LME Losses Court Case Brought By Rusal
Rusal alleged that the consultation conducted by LME was unfair and procedurally flawed, that the LME’s decision to make the announced changes to its warehousing policy was flawed, and that Rusal’s human rights were thereby breached.
The hearing of the judicial review claim took place on 26 and 27 February 2014, and judgment was handed down on 27 March 2014. Although the court found in the LME’s favour on nearly all substantive and procedural points raised by Rusal, and made no adverse comments on the substantive merits of the proposed changes to its warehousing policy,the court found in favour of Rusal on one specific procedural issue, that the consultation should have encompassed or made reference to the option of banning or capping rent in queues. The court recognised the LME’s interest in taking action to manage the queues in accordance with its obligation to maintain an orderly market and ensure the integrity of its price discovery function.
LME continues to believe that Rusal’s complaint was without merit in its entirety and is currently taking legal advice with regard to its options, including appeal or re-consultation. Accordingly, the implementation of the linked load-in load-out rule change will not take place on 1 April 2014 as previously scheduled. However, the other measures in the package of reforms announced on 7 November 2013 will continue to be implemented as planned. LME will issue further information to the market in due course.
The Company will update shareholders and investors on any further developments in compliance with Part XIVA of the SFO and Rule 13.09 of the Listing Rules.