffer significant disruptions with “severe collateral damage to United States interests, allies”;
- En+ might have to entertain a potential acquisition by “Chinese and/or other potentially hostile interests”; or
- Mr. Deripaska might just hang on to his majority stake.
.. The specter of a fellow traveler with gangsters dictating terms to the United States government is yet another sign of the Trump administration’s inexplicable capitulation to Russia.
.. July 16 summit in Helsinki, at which President Trump and President Putin met privately for more than two hours.
We don’t know what they discussed, but given the stakes on both sides, there’s a good chance that the discussion touched on the subject of the sanctions the United States has imposed on Russia’s biggest aluminum company.