The government has secured a reprieve from the US sanctions to be imposed on Windalco due to it’s parent company, UC Rusal.
Mining Minister, Robert Montague, today announced that the Office of Foreign Assets Control, OFAC, of the US Treasury has responded favorably to a request for a waiver.
However, this reprieve ends on October 23 when the full weight of the sanctions against UC Rusal will come into effect.
Mining Minister, Robert Montague, says the US government has given Windalco leave to conduct business despite planned sanctions against its parent company, UC Rusal.
The reprieve was granted in a letter from OFAC through Jamaican ambassador to the US, Audrey Marks, on July 18.
US citizens have been given until October 23 to cut ties with UC Rusal to avoid being hit by the sanctions.
The sanctions are being imposed on Russian Oligarch, Oleg Deripaska, and companies in which he has significant interest.
This includes UC Rusal and its subsidiary, Windalco.
The planned sanctions announced in April have caused banks to shy away from Windalco in order to avoid backlash from the United States.
Thousands of Jamaicans rely on the bauxite plant for their economic survival.
The plant itself accounts for 25-percent of Jamaica’s bauxite output.
Minister Montague told the House of Representatives that while this isn’t a permanent fix, it’s a step in the right direction.
He expressed confidence that a waiver to conduct business beyond the October 23 deadline can be obtained.