Tajik Aluminum sues Russia's UC Rusal

Russian Aluminum giant United Company Rusal, which is preparing for an IPO this year, is being sued in the British Virgin Islands by Tajik Aluminum Co., or Talco, for allegedly defrauding it of millions of dollars, the Tajik company said Wednesday. In a statement, Talco alleged that UC Rusal director Alexander Bulygin took advantage of a corrupt relationship between a Tajik businessman and a manager at Talco to defraud the company in the course of supply and purchase arrangements. An article published by the Financial Times said that Rusal's main shareholder, Oleg Deripaska, was also targeted in the suit. UC Rusal issued a statement saying it "categorically denies all charges filed." Rusal said it has its own litigation for $312 million pending against Talco in arbitration tribunals in the Zurich Chamber of Commerce and the International Chamber of Commerce. A number of Rusal's former partners have litigated against the company in various jurisdictions over the last few years. Most of the suits have either been thrown out or have ended in out of court settlements. Rusal's board is due to consider a timeline for an initial public offering in London later this year.