Sual may break monopoly in Russian aluminium market through production sharing deal
MOSCOW, Oct 15 (Reuters) — Russia's Sual could break the monopoly of its partner Rusal in the domestic aluminium market for the first time in almost 20 years, gaining access to the metal's output through a production sharing agreement announced on Thursday. Rusal, earlier controlled by billionaire Oleg Deripaska, gained its monopoly position through a mega-merger in 2007 and has since been the sole producer and exporter of primary aluminium in Russia. Sual, owned by billionaire Viktor Vekselberg, said it had signed the agreement with state-controlled hydropower producer RusHydro, which co-owns the Boguchany aluminium smelter in Siberia and a power station supplying it with Rusal. The agreement will provide Sual with access to up to a 50% share of the smelter's output, equal to 150,000 metric tons of aluminium. The company said it would target foreign and domestic markets with its aluminium. This would put it into direct competition with its partner Rusal. Rusal did not immediately respond to a request for comment. In July, Russia's antimonopoly watchdog accused Rusal of selling its aluminium to domestic customers at higher prices than it charged for exports and issued a warning. Su
MOSCOW, Oct 15 (Reuters) — Russia's Sual could break the monopoly of its partner Rusal in the domestic aluminium market for the first time in almost 20 years, gaining access to the metal's output through a production sharing agreement announced on Thursday. Rusal, earlier controlled by billionaire Oleg Deripaska, gained its monopoly position through a mega-merger in 2007 and has since been the sole producer and exporter of primary aluminium in Russia.
Sual, owned by billionaire Viktor Vekselberg, said it had signed the agreement with state-controlled hydropower producer RusHydro, which co-owns the Boguchany aluminium smelter in Siberia and a power station supplying it with Rusal. The agreement will provide Sual with access to up to a 50% share of the smelter's output, equal to 150,000 metric tons of aluminium. The company said it would target foreign and domestic markets with its aluminium. This would put it into direct competition with its partner Rusal.
Rusal did not immediately respond to a request for comment. In July, Russia's antimonopoly watchdog accused Rusal of selling its aluminium to domestic customers at higher prices than it charged for exports and issued a warning. Sual said the agreement would ensure that prices for aluminium were transparent. (Reporting by Anastasia Lyrchikova; Writing by Alessandra Prentice; Editing by Alison Williams) ((alessandra.prentice@tr.com)