Norilsk Nickel Shareholder Agreement

„As a major shareholder in Norilsk Nickel since 2008, Rusal has done everything in its power to obtain maximum dividends after failing to break the dividends. Rusal holds back on its own financial indicators, which remain gloomy when presenting claims to the Norilsk Nickel team. According to IFRS data, Rusal`s operating costs have increased by more than 30% over the past five years and EBITDA has increased from US$2 billion to less than US$1 billion in 2019 over the same period, despite consistent cost-cutting reports,“ he added. In 2007, Norilsk acquired a wide variety of mining and metallurgical products abroad and became a multinational company with subsidiaries in Australia, Botswana, Finland, Russia, South Africa and the United States. The key agreement was reached on June 28, 2007, when Norilsk Nickel acquired approximately 90 per cent of Canada`s LionOre Mining International Ltd, then the world`s tenth largest nickel producer. The $6.4 billion acquisition is the largest overseas acquisition by a Russian company, making Norilsk Nickel the world`s largest nickel producer. [11] [12] Vladimir Potanin, the company`s largest shareholder, stated that the agreement on dividend distributions had taken its course. The stage comes when Nornickel reacts to the consequences of a massive oil spill in the Arctic. „Dependence on norilsk Nickels dividends is the main reason Rusal again rejected Interros` proposal to reduce dividends. Interros views Rusal`s recent public announcements as an attempt to exploit the fuel spill situation and pressure Norilsk Nickel to enter into a new shareholders` pact that would guarantee Rusal the maximum distribution of dividends,“ the statement said. A years-long struggle between Potanin and Rusal`s founder, Oleg Deripaska, for control of Norilsk and its lucrative dividend was put into a turbulent stalemate in 2012 by a Kremlin-brokered deal. As part of the deal, businessman Roman Abramovich bought a minority stake in the company, but then agreed to sell 4% to Potanin, reigniting the dispute. In 2019, it was reported that the group`s total environmental protection expenditure had increased by 117.9%.