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Russia’s Rusal launches legal action against Rio Tinto over alumina refinery-report -Breaking

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© Reuters. FILEPHOTO: A board at St. Petersburg International Economic Forum 2017 in St. Petersburg (Russia) June 1st 2017 shows the logo of Rusal, a Russian producer of aluminium. REUTERS/Sergei Karpukhin/File Photo

SYDNEY. (Reuters). Russian aluminium producer Rusal launched legal action against Rio Tinto. (NYSE:) The suit seeks to recover its 20% share in the alumina produced by a Queensland jointly-owned refiner.

Rusal claimed Rio did not have the right to fully control Queensland Alumina Ltd (OTC:) Ltd, (QAL) in response to Australia’s sanctions against Russia for its actions in Ukraine. The Australian newspaper reported that Rusal made this claim citing documents at the Australian Federal Court.

Rio did not comment while Rusal couldn’t be reached at the moment.

QAL is an joint-venture alumina refinery located in Gladstone, Australia’s Queensland. Rio holds 80%, and Rusal (the world’s 2nd-largest producer of aluminium) the remainder.

Rusal claimed Rio had invalidly activated contractual provisions for QAL to be taken over, effectively stripping it of its share of QAL’s output, which is estimated at 750,000 tonnes each year.

Rio cut Rusal’s production access and management of the refiner in April under an Australian ban on exporting alumina ores and aluminium to Russia.

Oleg deripaska, a Russian billionaire who was also the former president Rusal of Russia, was also sanctioned. Deripaska holds an interest in the refinery.

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