A Russian court has ruled in favor of aluminium producer Rusal, awarding the company a staggering 104.75 billion roubles ($1.32 billion) from mining behemoth Rio Tinto. The closed-session verdict escalates a bitter showdown sparked by Australia’s sanctions on Russia.
The ruling delivers a financial blow to Rio Tinto, potentially forcing payouts despite the company having no direct assets in Russia. Observers note the clever targeting of Rio subsidiaries linked to a lucrative Mongolian copper-gold mine, turning a distant friendship into a legal leverage point.
This home-field advantage for Rusal comes after a stinging defeat in Australian courts, where efforts to reclaim a 20% stake in the Queensland Alumina refinery fell flat.
Back in 2022, Australia banned alumina exports to Russia amid the Ukraine conflict.
Rio Tinto, owning 80% of the Queensland plant, promptly assumed full control, politely but firmly showing Rusal the door.
Rusal, suddenly short on its usual supply, scrambled for alternatives like a shopper hunting bargains during a sale.
The company turned to China for extra feedstock in 2022.
By 2023, it snapped up a 30% stake in a Chinese refinery.
This year, Rusal announced plans to gradually build up to 50% ownership in an Indian alumina plant.
And looking ahead to 2028, a brand-new 4.8-million-ton facility is slated for Russia’s Leningrad region.
All this diversification keeps Siberian smelters humming, proving that when one refinery door closes, several others mysteriously open elsewhere.
The lawsuit itself remained shrouded in secrecy, heard behind closed doors.
Details? Scarce as comments from the parties—Rusal declined, Rio was unavailable.
Yet the inclusion of Rio’s Mongolian assets as defendants raised eyebrows.
Mongolia, dubbed “friendly” by Moscow and notably sanction-free, suddenly found its copper-gold deposit in the crosshairs.
Rio Tinto, meanwhile, must now contemplate how a refinery in sunny Queensland led to a chilly multibillion-rouble bill from Moscow.
The legal saga highlights how sanctions can boomerang across borders.
One side loses access to alumina; the other potentially loses a chunk of change.
Rusal’s pivot to Asia and beyond shows remarkable adaptability in the face of supply squeezes.
Who knew aluminium production could involve such globe-trotting drama?
As appeals loom and enforcement questions swirl—given Rio’s lack of Russian assets—the mining world watches closely.
This case serves as a shiny reminder that in global business, partnerships can tarnish quickly under political heat.
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