DUSHANBE, July 18, Asia-Plus – The July 17 item of FT.com titled “Tajik group files lawsuit against Rusal” says United Company Rusal, the Russian aluminum group preparing to list on the London Stock Exchange, is facing 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.
Tajik Aluminum Company, or Talco, formerly known as TadAZ, 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.
TadAZ sued in London over the alleged fraud two years ago. But the defendants denied any wrongdoing, and Ansol also claimed to have entered a joint venture deal with Rusal over the TadAZ business in 2003.
That, in turn, prompted Ansol to bring a counterclaim against Rusal, alleging there had been an unlawful conspiracy with members of the Tajikistan government aimed at ousting Ansol from the alleged joint venture so that Rusal could take control of TadAZ. This counterclaim is now settled.
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”.
In its press release that was issued today, Rusal says it considers the law suit in BVI by Talco as just another attempt to stray attention from their responsibility in regards to the suits initiated by UC Rusal against TadAZ for $312 million concerning the refusal to make the payment for the alumina shipment supplied to TadAZ. The two suits were filed by two affiliates of RUSAL – Hamer and Albaco – on June 1, 2007, in the arbitration court of Zurich’s Chamber of Commerce and the International Chamber of Commerce.
“The first attempt by TadAZ to initiate a law suit against RUSAL failed. The London High court wholly rejected TadAZ”s attempt to join Rusal into the English litigation,” press release said.
“We should also note that last year TadAZ tried to evade payment of debt as, for instance, in the case of a law suit initiated by Norsk Hydro in 2004. The suit was closed at end of last year after Norsk Hydro received barter agreement debt payment through a court decision,” press release noted.
According to press release, Hamer and Albaco are actively pursuing their claims against TadAZ and expect eventually to be paid in full, together with interest and costs.
In the meantime, representatives from Tajik Aluminum Company have refrained from commenting on this subject.
