Egorov Puginsky Afanasiev & Partners has announced that it has worked closely with Macfarlanes in that firm's successful representation of Russian metal giant Rusal's claim against the London Metal Exchange at the English High Court of Justice over new rules governing metals warehouses.
Mr. Justice Philips agreed with Rusal's contention that the LME improperly failed to consult over alternatives to a new rule it imposed regarding the amount of metal a company can "load-in" and "load-out" of a warehouse, which could be expected to result in a fall in the price of aluminum. Despite finding for Rusal, Justice Phillips rejected the company's claim that the LME had been biased in the way it consulted and implemented the new rule.
Rusal CEO Oleg Deripaska said of the ruling that: “We welcome this decision by the High Court and look forward to working closely with the LME, and indeed all key stakeholders, to ensure that the revised consultation period and subsequent rule changes serve to increase the integrity of price discovery and transparency across the market, which we believe are the key issues continuing to face the sector.”
For its part, the LME issued a statement expressing its disappointment in the decision, but announcing that the disputed rule would not be implemented on April 1 as planned, although other new rules affecting metals warehouses would come into effect on that date. It also indicated that it was consulting and considering the possibility of "appeal or re-consultation."
EPAM Chairman Dimity Afanasiev and Partner Robin Wittering provided assistance to Macfarlanes Partners Simon Nurney and Senior Counsel James Popperwell. Bryan Cave Partner Paul Hauser advised Rusal as well.