Media release
Origin Energy & Rio Tinto must act on sanctions
The Australasian Centre for Corporate Responsibility (ACCR) is calling on Origin Energy (ASX:ORG) and Rio Tinto (ASX:RIO) to take immediate action to quarantine the interests of both Oleg Deripaska and Viktor Vekselberg in their respective joint ventures.
Oleg Deripaska and Viktor Vekselberg were sanctioned by the Australian government on 17 March. Foreign Minister Marise Payne announced a ban on alumina exports to Russia on 20 March.
Origin Energy (ASX:ORG) (77.5%) is in a joint venture with Falcon Oil & Gas Ltd (22.5%) in the Beetaloo Basin.
- Russian oligarch Viktor Vekelsberg owns approximately 16% of Falcon Oil & Gas Ltd through subsidiary company Lamesa Group Holding SA.
- Vekelsberg representative Maxim Mayorets resigned from the board of Falcon Oil & Gas on 1 March 2022.
Queensland Alumina Ltd is a joint venture between Rio Tinto (ASX:RIO) (80%) and Rusal International PJSC (20%).
- Russian oligarch Oleg Deripaska owns approximately 44.5% of En+ Group International PJSC which in turn owns 56.9% of Rusal International PJSC.
- Russian oligarch Viktor Vekelsberg owns approximately 32.3% of Rusal International PJSC through subsidiary companies SUAL Partners Ltd (21.6%) and Zonoville Investments Ltd (10.7%).
Dan Gocher, Director of Climate & Environment at the Australasian Centre for Corporate Responsibility (ACCR) said:
“We welcome the Federal government’s ban on alumina exports to Russia, which addresses the concern that Australian alumina may have been used in Russian arms manufacturing.
“We remain concerned, however, that Deripaska and Vekselberg may still profit from their investments in Australia.
“To date, neither Origin Energy or Rio Tinto has made an announcement to the exchange to inform shareholders what the sanctions may mean for their respective joint ventures.
“Origin is burying its head in the sand by claiming that: ‘neither Lamesa Holdings nor Mr Vekselberg are a party to the Beetaloo Basin joint venture.’
“This is simply not true. The joint venture is with Falcon Oil & Gas of which Mr Vekselberg controls at least 16%. Nearly 80% of Falcon’s shareholders are undisclosed.
“Both Origin Energy and Rio Tinto must act immediately to ensure that neither Deripaska nor Vekselberg profit from the respective joint ventures.
“The government must consider imposing sanctions on Rusal, in order to prevent Deripaska and Vekselberg from profiting from Queensland Alumina.
“In the absence of sanctions on Rusal, Rio Tinto must take immediate action to protect its reputation, by taking complete control of the Queensland Alumina joint venture and quarantining any profits from Rusal shareholders.
“Origin Energy should suspend its joint venture with Falcon Oil & Gas until Viktor Vekselberg’s interest in Falcon is quarantined. Origin must ensure that Vekselberg does not benefit from any successful exploration in the Beetaloo Basin.”
Background
Top five shareholders in Falcon Oil & Gas Ltd as at 13 March 2022:
| Holder | Common Stock Equivalent Held (actual) | Percent of Common Shares Outstanding (%) | Market Value (AU$M) |
|---|---|---|---|
| Lamesa Group Holding SA | 157,083,634 | 16.00 | 24.5 |
| Nicolas Mathys | 40,000,000 | 4.07 | 6.2 |
| Lupus Alpha Asset Management GmbH | 4,882,500 | 0.50 | 0.8 |
| Philip O’Quigley CEO & Executive Director | 3,513,696 | 0.36 | 0.5 |
| Generali Portfolio Management Ltd | 1,228,212 | 0.13 | 0.2 |
Top five shareholders in Rusal International PJSC as at 13 March 2022:
| Holder | Common Stock Equivalent Held (actual) | Percent of Common Shares Outstanding (%) | Market Value (AU$M) |
|---|---|---|---|
| En+ Group International public joint-stock company | 8,641,786,854 | 56.88 | 6,344.4 |
| SUAL Partners Ltd. | 3,283,210,512 | 21.61 | 2,410.4 |
| Zonoville Investments Ltd | 1,625,652,591 | 10.70 | 1,193.5 |
| Vanguard Group Inc. | 100,218,969 | 0.66 | 73.6 |
| BlackRock Inc. | 69,546,171 | 0.46 | 51.1 |
Top five shareholders in En+ Group International PJSC as at 13 March 2022:
| Holder | Common Stock Equivalent Held (actual) | Percent of Common Shares Outstanding (%) | Market Value (AU$M) |
|---|---|---|---|
| Oleg Vladimirovich Deripaska | 223,597,114 | 44.51 | 2,845.1 |
| Aktsionernoye Obshchestvo Tsentr Obrabotki Dannykh Irkutskenergo | 136,522,009 | 27.18 | 1,737.10 |
| Glencore PLC | 67,398,559 | 13.42 | 857.6 |
| Polina Valentinovna Yumasheva | 33,156,258 | 6.60 | 421.9 |
| Ninety One UK Ltd. | 627,011 | 0.12 | 8.0 |
NB: All data sourced from S&P Capital IQ
