Ukraine’s top anti-corruption court ruled to confiscate a key alumina plant linked to United Co. Rusal International 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 may be seized, the Justice Ministry said in a website statement, citing the February 16 decision. The Mykolayiv alumina refinery has been offline since early March 2022, after Russia bombed the southern city.
The ministry accuses 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.
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%.