Local bauxite workers breathe easier …as US moves to lift Rusal’s sanctions

Dec 21, 2018 News

Rusal workers will breathe easier after news that sanctions will be lifted.

After months of worry, workers of Bauxite Company of Guyana Inc. (BCGI) will be breathing a little easier, after news this week that the US will be lifting sanctions on parent company, Rusal.
Yesterday, the Government of Guyana and the Ministry of Natural Resources said they remain cautiously optimistic, and happy, after learning that the US Government sanctions are heading towards resolution.
“The Ministry has been monitoring this unfolding saga for several months, and making necessary interventions, in conjunction with the Ministry of Foreign Affairs, which has provided quiet diplomatic support, and is pleased that following a series of extensions that led to the postponement of the enforcement of the sanctions, a permanent and favourable resolution is in sight.”
The Ministry said that it continues to ensure that bauxite is mined and shipped to the benefit of workers and their families, and by extension, the national economy.

Minister of Natural Resources, Raphael Trotman, talking to Rusal workers earlier this year.

The Ministry also disclosed that the Ministry of Social Protection, charged by the President, and directed by the Cabinet, will be responsible for addressing the ongoing, and future, labour issues and guard workers’ rights.
Rusal owns 90% of the Aroaima, Berbice-based Bauxite Company of Guyana Inc (BCGI). It employs over 500 persons at its operations on the Berbice River between Kwakwani and Linden with the majority being Guyanese.
“These workers have continuously expressed their concern about the impact of these sanctions on the company and them. In a statement from the company on Thursday, it maintained that it “will do everything necessary to return the company to regular working conditions”.
In April 2018, the U.S. Treasury imposed sanctions on billionaire Rusal majority shareholder, Oleg Deripaska, aluminum giant United Co. Rusal, and other companies he owns shares, citing “malign activities”. This has since triggered turmoil in global aluminum markets, seeing prices elevating to as much as 20%.
The agreement reached by the parties outline that sanctions on the company would only be lifted if Mr. Deripaska would significantly lower his stake in the company, which, it is reported, has been agreed.
According to official reports, the US Treasury Department is convinced that companies in which Deripaska owns shares, have committed to significantly diminish and sever his control, hence their move to remove financial restrictions on Rusal and other groups in which he owns majority shares. The companies will be subject to ongoing compliance and will face severe consequences if they fail to comply. The move is set to take effect in 30 days.
In Guyana, the sanctions had affected production with the shipping company, Oldendorff Carriers, announcing its pullout a few months ago, in the face of being sanctioned also if it did business with Rusal.
Government had established a task force, which workers said had not met often.

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