OREANDA-NEWS. On 18 August 2008 UC RUSAL, the world’s largest aluminium and alumina producer, announces that it has filed a lawsuit with the arbitration court against LUKOIL, the primary supplier of oil coke to UC RUSAL’s facilities, for disruptions in its supply of raw materials. Since April 2008, LUKOIL has reduced the supply of oil coke to UC RUSAL’s largest aluminium smelters by almost two times and as a result has not been fulfilling its long-term contractual obligations. 

According to the contract signed between the two companies in 2006, LUKOIL is obliged to supply oil coke to UC RUSAL until April 2011. This oil coke is required for the production of anode paste and anodes by UC RUSAL’s aluminium smelters. However, in April this year, LUKOIL decreased shipments, while selling oil coke to other customers and as a result violated the terms of the agreement. UC RUSAL has observed the agreed contract.

As LUKOIL disrupted its contractual obligations and its representatives are not willing to have a constructive dialogue, UC RUSAL believes that the only possible way to resolve the situation and ensure the contract is fulfilled in full is to take legal action.