The problems between the two current biggest shareholders of the company Interros and RUSAL came to the forefront after the June 2010 annual meeting of shareholders.

According to Vladimir Potanin, the director of the Interros group, there are no points of contention between the shareholders of Norilsk Nickel. “There are only different approaches,” Mr. Potanin is reported to have said. Potanin has said that he is perplexed by the statements of RUSAL’s management that the company does not have enough power. “It may be necessary to look at what individuals want to have those powers,” the Russian tycoon said at the end of August 2010. “Those of our colleagues that still have their own issues to resolve must tackle their problems first before giving advice to others,” Potanin said, referring to the debt load RUSAL acquired after its initial public offering (IPO).

Interros is not planning to sell the stake in Norilsk Nickel that it currently holds back to the Russian metallurgy giant. Potanin stated that RUSAL announced earlier that the company had no plans to sell its share of Norilsk Nickel. At the same time, Mr. Potanin believes that if his counterparts at RUSAL would offer the buyback option, Interros will be prepared to negotiate.  

Meanwhile, Oleg Deripaska, the director of RUSAL stated that his company plans to start talks with minority owners of Norilsk Nickel in regards to conducting repeat election of the company’s board of directors. The company has claimed it wants for the majority of directors to be independent. According to Mr. Deripaska, the company will talk with minority owners and with the holders of Norilsk Nickel’s American Depositary Receipts to obtain written consents for conducting the reelection of the board.

Both Mr. Potanin and Mr. Deripaska agree that there is no need for Norilsk Nickel to solicit a third major shareholder.

The problems between the two current biggest shareholders of the company Interros and RUSAL came to the forefront after the June 2010 annual meeting of shareholders, where RUSAL’s management could not get as many of its nominees to the company’s board as it planned.

At the end of August, Russia’s Prime Minister Vladimir Putin publically stated that the government will not be involved in resolving the crisis between the major shareholders of one of the largest Russian metallurgy companies.  Mr. Putin said that it was of no significance to him what shareholder will own the controlling stake in the company. Russia’s Deputy Prime Minister Igor Sechin has confirmed the official government position, saying that since the main shareholders are working to settle their difference, the state will not interfere with intra-corporate problems. According to Sechin, the apparent conflict between Deripaska and Potanin has not reflected negatively on the social situation in the city of Norilsk or the economic condition of Norilsk Nickel.   

MMC Norilsk Nickel (Mining and Metallurgical Company) is a nickel and palladium mining and smelting company. Its largest operations are located in the Norilsk-Talnakh area in northern Russia. Norilsk Nickel is headquartered in Moscow and is the world’s leading producer of nickel and palladium. The company is also active in the production of platinum, copper, and cobalt. It is ranked among the top four world platinum producers, in association with subsidiary Stillwater Mining Company of Billings, Montana. It is ranked among the top ten copper producers.

The company is listed on NASDAQ and the RTS Stock Exchange. The key shareholders are Vladimir Potanin’s Interros and Oleg Deripaska’s RUSAL, each owns 25 percent of the shares.

Mining began in the Norilsk area in the 1920s. The government of the U.S.S.R. created the Norilsk Combine in 1935 and passed control to the NKVD at that time. In 1943 Norilsk produced 4 thousand tons of refined nickel and in 1945 hit the target figure of 10 thousand tons.