Russian oligarchs look to ex-KGB man in battle for Norilsk

UC Rusal has denied merger talks are being carried about between its chief executive Oleg Deripaska and Norilsk majority shareholder Vladimir Potanin, as the nickel giant eyes former KGB-officer Vladimir Strzhalkovsky as its new chief executive.
Aluminum giant Rusal said in a statement Wednesday that Deripaska was not carrying out "any talks with Vladimir Potanin about a possible merger of UC RUSAL and Norilsk Nickel", adding that no confidentiality agreement had been discussed or signed by the two men.
Rusal said that it considered its 25% stake in Norilsk as a "strategic investment" and that it still intended to pursue "all legal remedies" to protect its interests.
Potanin has been locked in an ongoing battle with Rusal over the control of Norilsk, the world's third-largest nickel producer since Deripaska's company bought a 25% stake in Norilsk in April.
At the company's annual shareholder meeting last month four Interros representatives were voted to Norilsk's board, including Potanin, while only two Rusal representatives, including Deripaska, won seats. The appointment of Strzhalkovsky, a close ally of Russian prime minister Vladimir Putin, would strengthen Interros' hold over the company.
A spokesman for Potanin's investment vehicle Interros spoke to Platts regarding Strzhalkovsky's possible appointment and said: "These negotiations have begun and are ongoing. The final discussion will take place when the board of directors meet on August 8. He is the only candidate that we are putting forward."
The Russian government has previously expressed its wish to create a Russian metals and mining company on the same scale as Anglo Australian mining giant BHP Billiton. Strzhalkovsky, currently head of Russia's state tourism agency, would take over the role of chief executive from Sergei Batekhin who has held the position for less than a month.
The Interros spokesman said that if Strzhalkovsky takes the role of chief executive, Batekhin would become his deputy and look after the day-to-day running of the company.
--Michelle Madsen, michelle_madsen@platts.com