MOSCOW, 10 April, 2003 - RUSAL announced today a further twelve month extension to its insurance agreement covering the company's property, business interruption losses and marine cargo risks worldwide. Terms have been changed to include a significant extension of business interruption insurance arising from possible shortages of electricity or raw materials. The US-headquartered and leading global insurance brokerage group Aon Group Inc. remains broker for this contract.
The improved cargo agreement covers additional storage, ports and all raw materials and end products, as well as RUSAL's worldwide equipment transportation. Commenting on the main changes in the terms of the property programme Oleg Mukhamedshin, RUSAL’s corporate finance director, said: “In year 2002 a group of western consultants conducted complex research into the company’s risks. This resulted in a significant extension of business interruption limits arising from possible electricity and raw materials shortages as well as in setting the maximum potential losses at US$300 million.”
This year’s cargo programme covers a more extended number of storage, ports and all types of raw material and end products, as well as all RUSAL equipment carried by any transport worldwide.   The cargo agreement also provides an additional US $4 billion cover for all transport risk, including war, industrial action, terrorist acts and port storage worldwide. The new cargo programme is arranged by Lloyd's syndicates.
The revised insurance agreement provides for US $11 billion in global cover and took effect 1 April, 2003. The underwriting group includes major Russian and foreign companies, including: Ingosstrakh, ROSNO, RESO-Garant, AIG and Scor.