Mamarizo Nurmuratov comments on sanctions against Akhangarancement

Chairman of the Central Bank Mamarizo Nurmuratov at a press conference on May 4 answered a question from journalists about the consequences of US sanctions against Akhangarancement.

“Indeed, this is a very worrying situation for us. Because more than 10,000 of our fellow citizens work there. This does not mean that sanctions will be applied and work will be stopped. We work with the US Treasury and OFAC (Office of Foreign Assets Control). A certain period is given; that is, these limits apply to their direct dollar transactions. The termination of banking operations and the payment of wages in the national currency is out of the question. You are right, there is a possibility that the bank servicing the plant may fall under secondary sanctions,” he said.

Nurmuratov also said that by order of the president, a group had been formed and work was underway with OFAC to resolve the issue.

“Because people work there, the plant plays a significant role in budget payments and in providing employment to the population. Therefore, the continuous operation of these enterprises is important to us. From the point of view of the well-being of the population and the budgetary security of the region,” the head of the Central Bank concluded.

It should be recalled on April 12, it became known that the US authorities imposed sanctions against the Akhangarancement cement plant and Akkermann Cement CA.

Akkermann Cement CA, which is a subsidiary of the Russian Akkermann Cement and is part of the USM group (controlled by Alisher Usmanov), has acquired a 98.6% stake in the Akhangarancement cement plant.

The deal was completed with financing from Gazprombank, a strategic financial partner of Akkermann Cement.

In January 2022, Akkermann Cement CEO Konstantin Morozov said that the company’s success is based on the motivation and development of employees, the best production technologies, direct sales and technical support for its customers.

The group of companies united under the Akkermann Cement brand is part of the diversified Russian holding USM. In 2021, the company produced about 4 million tons of cement. The main assets of the company are cement plants in Novotroitsk and Gornozavodsk, and later Akhangarancement joined them.