The United States on Monday gave American customers of Russia’s biggest aluminum producer more time to comply with sanctions, and said it would consider lifting them if United Company Rusal Plc’s major shareholder, Russian tycoon Oleg Deripaska, ceded control of the company.

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Aluminum prices on the London Metal Exchange tumbled 8.7% on the US Treasury Department announcement, which gives Rusal longer to sell off large quantities of aluminum it had been stockpiling in the wake of sanctions.

Last week, aluminum prices rallied to their highest in years after Washington, in response to what it called “malign activities” by Russia, imposed the sanctions that will in effect choke off access for Deripaska’s businesses to the international financial system.

Treasury gave Americans until Oct. 23 instead of June 5 to wind down business with Rusal. It said it would not impose secondary sanctions on non-U.S. entities engaged with Rusal or its subsidiaries.

Shares in Rusal, one of the world’s largest aluminum companies, jumped 17.7% on the Moscow Exchange. Earlier, Rusal had ended Hong Kong trading down 8.4%. Shares of its U.S. rival Alcoa Corp slid 13.5% on the New York stock exchange.

First Published:Apr 24, 2018 1:22 PM IST