Barclays drawn into Russian metals lawsuit
Dominic Rushe
04/22/2001
Sunday Times - London
News International
1GB
Page 2
(Copyright Times Newspapers Ltd, 2001)BARCLAYS BANK could be drawn into a multi-billion-pound legal action in America involving some of Russia's most powerful businessmen and accusations ranging from murder to money laundering .
Russian Aluminium, the world's second largest aluminium producer, is being sued for $2.7billion (Pounds 1.8billion) by three rival metals companies.
An attorney close to the case said a round of subpoenas was being prepared by lawyers building their case against Russian Aluminium. Barclays, along with several other organisations, would be included on the list, he said.
The lawsuit includes accusations of murder, fraud, bribery and money laundering . Russian Aluminium strongly denies all the allegations and has said the plaintiffs are falsifying facts and inventing "trumped-up accusations".
A first round of subpoenas was served last week to some of Europe's biggest banks, including Credit Agricole Suisse, Bank Paribas and Westdeutscher Landesbank. The subpoenas require the banks to give up documents relating to their dealings with the Russian company.
The case is being brought by Base Metal Trading SA, Base Metal Trading Ltd and Alucoal.
They claim they lost $900m when Novokuznetz Aluminium Zavod (NKAV), an aluminium plant in Russia, was declared bankrupt in January 1999.
The case has been brought under the US Racketeer Influenced and Corrupt Organisations Act (RICO), which allows damages in cases involving organised crime to be trebled.
NKAV, Russia's fifth-largest producer of aluminium, was taken over by Sirbirsky Aluminium and eventually became part of Russian Aluminium, which now controls 75% of Russia's aluminium production.
The Russian authorities this month finally approved the huge merger, which created Russian Aluminium, second only to America's Alcoa in the global aluminium industry.
The suit claims Oleg Deripaska, head of Sirbirsky, and Mikhail Chernoi, described in court documents as his business partner, extracted millions of dollars from the collapsed plant and eventually forced it into bankruptcy. In the suit Chernoi is also accused of ordering the murder of Felix Lvov, an American businessman.
Deripaska, 33, is one of Russia's leading businessmen and has recently moved into the motor industry. One of Deripaska's companies controls Gaz, Russia's second largest carmaker, and has bought stakes in other vehicle-makers.
Among the other organisations subpoenaed last week were Kroll Associates, corporate investigators, and First Union National Bank and Bank of New York .
A lawyer close to the case said: "The subpoenaed documents will show Russian Aluminium's lines of credit, as well as who owns what and where the assets are. We are looking at subpoenaing 20 to 30 other entities, from businesses to people, to financial institutions."
Barclays said it could not comment on the case
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