“Rusal” will take its toll
Is there a looming battle between Vladimir Potanin and Oleg Deripaska's Rusal over Norilsk Nickel?
The High Court of London has made initial decisions in Rusal's lawsuit against Vladimir Potanin and Whiteleave Holdings Limited, an official report explains.
Both parties own shares in Norilsk Nickel.
What does Rusal want? They want Vladimir Potanin to step down as the managing partner of Norilsk Nickel and compensate for losses.
This story didn't start recently.
The lawsuit is part of the conflict between the Norilsk Nickel owners. The shareholder agreement expired, leading to disputes over dividends and investment priorities for MMC, a publication mentions.
Kommersant reported that the court halted the process temporarily last autumn. Defendants were given time to hire UK Financial Sanctions Authority licensed lawyers. It's worth noting that Vladimir Potanin is under sanctions.
Moreover, the defendants are obligated to not decrease their share in Norilsk Nickel without prior notice to Rusal, the publication notes.
Dmitry Dedov, a senior adviser at Ingvarr law firm, commented on the proof of losses situation.
He believes it's crucial to demonstrate losses for Norilsk Nickel and subsequently for Rusal as its shareholder. However, management may be protected if they showed due caution. Additionally, even if losses are recognized, they would be compensated to Norilsk Nickel, not Rusal, he explained.
Some experts view the court decisions as a victory for Rusal.
background
Rusal initiated a lawsuit against Vladimir Potanin and Whiteleave Holdings Limited last fall in the High Court in London.
Rusal's claims are related to Mr. Potanin’s alleged failure in fulfilling duties as a managing partner in PJSC MMC Norilsk Nickel, resulting in significant losses for Norilsk Nickel and its shareholders.
The company argues that the Norilsk Nickel head should be an independent leader with the necessary professional skills and is also pursuing damages.
Rusal stated that they attempted to negotiate with Potanin for an out-of-court settlement, but to no avail.
It appears that only the court will handle the situation now.
