Ukraine High Court decides to take over Rusal’s 68% stake in ZALK

Ukraine High Court has decided that they will nationalize the Zaporizhia (Zaporozhye) alumina and aluminium complex (ZALK) which was acquired by Russian giant Rusal 12 years ago holding a 68% stake at present.

The news came via an announcement issued by the General Prosecutor’s office on Thursday.

Rusal had abandoned the aluminium plant located in southeastern Ukraine years ago due to low aluminium prices, and the debate surrounding the ownership of the plant had been raging for many years.

Ukraine government has started a drive to reclaim all the assets built on Ukrainian territory owned by Russia, after Russia did the same post the Crimea annexation last year, resulting in increased tension between the two countries.

According to the prosecutor, the disputed plant is worth 380 billion hyrvnas ($17 million) owned by the Russian billionaire Oleg Deripaska. Termed as the oldest aluminium factory in Ukraine, ZALK dates back to 1993 which does raise questions about the true value of the plant.

A Rusal spokesperson said that they would challenge the High Court’s decision in international court.