Will Rusal default on some liabilities due to new sanctions?

Will Rusal default on some liabilities due to new sanctions?

Russian aluminum giant Rusal reported a possible technical default on certain types of debt obligations due to the introduction of new US sanctions. 

Shares of Rusal plunged as much as 41.8% today, its lowest since October 2016.

The company earlier said that it regretted its inclusion on the new U.S. sanctions list, adding that its advisors were studying the situation, Reuters reported.

"The company’s initial assessment is that it is highly likely that the impact may be materially adverse to the business and prospects of the group," the company said . It said further evaluations were being carried out to assess the impact of the sanctions.

Rusal assesses that the sanctions may result in technical defaults in relation to certain credit obligations of the group, and the company is evaluating the impact of such technical defaults on its financial position.

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