OREANDA-NEWS  On 02 October was announced, that the decision of Norilsk Nickel about directing the cash of its subsidiaries to buy back Norilsk Nickel’s shares is a serious violation of corporate governance principles and minority shareholders rights.  Using the imperfections of the Russian legislation and its uncontrolled power over Norilsk Nickel Vladimir Potanin as the Chairman of the Board of Directors and Vladimir Strzhalkovsky, CEO of Norilsk Nickel appointed by Vladimir Potanin, again demonstrated their absolute unwillingness to take into account the interests of other shareholders and eagerness to violate principles of corporate governance to retain full control over the company.  This looks even more cynical given the fact that Vladimir Potanin is the Chairman of the National Council for Corporate Governance in Russia.

Several weeks ago, expecting such developments and getting the signals from the market, UC RUSAL sent a letter to Mr. Strzhalkovsky that it is unacceptable to use the cash of Norilsk Nickel and its subsidiaries without consultations with other shareholders.  However, this letter, as well as many others was ignored.

We strongly disagree with such actions initiated by Vladimir Potanin who uses loopholes in the Russian legislation in the best traditions of 90s seriously violating the rights of the shareholders step by step destroying the value of Norilsk Nickel.