DUSHANBE, July 19, Asia-Plus – Tajik Aluminum Company (Talco) announced filing lawsuit against several affiliates of the United Company Rusal (UC Rusal) in the British Virgin Islands (BVI).
Press release issued by Talco, in particular, said that they had decided to file suit against them in BVI because two of defendants, namely Rual Trade Limited (Rual) and Ellerei Management Limited (Ellerei), are registered in BVI. “Rual and Ellerei played a central role in the frauds during 1996-2004, earning millions of dollars on them,” press release said.
According to press release, Rusal was aware of the corrupt relationship between the Tajik aluminum plant’s former director Abduqodir Ermatov and Ansol top manager Avaz Nazarov and exploited this to its own advantage. “Rusal and its affiliates supplied alumina and other raw materials to the Tajik aluminum plant at inflated prices, receiving in return finished aluminum at excessive discounts.” – and that Rusal itself defrauded the Tajik plant in the course of supply and purchase arrangements.
Talco’s press release says Rusal’s chief executive Aleksandr Bulygin knew of the corrupt relationship and the frauds. “”Documents brought to light by Talco show that Aleksandr Bulygin was a key figure in those events, which are focus of Talco’s lawsuit.”
“It was Bulygin that promised in his testimony, given in June 2005, that Rusal will assume its part of responsibility for frauds, if such responsibility is established,” Talco’s press release said.
Commenting on the situation, Sayohat Qodirova, a spokeswoman for Talco, noted that Tajik aluminum group had disposed itself to definitely pursue its claim against Rusal and its affiliates and expect eventually to be paid for damage caused to it by Rusal.
We will recall that the July 17 item of FT.com titled “Tajik group files lawsuit against Rusal” says United Company Rusal, the Russian aluminum group, is fresh legal problems following the launch of a lawsuit in the British Virgin Islands (BVI) by Tajik Aluminum Company. The article notes that The BVI lawsuit is the latest development in a long-running legal battle, potentially worth hundreds of millions of dollars, being waged over a state-owned aluminum smelting plant in Tajikistan.
Talco alleges that a Tajik businessman, Avaz Nazarov, had a “corrupt relationship” and paid bribes to Abduqodir Ermatov, the plant’s former manager. This, it maintains, allowed Ansol, a Guernsey-based company associated with Mr. Nazarov, to supply raw materials to the plant at inflated prices, receiving in return finished aluminum. The barter deal, it maintains, went back to the 1990s, and gave Ansol a $485 million profit on its dealings with TadAZ.
Talco’s new BVI lawsuit alleges that Rusal was aware of the supposedly corrupt relationship between Mr. Ermatov and Mr. Nazarov and exploited this to its own advantage – and that Rusal itself defrauded the Tajik plant in the course of supply and purchase arrangements.
In documents filed in the BVI, TadAZ also alleges that both Oleg Deripaska, Rusal’s major shareholder and Alexander Bulygin, Rusal’s chief executive, knew of the relationship and the bribes.
Rusal on Tuesday dismissed the accusations as “baseless”.
