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.
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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
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