Rusal confirms legal dispute

UC Rusal confirmed on Monday that it had entered into a formal dispute with the Sual Partners Group over a $47 billion dollar supply deal with commodities giant Glencore.

The announcement affirmed a statement made last week by a source from RASPI, the Russian Legal Information Agency.

“The dispute relates to certain shareholder arrangements between the parties in respect of the company,” Rusal said, according to Reuters. “The shareholder arrangements provide for resolution of disputes by way of London Court of International Arbitration in London.”

At the heart of the issue is Russian billionaire Viktor Vekselberg, who stepped down as Rusal’s chairman in March. Sual is co-owned by Vekselberg, who holds a 15.8 percent share in Rusal. Sual argues that the $47 billion supply deal was made in violation of their right of veto.

The dispute follows a falling out between Rusal CEO Oleg Deripaska, Vekselberg and other minority shareholders who were unhappy with Deripaska’s refusal to sell the company’s stake in Norilsk Nickel. Rusal’s shares were down almost one percent on Thursday before the Hong Kong markets closed for the Easter holiday.

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