RUSAL Plans To Replace its Less Efficient Aluminium Smelters with Modern Production Facilities

United Company Rusal Plc announces that its Board of Directors approved a long term program of gradual reduction of primary aluminium production at a number of less efficient aluminium smelters currently owned and operated by the Company.

In order to maintain a competitive position in the global aluminium market, the Company is contemplating a permanent reduction of primary aluminium smelting capacity with a high relative cash cost position per tonne of primary aluminium.

The Company will place under review and evaluation the feasibility of decommissioning of the following smelters (hereinafter, the "Smelters”): Bogoslovsk aluminium smelter ("BAZ”), Volkhov aluminium smelter ("VAZ”), Nadvoitsy aluminium smelter ("NAZ”) and pot rooms 3 and 4 of Phase 1 of Novokuznetsk aluminium smelter ("NkAZ”). The Company estimates that the Program will affect approximately 275 thousand tonnes of primary aluminium capacity (if compared with 2011 production). Subject to the review proving the feasibility of curtailment and permanent reduction of smelting capacities, it is expected that up to 150 thousand tonnes of the smelting capacities could be decreased by the end of 2012 with the remainder to be gradually decreased in stages by 2015 and 2018.

Under the Program, it is envisaged that the decommissioning of the Smelters will coincide and be aligned with the commissioning of modern and highly efficient facilities in Siberia, including the commissioning of the Boguchany aluminium smelter.

The proposed decommissioning of the Smelters is still subject to certain approvals of the relevant Russian authorities and further Board approvals.

Shareholders and investors are advised to exercise caution when dealing in the securities of the Company