Glencore in crossfire of Russian dispute
Commodity marketing and mining giant Glencore International has confirmed that it is embroiled in a legal dispute as a result of its aluminium supply deal with UC RUSAL, the world's largest aluminium producer.
Commodity marketing and mining giant Glencore International has confirmed that it is embroiled in a legal dispute as a result of its aluminium supply deal with UC RUSAL, the world's largest aluminium producer.
The company has received a request for arbitration following Viktor Vekselberg's resignation from the board of UC RUSAL in the wake of the aluminium giant's massive supply deal with Glencore.
Due to the confidentiality obligations in the UC RUSAL shareholder arrangements, Glencore does not intend to comment further in relation to the arbitration proceedings.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Russian billionaire Vekselberg resigned as Chairman of RUSAL in March, after falling out with RUSAL's Chief Executive, Oleg Deripaska.
According to reports, Vekselberg's investment firm, Sual Partners, is bringing a case against RUSAL, Glencore, Deripaska and En+, a holding company controlled by Deripaska and which owns 47.4% of RUSAL. Sual owns 15.8% of RUSAL and Glencore 8.75%.
The London Court of International Arbitration will rule on a dispute over the approval of long-term contracts for the supply of primary aluminium and alumina between UC RUSAL and Glencore, in a deal worth more than $47bn. Vekselberg believes his company, Sual, had the right of veto over the deal.
JH
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published