According to Kommersant, the Arbitration Court of Kaliningrad Region in Russia, after closed-door proceedings, has ruled in the dispute between Rusal (00468.HK) and Rio Tinto (RIO.US), deciding in favor of Rusal, ordering Rio Tinto to pay $1.278 billion, and permitting enforcement measures against a 66% stake in Oyu Tolgoi LLC. The ruling has been upheld on appeal.
Rusal stated that if the Russian court judgment is ultimately recognized and enforced in Mongolia, part of Rio Tinto's stake in the OT copper mine could be auctioned, with the proceeds used to pay the compensation. At present, the ruling does not mean the relevant equity has actually been transferred.
On the procedural front, Rio Tinto's subsidiary RTA Holdco Australia 5 is appealing to a Russian cassation court. In addition, the court accepted on September 15 a succession application in litigation proceedings by JSC Selena-M, indicating that Rusal may have transferred the relevant claim rights or judgment debt to that company.
The lawsuit stems from a dispute over the Queensland Alumina Limited (QAL) alumina refinery in Australia. The plant has an annual output of approximately 3.7 million tons, with Rio Tinto and Rusal holding 80% and 20% stakes respectively, operating under a toll-processing model in which shareholders supply bauxite and draw alumina according to their equity interests. After Australia imposed sanctions on Russia in 2022, QAL stopped processing for Rusal, and Rio Tinto intervened and took over 100% of capacity, triggering litigation between the two sides.
Rio Tinto said that Rusal filed a lawsuit over the same dispute in Australia in 2024, and the local court determined that Rio Tinto and QAL acted in accordance with the international sanctions regime. The Russian court ruling is clearly at odds with the earlier Australian judicial outcome.
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