Salem Radio Network News Wednesday, August 10, 2022


Russia’s Potanin ready to discuss possible Nornickel-Rusal merger

(Reuters) -Russian businessman Vladimir Potanin, the largest shareholder at Nornickel, is ready to discuss a possible merger of the mining giant with aluminium producer Rusal amid Western sanctions, he said in an interview with RBC TV.

The Western sanctions imposed on Moscow since it sent troops into Ukraine on Feb. 24 have not targeted Nornickel. However, Britain last week announced sanctions on Potanin.

The need to diversify its shareholder structure to resist sanctions, the potential need for state support for projects in Russia and the global green agenda are among the reasons to discuss the merger, Potanin told RBC TV.

The proposal came from the management of Rusal, he added.

Rusal did not immediately reply to a Reuters’ request for comment.

“I sent a letter today confirming our agreement to start the process of discussing the merger with Rusal,” Potanin said. RBC added that the interview was done on Monday.

Nornickel is the world’s largest producer of palladium and refined nickel. Rusal is the world’s largest aluminium producer outside China.

Potanin, 61, is Nornickel’s largest shareholder with a 36% stake and he has been its chief executive for 10 years. Rusal currently owns 26% at Nornickel.

Rusal bought its stake in Nornickel in 2008. Since then, shareholders at Nornickel and Rusal have been involved in several disputes over management of the mining giant, the size of its dividend payments and investment.

(Reporting by Reuters; editing by Jason Neely and Ed Osmond)


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