Russia's Rusal files suit against Rio Tinto over alumina refinery -documents (updated)

Alumina

06/06/2022 03:57

(Adds details from court filing)
    By Praveen Menon
    SYDNEY, June 6 (Reuters) - Russian aluminium producer Rusal
 RUAL.MM  has filed a lawsuit against global miner Rio Tinto
 RIO.AX , seeking to win back access to its 20% share of the
alumina produced at a jointly owned refiner in Queensland.
    The lawsuit challenges Australia's response to Russia's
invasion of Ukraine, which included wide-ranging sanctions
against Russian firms and oligarchs who had links with President
Vladimir Putin.
    Rio stepped in to take sole control of Queensland Alumina
Ltd (QAL) in April, sidelining Rusal and cutting its access to
the refinery's output of alumina, a compound from which
aluminium is derived. Rio owns 80% of the refinery, while Rusal
owns the remaining 20%.  urn:newsml:reuters.com:*:nL3N2W53CB
    Rusal's Australian unit Alumina and Bauxite Company (ABC)
said in a Australian Federal Court filing that the circumstances
required for Rio to step-in to take control did not exist and
amounted to a breach of obligations, according to the court
documents reviewed by Reuters.
    Rio's move at QAL came shortly after the world's biggest
iron ore miner severed all ties with Russian businesses over
Moscow's invasion of Ukraine. Russia calls its actions in
Ukraine "a special operation".
    Australia banned the export of alumina and aluminium ores,
including bauxite, to Russia in March.  urn:newsml:reuters.com:*:nL3N2W53CB  
    In the filings reviewed by Reuters, Rusal's subsidiary asks
the federal court to restore its rights at QAL, and declare
there would be no sanctions breach if its business continues
there.
    Rio declined to comment. Rusal, the world's second largest
aluminium producer, could not be immediately reached for comment
outside usual business hours. 
    Rusal was not directly targeted by Australian sanctions, but
Rio's actions were triggered by sanctions on oligarchs Oleg
Deripaska and Viktor Vekselberg, who own stakes worth 25.6% and
8% respectively in Rusal.  urn:newsml:reuters.com:*:nL2N2VL020
    In 2018 Rusal was covered by U.S. sanctions against Russian
businessmen and companies. 


 (Reporting by Praveen Menon and Renju Jose; Editing by Diane
Craft and Kenneth Maxwell)
 ((renju.jose@thomsonreuters.com; +61 29171 7126;))