RUSAL seals USD 0.36 million heat-system link-up with Baikalenergo; connected-transaction cap set at USD 16.48 million for FY2026

Bulletin Express
Oct 06

United Company RUSAL (00486) disclosed that its subsidiary, RUSAL Taishet Aluminum Plant LLC, signed a Connection of Heat System Contract on 5 October 2026 with JSC Baikalenergo, an associate of substantial shareholder EN+ Group. The agreement covers technological connection to regional heating networks to supply a new 270-child preschool facility in Taishet.

The two-year contract carries estimated consideration of USD 231,157 for FY2026 and USD 124,469 for FY2027, exclusive of VAT. Payments will be phased: 15 % within 15 days of signing, 50 % within 90 days or before actual connection, 20 % upon initial energy supply during commissioning, and the remaining 15 % within 15 days of the final connection act. Pricing is based on an Irkutsk regional tariff order (No. 79-56-SR, 6 March 2026) and complies with Russian federal heat-supply regulations.

Aggregated with three previously announced connection-related agreements, the annual transaction caps with EN+ associates are approximately USD 16.48 million for the year ending 31 December 2026 and USD 0.29 million for 2027. These amounts exceed 0.1 % but remain below 5 % of the applicable percentage ratios under Hong Kong Listing Rule 14A, requiring disclosure but not independent shareholders’ approval.

RUSAL stated that the contract was awarded to Baikalenergo through an open tender on the TenderPro electronic platform, where the contractor submitted the sole compliant bid and is the exclusive regional provider of such services. Directors consider the terms to be on arm’s-length, normal commercial conditions and aligned with prevailing market prices.

Internal safeguards include an automated monitoring system for connected transactions, designated curators within business units, oversight by the Directorate of Compliance and Corporate Governance, and annual external-auditor reviews to ensure adherence to Listing Rules and that aggregate caps are not breached. Except for Director Vladimir Kolmogorov—also an executive at EN+ entities—all board members approved the transaction.

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