United Company RUSAL has finally crossed over on the winning side of a long-running courtroom battle that threatened to saddle the world’s second-largest aluminium producer with hundreds of millions in potential liabilities.
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The company announced that the Commercial Court of the North-Western Region has upheld earlier rulings in its favour, dismissing a claim brought by SUAL Partners ILLC. At the heart of the dispute were hedging transactions linked to aluminium prices, which SUAL alleged had triggered losses amounting to USD 760 million. SUAL Partners is a significant minority shareholder (around 25.5 per cent) in UC Rusal, with ownership interests held by figures like Viktor Vekselberg and Len Blavatnik.
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The rejection of both the claim and subsequent appeals is a critical legal victory for RUSAL. The case had loomed large over its financial outlook, raising questions about the company’s exposure in an already volatile global aluminium market. RUSAL and SUAL Partners have jointly come to headlines several times owing to ongoing legal disputes and corporate disagreements, with SUAL Partners frequently challenging Rusal’s decisions through shareholder actions and litigation, as they have veto rights under their 2010 shareholder agreement for key decisions.
By securing a favourable ruling, RUSAL has effectively drawn a line under a dispute that could have destabilised its balance sheet at a time when the sector is navigating tariff pressures, demand headwinds, and heightened geopolitical risk.
In a press release published by RUSAL a decade ago, the company stated, “RUSAL would like to reiterate that SUAL Partners’ destructive actions not only damage the Company’s reputation, but also destroy its shareholder value. With this in mind, we are considering the option of pursuing legal action in order to protect the Company’s interests.”
While hedging strategies are a standard risk management tool across commodities, disputes over their structure and execution can leave even industry giants exposed. For RUSAL, the court’s dismissal not only eliminates a potential multi-million hit but also strengthens its operational footing as it manages ongoing market turbulence.
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The current business structure arose from the merger of the SUAL Group, RUSAL, and Glencore's alumina assets in 2007, creating the United Company RUSAL. For now, RUSAL has secured breathing space, and the ruling may help steady the company’s positioning as it navigates the shifting dynamics of the global aluminium trade.
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