MOSCOW, 16 April, 2004 - RUSAL, one of the world’s leading aluminium producers, today welcomed the decision of the Arbitration Institute of the Stockholm Chamber of Commerce on claims filed by Alucoal Holding Ltd., owned by Mikhail Zhivilo, against RUSAL’s Novokuznetsk Aluminium Smelter (NkAZ). The arbitration panel ruled in favour of NkAZ, stating it had no jurisdiction in the matter. Alucoal had claimed $325 million in damages arising from cancellation of contracts it claimed to have held with NkAZ..

Hearings in the matter began in February 2001. In January 2003 an interim decision was issued and  the latest ruling is dated Wednesday, 14 April.

Alucoal’s claims were based on future profits it said it lost when its contracts with NkAZ were cancelled following the smelter’s 2000 bankruptcy.

Zhivilo’s claim that the bankruptcy of NkAZ was illegal was dismissed.  The arbitrators
confirmed  the validity of the bankruptcy procedure used when a local electrical supplier was
unable to collect arrears. The agreement underlying Zhivilo’s claims was also declared invalid.

The Alucoal claims are among a series brought by Zhivilo-related entities in Stockholm, Zurich,
Cyprus and New York. The Zurich claim was dismissed early last year and the New York
claim was dismissed shortly afterwards.

In November, most of the Zhivilo-related claimants in the US lawsuit abandoned their appeal
so as to focus on their Stockholm claims.

END

About RUSAL
RUSAL, a world leader in aluminium production was formed in March 2000 from the merger of a number of the largest smelters and other aluminium producers located in the CIS. The company accounts for 75% of Russia's primary aluminium output and 10% of the global primary aluminium output. RUSAL is a fully vertically integrated company with a complete production cycle from bauxite mining and the production of raw materials, to the production of primary metal, semi-products and aluminium-based end products. RUSAL is headquartered in Moscow.

For Further information:

Please visit
www.rusal.com or contact:

Eugenia Harrison, Moscow, + 7 095 720 5170; zharrison@rusal.ru;
Fred Harrison, London, + 44 (0) 20 7431 7517; fharrison@ansdellconsult.com or
Stan Neve, New York, + 1 212 333 3810; sneve@brunswickgroup.com