The court banned Rusal from making payments on bonds in Unicredit Bank

The Moscow Arbitration Court, following the application of Ingosstrakh, prohibited the aluminum company Rusal from making payments in favor of the German Unicredit Bank AG on the company’s Eurobonds issued by the Irish subsidiary of Rusal, Rusal Capital DAC. This is stated in the ruling of the court, excerpts from which TASS cites. According to Ingosstrakh, such measures will prevent the withdrawal of money from Russian companies in favor of foreign ones, provided that the bank has unfulfilled obligations to the Russian company and does not intend to fulfill them.

In addition to the ban on payments, the court ordered Rusal to ensure that its affiliates, including RTI Limited and Rusal Capital DAC, do not make payments to Unicredit Bank AG on Eurobonds issued by Rusal Capital DAC.

As a result of the court session, the court fully satisfied the petition of Ingosstrakh, which demanded that measures be taken to secure the company’s claim against Unicredit Bank, which is being considered in the Munich Regional Court. Ingosstrakh pointed to the need to recover interest income from Unicredit Bank and restore the illegally redeemed ruble structural bonds of Rusal or transfer them to the plaintiff and pay interest income on Eurobonds.

United Company Rusal is a Russian aluminum company, one of the world’s largest producers of primary aluminum and alumina. At the end of 2022, it produced 3.835 million tons of aluminum. Over the past year, Rusal accounted for 5.6% of world aluminum production. Rusal’s adjusted net income for January-June 2023 decreased by 54.3% and amounted to $315 million.

Milena Kostereva