Moscow, Friday, 3 October.  RUSAL, one of the world’s leading aluminium companies, today announced a change in its ownership structure. Shareholder Basic Element will acquire a further 25% stake in the company from the core shareholders in Sibneft, increasing Basic Element’s shareholding to 75%.  The core shareholders in Sibneft will retain a 25% interest.  The financial details of the transaction are confidential.

The change in shareholder structure will not affect RUSAL’s strategy, management or investment program. The management team is still focused on building the company to double its production capacity within a decade, through a combination of increased productivity at existing facilities, new facilities and acquisitions.

The Sibneft-related shareholders will relinquish all representation on the RUSAL board, to be replaced by Basic Element representatives. Basic Element, which is wholly owned by current RUSAL CEO Oleg Deripaska, manages private equity investment funds specializing in strategic investment in promising sectors of the Russian economy. It has extensive investments in the steel, automotive, energy and timber industries, as well as finance and insurance.
 
It is intended that Mr. Deripaska will become chairman. Alexander Boulygine, current COO, will be named CEO.  The company reaffirmed a previously-expressed intention of considering a Eurobond issue within a one- to three-year timeframe and a possible public flotation at a later stage.

Mr. Deripaska said the changes were unlikely to lead to any significant changes to RUSAL’s highly successful management approach in the foreseeable future. “While both the original partners in RUSAL contributed management personnel three years ago when we formed, all have become purely RUSAL people, to be joined by many others we have recruited from Russia and abroad,” he said.

“RUSAL’s management team has created financial reporting and management accountability systems designed to support prudent oversight by our board. RUSAL will continue to maintain and improve these systems, even with one controlling shareholder, because they have proven vital to the management of one of the world’s largest metals companies and helpful in reporting to our lenders and bond investors.” 

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About RUSAL
RUSAL, a world leader in aluminium production, was formed in March 2000 from the merger of a number of the largest smelters and other aluminium producers located in the CIS. The company accounts for 75% of Russia's primary aluminium output and 10% of the global primary aluminium output. RUSAL is a fully vertically integrated company with a complete production cycle from bauxite mining and the production of raw materials, to the production of primary metal, semi-products and aluminium-based end products. RUSAL is headquartered in Moscow.

For further information:
www.RUSAL.com
Eugenia Harrison, Moscow, +7 095 720 5170, or zharrison@RUSAL.ru; Fred Harrison, London, +44 (0) 20 7431 7517, or fharrison@ansdellconsult.com; Stan Neve, New York, +1 212 333 3810, or sneve@brunswickgroup.com