OREANDA-NEWS. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUALR/RUALRS), a leading, global aluminium producer, announces that the Company's subsidiary, Hamer Investing Ltd. (“Hamer”), obtained an order dated 28 January 2014 from the Eastern Caribbean Supreme Court in the High Court of Justice of the British Virgin Islands (“BVI”) entering judgment on an arbitration award issued for approx. USD276 million against Tajik Aluminium Company SUE (“Talco”). The arbitration award relates to two barter agreements for the supply of alumina and other materials to Talco, the aluminium smelter located in Tajikistan formerly known as “TadAZ.”

The arbitration award was issued in Hamer's favour by a three-member tribunal sitting in Switzerland in accordance with the International Arbitration Rules of the Zurich Chamber of Commerce. The tribunal held that Talco had breached two barter contracts for the sale-purchase of alumina and other materials, and rejected Talco's counterclaim in its entirety. Talco did not challenge the award in Switzerland, but has refused to comply with the award, thus necessitating enforcement proceedings in the BVI and elsewhere.

Talco's refusal to pay its debt under the award has also compelled Hamer to take other legal actions. Currently pending is an application for discovery of bank records of Talco's dollar-denominated transfers in the United States, as well as an action in the BVI for fraud and conspiracy against Talco and related entities and persons, including CDH Investments Corp. (“CDH”).

CDH, a Talco-related entity, has also refused to comply with a separate arbitration award rendered against it for approximately USD70 million. A court-appointed liquidator is currently tracing CDH's various offshore transactions and money transfers.

We expect these actions in the US and the BVI (and elsewhere) to lead to a network of offshore entities and accounts connected with Talco. As noted recently in The Economist (27 July 2013), “Each year, TALCO produces hundreds of millions of dollars in profits that are routed to a shell company in the British Virgin Islands.”

Hamer is determined to be paid on the award, whether voluntarily or involuntarily, from what appear to be significant resources behind Talco and its affiliates.