Ukraine is confiscating a key alumina plant linked to United Co. Rusal International PJSC and other assets it says are owned by Russian billionaire Oleg Deripaska, under sanctions the government imposed after Russia’s invasion last year.
(Bloomberg) — Ukraine is confiscating a key alumina plant linked to United Co. Rusal International PJSC and other assets it says are owned by Russian billionaire Oleg Deripaska, under sanctions the government imposed after Russia’s invasion last year.
More than 300 assets linked to Deripaska and Rusal have been transferred to the state, Ukraine’s Justice Ministry said in a website statement, citing a decision by the top anti-corruption court on Feb. 16. The Mykolayiv alumina refinery has been offline since early March 2022, after Russia bombed the southern city.
The ministry accused Deripaska of being close to Russian President Vladimir Putin and having “a significant share” of Rusal and parent company En+ Group. It also said Rusal controls some companies in Russia that produce armored vehicles used by that country’s army to fight in Ukraine. Deripaska doesn’t hold controlling stakes in Rusal or En+ after being sanctioned by the US. The aluminum producer didn’t immediately respond to an emailed request for comment.
“The Justice Ministry of Ukraine won’t stop there, but will continue to implement the sanction by confiscating assets of sanctioned people,” Deputy Justice Minister Iryna Mudra said in the statement. “We are doing everything so that the assets of people who support Russia’s aggression will benefit Ukraine’s economy and Armed Forces as soon as possible.”
Rusal, co-founded by Deripaska, acquired the refinery in the early 2000s. It relied on the facility — which could churn out about 1.76 million tons of alumina a year — for more than 20% of the raw material needed for its aluminum factories in Russia. After the site shut this year, Rusal had to look for new sources of supply, including in China and Kazakhstan.
The permanent loss of the Mykolayiv refinery will be a blow to Russia, which has had close ties to the plant ever since it was built more than 40 years ago to address the Soviet Union’s alumina shortfall.
The Ukrainian parliament this year approved legislation to nationalize the assets of Russian citizens, as well as companies in which Russians are beneficiaries. Rusal is controlled by Russia-registered En+ Group, in which Deripaska still holds a stake of about 45%.
(Updates with the ministry comment in the fourth paragraph)
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