Russia – In order to resolve a feud between two major shareholders, Russian aluminium producer UC Rusal has announced that there is to be a hearing in the London Court of International Arbitration. The disagreement centres on a US$ 47 billion (Euro 35.8 billion) supply deal with commodities trader Glencore.
According to the Reuters news service, Viktor Vekselberg – who quit as Chairman last month and owns 15.8% of Rusal through his investment firm Sual Partners – is bringing the issue to court. Mr Vekselberg claims this is necessary because the deal was ‘struck in violation of its right of veto’, subsequently suing all the parties involved – namely Rusal, Glencore, Oleg Deripaska and the latter’s holding company En+.
‘The company has engaged counsel to advise in the arbitration and will vigorously defend its position,’ Rusal has stated, adding that it does not expect this to have an adverse impact on its operations.
The supply deal between Rusal and Glencore is set to run for a term of six years and will see the share of Rusal’s output marketed by Glencore rise from 30% to 50%. Mr Deripaska has confirmed the deal was approved last December but has not provided further details.
For more information, visit: www.rusal.ru/en