Great Britain Fears of Transfer of IPO Rusal from London

Meanwhile UC Rusal so far does not express any preferences. Vera Kurochkina, UC Rusal has reminded the position of the company by saying: “The company’s plans concerning IPO have remained the same: we plan to offer the shares within 3 years since March 2007, the date of the merging”. Mrs. Kurochkina continues saying the company has not yet made any decisions as to more precise terms of offering, amount or the place. Basic Element has not officially commented on information provided by Financial Times.

Viktor Vekselberg, Chairman of Board of Directors for the first time announced a possibility of IPO of UC Rusal shares in October 2006. In spring2007 he noted that the shares of the aluminium holding would be offered no later that November. IPO was supposed to take place in London. Yet already in autumn Mr. V. Vekselberg referring to an unfavorable situation in the market announced IPO delay sine die. As it was reported last summer, the amount of UC Rusal offering may reach up to 25% of its shares.

UC Rusal is one of the largest producers of primary aluminium (12.5% of the world market) and alumina (16% of the world market). Oleg Deripaska’s Basic Element structures control 66% of the company’s stake, 22% belong to Viktor Vekselberg’s structures, 12% — Glencore, Switzerland. In January—September 2007 the company produced 3.1 mln tons of aluminium and 8.5 mln tons of alumina. According to the company’s top management estimation, an annual turnover of the company may reach about $12 bln.