SEHK : 486


September 15, 2010 11:04 ET

RUSAL Poses Seven Questions to the Management of MMC Norilsk Nickel

MOSCOW, RUSSIA--(Marketwire - Sept. 15, 2010) - UC RUSAL (SEHK:486)(EURONEXT:RUSAL)(EURONEXT:RUAL), the world's largest aluminium producer and owner of a 25% stake in MMC Norilsk Nickel ('MMC'), welcomes the initiative of the management of MMC to publish seven letters to investors of the company. RUSAL intends to take advantage of this opportunity by publicly posing seven important questions to the management, answers to which have never been received by RUSAL's representatives on the Board of Directors in the past two years.

We are confident that objective, complete information on specific topics will be of interest to everyone who cares about the future of Norilsk Nickel – its shareholders, employees, residents of regions where MMC operates, its clients and partners, representatives of the government and expert community, journalists and analysts.

  1. STRATEGY – When will a long-term development strategy for the company (including a program of environmental modernization, organic growth projects and projects for the development of a geological database to replace declining ore content) be developed and finally put to the Board of Directors for consideration?

  2. MARKETING – Why does Norilsk Nickel sells its products at a much lower premium than its competitors, with a large share of metal stocked at LME warehouses, as it was the case in 2009?

  3. PERSONNEL – Why have appointments to key positions in the company made without consultation and debate at the Board of Directors (e.g. the recent appointment of Andrey Klishas to the newly created position of President of the Company), and why does the company not search for senior managers that have relevant experience in the mining and metals industry with the support of leading independent executive search companies?

  4. CORPORATE GOVERNANCE – Why do representatives of management, without being shareholders of the company, vote at shareholders' meeting (using the quasi-treasury shares), effectively using the property of all shareholders to elect management rather than independent representatives to the Board of Directors?

  5. CORPORATE GOVERNANCE – Why does the company's management dispose of property owned by subsidiaries of Norilsk Nickel, without any control or coordination, or even without informing the Board of Directors of MMC Norilsk Nickel of such activities e.g. sale of quasi-treasury shares of MMC Norilsk Nickel from Russian subsidiaries to offshore structures?

  6. ASSET STRIPPING – How can the management of Norilsk Nickel possibly explain the use of funds intended for the OGK-3 investment program, for the purchase of non-core assets at an inflated price? (An example is a 25% minus one share stake at Rusia Petroleum, which is currently about to become bankrupt). Transactions were carried out with the active participation of employees of the parent company of MMC Norilsk Nickel, on the one hand, and of representatives of Interros (Andrey Bugrov, a representative of Interros and Chairman of the Board of Directors of JSC OGK-3 at the time of transaction), on the other hand.

  7. RELATED-PARTY TRANSACTIONS – What is the truth behind various media reports that after V.I. Strzhalkovsky was appointed General Director of OJSC MMC Norilsk Nickel the travel agency "Neva" received most of the orders for servicing of MMC Norilsk Nickel and its affiliated entities, as well as the fact that the travel agency "Neva" is controlled by or is an affiliated company of Mr. Strzhalkovsky?

RUSAL is currently in active communication with the minority shareholders of MMC in the run-up to the extraordinary shareholders' meeting. Unfortunately, many of them have never been given the opportunity to visit Norilsk and therefore had no opportunity to see first hand what the industrial complex represents today.

We have decided to give them such an opportunity by placing a short film demonstrating how the world's leading nickel producer looks today on our 'Save Norilsk Nickel' ( web resource. It can be viewed at

Based on the comments of investors, received at recently held meetings, we are confident that the solution of all these issues is only possible through the formation of a truly independent and professional management team, which will focus on developing the production rather than other activities from their previous work experience, represent the interests of all shareholders and comply with the principles of corporate governance. This is the only way to ensure long-term and effective development of MMC in the interests of all those who care about the company.


UC RUSAL ( is the world's largest producer of aluminium, in 2009 accounting for approximately 10% and 10% of global production of aluminium and alumina, respectively. UC RUSAL employs about 76,000 people in 19 countries, across 5 continents. UC RUSAL markets and sells its products primarily in the European, Japanese, Korean, South East Asian and North American markets. UC RUSAL's ordinary shares are listed on The Stock Exchange of Hong Kong Limited (Stock code: 486) and global depositary shares representing UC RUSAL's ordinary shares are listed on the professional compartment of Euronext Paris (RUSAL for Reg S GDSs and RUAL for Rule 144A GDSs).


The information contained in this press release is for media advice only. The contents are true and accurate at the time of publishing, however, may change over time.

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