14.08.2008 10:13
Aug 14. UC RusAl is to file a suit with the arbitration court against Lukoil, Russia's No. 2 oil producer, accusing the oil major of having disrupted oil coke supplies. "Since April 2008 oil short coke supplies have totaled more than 35,000 tons…We've incurred serious additional expenses" – RusAl's spokesman said adding that missing volumes are purchased in China and Azerbaijan. According to the spokesman, Lukoil's deliveries account for over 30% of RusAl's aggregate oil coke purchases, which include supplies to the company's two largest aluminum smelters based in Bratsk and Krasnoyarsk. Lukoil's representative declined to comment. Earlier on Wednesday, RusAl accused Lukoil, its main oil coke supplier, of having cut in half oil coke supplies since April 2008 and of the failure to fulfill obligations under long-term contracts signed in 2006 until 2011. "This April Lukoil reduced deliveries, selling oil coke designated for RusAl's plants to other consumers, thereby breaching contractual relations. Meanwhile, UC RusAl executed all terms of the contracts… Due to the violation of contractual obligations on the part of Lukoil and also the oil company's unwillingness to engage in constructive dialog, UC RusAl finds a lawsuit as the only way to resolve this situation" – RusAl said in a statement. "The market is very narrow in Russia, as there are only four oil coke suppliers in the country" – RusAl's representative said.
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