Wednesday, Aug. 8, 2001.
New Details in RusAl Murder Suit
By Torrey Clark
Staff Writer Citing new details from a "financial insider," a group of
companies has filed expanded charges in New York against Russian Aluminum
and its chief executive, Oleg Deripaska, accusing him of fraud, money
laundering, extortion and complicity to murder.
The plaintiffs are seeking a revised $3 billion for the damages incurred
during the takeover of several prized metals assets over the last several
years that led to the consolidation of the aluminum industry and the
creation of Russian Aluminum, now the worlds second-largest aluminum
producer.
The new charges, filed late Friday, are amendments to the original $2.7
billion lawsuit filed in late December.
New details in the amended suit filed Friday center mainly on testimony from
Dzhalol Khaidarov, described as the former financial manager and close
associate of Mikhail Chernoi and Iskander Makhmudov, alleged to be
Deripaskas associates in the "conspiracy" to illegally acquire Russias
major aluminum-making and other metals assets.
The plaintiffs, including Base Metal Trading, Alucoal Holdings and the
Russian company Mikom, are seeking triple damages under U.S. racketeering
laws. They are claiming $900 million in losses from the false bankruptcy of
the Novokuznets aluminum factory, or NKAZ, and $100 million from the
takeover - "through pure physical force of armed thugs, bribery [and]
extortion" - of the Kachkanar vanadium-mining complex, or GOK, both of which
are now controlled by Russian Aluminum, or RusAl.
Mikhail Zhivilo, the former head of Mikom and director and major shareholder
in NKAZ, is currently in France. He was arrested in Paris earlier this year
as part of an extradition request from Russia, but was later released. He is
accused of planning the assassination of Kemerovo Governor Aman Tuleyev.
Khaidarov was ousted as GOKs general director in an armed takeover in
January 2000. Chernoi, who is currently under house arrest in Israel on
money-laundering charges, and Makhmudov are plaintiffs, as is Moscows
powerful MDM Bank, which the lawsuit alleges is controlled by Makhmudov.
"Makhmudov, Deripaska and MDM Bank . are directly involved in the laundering
of funds through banks in the United States which are ultimately converted
to cash and used for, among other things, bribes in Russia as described
herein," the plaintiffs allege.
Both RusAl and MDM deny the charges. On Tuesday, an MDM spokesman said
Makhmudov has no involvement in the bank. MDM head Andrei Melnichenko told
Expert magazine in June that although Makhmudov held a stake in MDM through
his company Urals Metals and Mining Plant for a short period starting in
1994, "since the end of 1996, no companies belonging to Makhmudovs group
have been among our shareholders."
Listed among "defendants and related persons" in the 69-page complaint is
"the Chubais team." The plaintiffs contend that in 1999, Anatoly Chubais
ordered Zhivilo to cooperate with "the conspirators" in their efforts to
consolidate the aluminum industry.
Chubais also allegedly told Zhivilo that he was responsible for Tuleyevs
appointment as governor of Kemerovo, where the prized Novokuznets aluminum
factory is located. Chubais allegedly then told Zhivilo that if he didnt
follow instructions he would have Tuleyev transfer control of NKAZ to
Deripaska and Makhmudov "by whatever means necessary."
The plaintiffs allege that the defendants paid $3 million to Tuleyev to fix
the local court proceedings to bankrupt NKAZ and to frame Zhivilo. They also
allege that Deripaska, Chernoi and Makhmudov paid $850,000 in "campaign
contributions" to Eduard Roussel, governor of Sverdlovsk, where GOK is
located, in exchange for helping the defendents take over GOK.
The suit also names U.S. companies as "victims of the conspiracy," including
Alcoa, the worlds largest aluminum company, Reynolds Aluminum Co., now part
of Alcoa, and Transworld, which Chernoi helped found.
Alcoas and Reynoldss attempts to buy a controlling stake in the Bratsk
aluminum plant in 1998 failed when RusAl took over the plant. At the time,
U.S. Treasury Secretary Paul ONeill was Alcoas CEO and board chairman.
The Moscow Times
