Rusal recordsdata lawsuit in opposition to Rio Tinto over actions at Gladstone refinery following Australia sanctioning Russia

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Russian aluminium producer Rusal has filed a lawsuit in opposition to world miner Rio Tinto, in search of to win again entry to its 20 per cent share of the alumina produced at a collectively owned refiner in Queensland.Key factors:Australia banned the export of alumina and aluminium ores to Russia in MarchRio Tinto stepped in and took sole management of the Gladstone refinery in April Russian aluminium producer Rusal argues Rio was in breach of its obligations by taking controlThe lawsuit challenges Australia’s response to Russia’s invasion of Ukraine, which incorporates wide-ranging sanctions in opposition to two Russian oligarchs with hyperlinks to a Gladstone aluminium refinery. Queensland Alumina Restricted (QAL), in Gladstone, is a three way partnership between Rio Tinto, which owns 80 per cent of the product produced there, and Russian firm Rusal, which owns the remaining 20 per cent.However in April, Rio stepped in to take sole management of QAL, sidelining Rusal and reducing its entry to the refinery’s output of alumina, a compound from which aluminium is derived. Rusal’s Australian unit, Alumina and Bauxite Firm, stated in an Australian Federal Court docket submitting that the circumstances required for Rio to step in and take management didn’t exist and its actions amounted to a breach of obligations. The QAL refinery in Gladstone operates on an 80:20 break up between Rio Tinto and Rusal. (ABC Capricornia: Tobi Loftus)Rio’s transfer at QAL got here shortly after the world’s greatest iron ore miner severed all ties with Russian companies over Moscow’s invasion of Ukraine. Australia banned the export of alumina and aluminium ores, together with bauxite, to Russia in March.Within the court docket filings reviewed by Reuters, Rusal’s subsidiary asks the federal court docket to revive its rights at QAL and declare there can be no breach of sanctions if its enterprise continues there.Rio declined to remark.Rusal, the world’s second largest aluminium producer, couldn’t be instantly reached for remark outdoors regular enterprise hours.Rusal was circuitously focused by Australian sanctions, however Rio’s actions had been triggered by sanctions on oligarchs Oleg Deripaska and Viktor Vekselberg, who personal stakes value 25.6 per cent and eight per cent respectively in Rusal.In 2018 Rusal was coated by US sanctions in opposition to Russian businessmen and corporations.Reuters

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