Russian court rules in favour of Rusal in $1.32 billion lawsuit against Rio Tinto
The legal battle between Rusal and Rio Tinto over a joint alumina refinery in Queensland, Australia, has taken a new turn with a Russian court ruling in favor of Rusal in a 104.75-billion-rouble ($1.32 billion) lawsuit against Rio Tinto. The court documents revealed that the lawsuit was heard in a closed session, and the details of the ruling have not been disclosed.
The dispute stems from Australia’s imposition of sanctions on Russia following its military campaign in Ukraine in 2022. As a result of the sanctions, Rio Tinto took sole control of the Queensland Alumina Ltd (QAL) plant, sidelining Rusal and cutting off its access to the refinery’s output. Rio Tinto now owns 80% of the refinery, while Rusal sought to restore its rights to a 20% stake in the plant through legal action.
In response to the export ban on alumina from Australia and the suspension of operations at a refinery in Ukraine, Rusal has been forced to seek alternative sources of supply. The company has turned to China and other countries to feed its Siberian aluminium smelters, with plans to gradually acquire up to a 50% stake in an alumina plant in India by 2025. Additionally, Rusal announced plans to build a new 4.8-million-ton alumina plant in Russia’s Leningrad region by 2028.
Despite the challenges posed by the legal dispute and geopolitical tensions, Rusal is strategically diversifying its supply chain to ensure continuity of operations. In 2023, the company acquired a 30% stake in a Chinese alumina refinery to support feedstock from its assets in Russia, Ireland, Jamaica, and Guinea.
The ruling in favor of Rusal in the lawsuit against Rio Tinto is a significant development in the ongoing legal battle between the two companies. It underscores the complexity of international business disputes and the importance of legal frameworks in resolving conflicts between global corporations. The outcome of this case will have implications for the future of the alumina industry and the strategic positioning of key players in the market.
(Reporting by Anastasia Lyrchikova in Moscow. Additional reporting by Clara Denina in London. Editing by Mark Potter)
