Rusal files a request for arbitration against Ukraine

The arbitration relates to Ukraine’s expropriation of the Zaporozhe Aluminium Plant (ZAlK). It is being conducted under the auspices of the International Centre for the Settlement of Investment Disputes (ICSID), part of the World Bank and headquartered in Washington, D.C.

Ukraine was first given notice of the ICSID arbitration in December 2015, whereupon the parties engaged in pre-arbitration settlement negotiations as provided by treaty. The parties having been unable to reach an amicable settlement, negotiations were terminated in August 2016.

Ukraine’s hostile actions have recently expanded to include sanctions specifically targeting persons and Rusal companies related to ZAlK. The ostensible basis for the sanctions is that the targeted persons and companies pose a threat to Ukrainian security. This is not true. The sanctions are in fact direct retaliation for the Rusal’s attempt to protect ZAlK from expropriation by initiating the ICSID arbitration procedure.

Rusal expects its subsidiaries’ position to be fully vindicated by the arbitral tribunal.