Russia’s RUSAL wants Ukraine to redeem investment in local plant

MOSCOW, Oct 26 (PRIME) -- Russian aluminum giant UC RUSAL has filed a suit to the International Centre for Settlement of Investment Disputes (ICSID) demanding Ukraine to redeem the company’s investment in Zaporozhye Aluminum Complex, a RUSAL representative told PRIME on Wednesday.

“Affiliates of RUSAL have turned to the ICSID with a request to compensate investment in Zaporozhye Aluminum Complex. The defendant under the claim is Ukraine. RUSAL expects that legitimacy of affiliates’ demands will be confirmed by the arbitration court,” the representative said.

Earlier on Wednesday, the company said in a statement that it and its affiliates Emergofin B.V. and Velbay Holdings Ltd. have filed the request.

Earlier in October, Ukraine put some affiliates and employees of RUSAL on its sanctions list, saying they are a threat to Ukraine’s integrity and security. RUSAL said the accusations are unjustified and only an attempt to expropriate Zaporozhye Aluminum Complex in favor of the country.

In 2015, RUSAL filed a suit to the European Court of Human Rights against the March 2015 decision of Ukraine’s Supreme Court to transfer a 68.01% stake in the plant, which annual production capacity amounts to 110,000 tonnes of aluminum, to the country.

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