LCIA arbitral tribunal rules in favor of UC RUSAL in a case regarding ALSCON

UC RUSAL, a leading global aluminium producer, announces that a three-member LCIA arbitral tribunal in London rendered an award in favour of UC RUSAL in its case against four Nigerian state entities: the Bureau of Public Enterprises, the Federal Government of Nigeria, the Ministry of Finance, and the National Council for Privatisation.

This award is the culmination of a case brought by the Company in August 2012 against the respondents to confirm the legal status of certain shares in the Aluminium Smelter Company of Nigeria Plc (“ALSCON”) that were purchased by the Company from the respondents in 2006.

In the consent award of 15 October 2014 the tribunal confirmed the parties’ agreement to the effect, inter alia, that the share purchase agreement between the Company and the respondents of 3 February 2006 (“SPA”) is valid, binding, and in full force and effect according to its terms; that under the SPA the Company acquired full legal and beneficial title to the relevant ALSCON shares free and clear of all encumbrances; and that the respondents’ counterclaims are dismissed.

Commenting on the tribunal’s award, Alexey Arnautov, UC RUSAL’s director for new projects, stated: “We are pleased that the LCIA tribunal found in our favour in accordance with the agreement of the parties. Since the acquisition of ALSCON shares, RUSAL has put great efforts into turning the smelter, which had previously sat idle for 10, years into a modern, technologically advanced manufacturing enterprise. Although smelting operations are currently suspended as a result of our output reduction programme, we are making every effort to ensure that ALSCON will be ready to recommence production once the aluminium market improves.”