United Company RUSAL announced plans to renew its framework governing electricity, capacity and ancillary-service procurements from En+ Group associates, proposing annual caps of USD 2.81 billion for 2027, USD 2.95 billion for 2028 and USD 2.98 billion for 2029 (all net of VAT, converted at forecast RUB/USD rates).
The new three-year ceiling, lodged in an amendment to RUSAL’s 2019 master agreement with controlling shareholder En+, covers five categories of “continuing connected transactions”: 1) long-term electricity and capacity (E&C) contracts, including 12 recently-signed “Green Contracts” that bundle power with renewable-energy certificates; 2) short-term E&C contracts negotiated through Russia’s wholesale electricity market; 3) miscellaneous E&C transmission agreements with Irkutsk region distributor JSC IENC; 4) 15-year Renewable Source Energy (RSE) capacity contracts; and 5) 16-year KOMMod agreements for capacity from retrofitted thermal plants.
Historical spending under these contracts has risen sharply, reaching USD 0.90 billion in 2023, USD 1.04 billion in 2024 and USD 1.81 billion in 2025, with USD 1.04 billion recorded in the first half of 2026. The proposed 2027-2029 caps are 44%-53% higher than the USD 1.95 billion limit approved for 2026, reflecting higher projected power demand for aluminium smelting, anticipated increases in Russian electricity and capacity prices, procurement of “green” certificates, additional KOMMod obligations and a weaker rouble.
Because the percentage ratios for the new caps exceed the 5% threshold in Chapter 14A of the Hong Kong Listing Rules, the proposal requires disclosure, annual review and independent shareholders’ approval. An extraordinary general meeting (EGM) is scheduled with a circular to be dispatched by 10 November 2026; the record date is 9 November 2026. En+ and its associates will abstain from voting.
An Independent Board Committee of RUSAL’s non-executive directors and Altus Capital, appointed as independent financial adviser, will opine on the fairness of the proposed terms and on the necessity for contract durations that extend beyond three years (10-16 years for Green, RSE and KOMMod agreements).
The board states that maintaining access to stable, competitively priced power—particularly low-carbon hydroelectricity—and complying with mandatory Russian capacity-market rules are critical to RUSAL’s operations and in the interests of all shareholders.