Sual Partners Attempts to Block Rusal Share Buyback

Sual Partners, controlled by Viktor Vekselberg and his partners, is seeking to prevent the proposed buyback of UC Rusal shares. According to Vedomosti, UC Rusal is pursuing the buyback to capitalize on its share of the asset in the absence of dividend payments.

UC Rusal's main shareholder, En+, founded by Oleg Deripaska, holds a 56.9% stake in the company. Sual Partners owns 25.5%, with the remaining 17.6% of shares publicly traded.

In May, Interfax sources reported a possible buyback, though specific details were not disclosed. Under current regulations, if UC Rusal repurchases shares and holds them on its balance sheet, they are classified as treasury stock, which is deprived of voting rights and dividends. These shares must eventually be redeemed or sold. However, if the shares are held by a subsidiary, they become quasi-treasury stock, which can still be voted on by management, effectively bolstering the position of the controlling shareholder.