Flash Report / Russia

Nornickel shareholder tensions rise – neutral

  • CEO of Interros, Sergey Batekhin commented on the shareholder conflict situation and Nornickel developments
  • Interros and RUSAL relations have deteriorated; Interros believes RUSAL's dividends focus comes at Nornickel’s expense
  • As long as the shareholder agreement is in place, verbal interventions by major shareholders have no material impact

The CEO of Interros, Sergey Batekhin commented on the shareholder conflict situation and Nornickel developments. Key takeaways:

  1. The Interros and RUSAL relations have deteriorated.

  2. RUSAL overuses its veto right in the Nornickel’s Board of Directors blocking and delaying major projects including Arctic Palladium and Sulfur projects.

  3. Interros believes that RUSAL's focus on dividends comes at the expense of the Nornickel’s growth and environmental projects.

  4. The existing shareholder agreement is in place for 2020 and 2021. Interros will abide current accord.

  5. No talks on the new accord at the moment.

Conclusion: The current shareholder accord regulates dividends payments. Therefore, the dividend payments for 2020 and 2021 are secured. As long as the shareholder agreement is in place, verbal interventions by major shareholders have no material impact on Nornickel's operations and cash flows.


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