Yesterday the High Court in London upheld UC Rusal's position in the debate on the abolition of the new rules warehousing policy London Metal Exchange (LME), says the decision of the court.

Since April 1, LME had planned to introduce a new policy works with warehouses on which dispatch from them would have increased by 50%, if the queue to receive the goods from the warehouse is more than 50 days. "The changes could seriously reduce the price of aluminum on the stock exchange and a premium to the market for the immediate shipment of the goods", - says the analyst of Rye, Man & Gor Securities Andrei Tretelnikov. For now, goods exchange can be obtained no earlier than three months, and the average waiting time exceeds 18 months, an indication LME autumn 2013 In addition, from the warehouses of the market would have got a large amount of aluminum that could lead to lower prices metal.

The world's largest aluminum producer is trying to challenge the new rules for storage of metal - they threaten the profitability of the company ...

When making a decision the court held consultations held prior to the adoption of new LME warehousing rules of politics, "dishonest", and the decision itself - illegal. During the consultations LME have alternative proposals, in particular the proposal for the elimination or reduction of rent for warehouse storage of metal had to be considered. According to the decision taken by the LME court decision is subject to cancellation, and exchange must restart consultations and take into account the views of all market participants. Then LME «will be entitled to make the rules, which will satisfy the wishes of all parties," the court ruling.

But the decision of the High Court of London applies only to the formal circumstances change storage rules LME. Exchange spokesman said that the LME is consulting with lawyers to decide on a possible appeal. He adds that 70 meetings with market participants was carriedout before approving strategy and analyzed more than 30 written proposals. Further comment representative of the exchange declined.

"We support measures to ensure a transparent and predictable framework conditions for the aluminum industry", - said the representative of Norsk Hydro. Alcoa spokesman did not respond to the request "Vedomosti", the representationrer Glencore declined to comment.

According to statistics, the satisfaction of such claims - a rare case, the member of UC Rusal board chairman of the Partners' Committee advocates "Egorov, Puginsky, Afanasiev and Partners" Dmitry Afanasiev. According to him, during the trial it was proved that the LME is not complied under English law equitable consultation procedures to be performed by the regulator or the market before making a decision. «UC Rusal offers and other market players were not considered, as has been proved," - this, according to Afanasiev, and determined the outcome of the case.

New rules Exchange Board of Directors approved on November 1st.

Against the decision objected to the largest aluminum producers. CEO and co-owner of the largest UC Rusal Oleg Deripaska then called the new proposal "underdeveloped" and "not supported by appropriate exchange of information." President for metals management unit Alcoa said Tim Reyes exchange plan "counterproductive."

UC Rusal revenues may be reduced because of the newLME policy →

The award - one of the key components of revenues UC Rusal: in the first half of 2013 the cost of 1 ton of aluminum in the company amounted to $ 1911, and with the recent stops five small aluminum plants the company has managed to reduce this figure up to $ 1871. But prices are still lower yesterday on the LME metal cost $ 1685 per 1 ton Through UC Rusal award remains in the black .. After all, in 2013 the average premium to the market (see. Chart) was $ 272 per 1 ton. At the same time UC Rusal produced 3.8 million tons of the metal last year. It turns out that the additional revenue if all its metal was traded at the LME, could reach $ 1.03 billion.

College of Consultant Association "Yukov and partners" Vsevolod Miller is not sure that the LME will go further and will be judged on appeal. The British court rarely retrial leads to a change in the court's decision. Rather LME have to comply and take into account all the views of the participants at the Exchange's policy change with respect to warehouses, sums up Miller.