Russian aluminum producer Rusal was sanctioned earlier this month by Treasury's Office of Foreign Assets Control because of Oleg Deripaska's stake in the company. | Mike Clarke/Getty Images U.S. eases sanctions on aluminum firm tied to Russian oligarch

The Treasury Department Monday eased sanctions on Russian aluminum producer Rusal and said it would consider lifting them altogether if the company severs ties with Oleg Deripaska, a Russian oligarch with close ties to President Vladimir Putin.

Rusal was sanctioned earlier this month by Treasury's Office of Foreign Assets Control because of Deripaska's stake in the company. The Russian billionaire is alleged to have conducted a range of illegal activities, including money laundering, extortion and ordering the murder of a businessman, according to Treasury.


He is also reportedly part of special counsel Robert Mueller's investigation into Russian meddling in the 2016 presidential election.

OFAC's action extends by six months a "wind-down" period during which U.S. and foreign entities won't be penalized for doing business with Rusal. The agency said it is also considering a petition to lift sanctions on the company entirely.

Sign up for Morning Trade A speed read on global trade news — weekday mornings, in your inbox. Email Sign Up By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

"RUSAL has felt the impact of U.S. sanctions because of its entanglement with Oleg Deripaska, but the U.S. government is not targeting the hardworking people who depend on RUSAL and its subsidiaries," Treasury Secretary Steven Mnuchin said in a statement.

"Given the impact on our partners and allies, we are issuing a general license extending the maintenance and wind-down period while we consider RUSAL's petition," he added.

In a document released Monday, OFAC said "the path for the United States to provide sanctions relief is through divestment and relinquishment of control of RUSAL by Oleg Deripaska."

Deripaska made headlines last year after it was reported that former Trump campaign manager Paul Manafort offered him "private briefings" on the 2016 election less than two weeks after Trump became the Republican nominee.

The Russian oligarch filed suit in January against Manafort and business partner Rick Gates over a failed business deal.

