Doha, 21 November 2012 - Oleg Mukhamedshin, Deputy CEO of UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUALR/RUALRS), the world's largest aluminium producer, spoke at the 16th Arab International Aluminium Conference (Arabal) highlighting some of the key issues and opportunities in the global aluminium industry.

Despite a steady increase in global aluminium consumption, low aluminium prices on the LME continue to hit the industry, exposing risks and imbalances. According to RUSAL's estimates, based on actual cash costs, between 20 and 30 per cent of aluminium ex-China capacity is currently unprofitable, depending on the premium level. In China, this situation appears magnified, with almost one third of capacity under water at today's price levels.

In this context, the Middle East's recent growth to become a major aluminium producer is significant, offering opportunities, but with some challenges. The region has grown to an impressive 7.7 per cent of global production in 2011 after a decade of investment and is projected to reach 8 per cent by 2015. Yet, while the aluminium consumption in the region is due to grow by 7.7% p.a. between 2012 and 2016, production is estimated to grow at 8.6% p.a. producing an increasing surplus, which, according to RUSAL's estimates, will reach more than 3.0 million tonnes by 2016. Suppressed aluminium LME prices, increased prices for natural gas and restricted bauxite and alumina resources are the major challenges GCC producers will have to tackle to secure their future prosperity. According to Mr Mukhamedshin, large bauxite reserves and spare alumina capacity could make UC RUSAL a partner of choice for GCC producers as they seek to address the challenge of cost-effective supply of raw materials to underpin their production growth.

"The region relies on alumina import and therefore remains exposed to external market conditions. RUSAL has strong positions in both bauxite and alumina that could offer scope for mutual interest partnerships that would strengthen the Gulf producers' competitiveness and secure their future resources requirements," said Oleg Mukhamedshin, UC RUSAL's Deputy CEO and Director for Strategy and Business Development. "Overall, the world needs a competitive market for aluminium where prices are kept at reasonable levels for consumers by competition and efficiency and where competition pushes us towards new energy-efficient technologies. An open dialogue is critical for future health of the sector. Arabal 2012 is an important initiative from the Gulf Aluminium Council and I welcome the opportunity to discuss how we can work together in future to realise the potential of the global industry."

About RUSAL
UC RUSAL (www.rusal.com) is the world's largest producer of aluminium, in 2011 accounting for approximately 9% of global production of both aluminium and alumina respectively. UC RUSAL employs about 72,000 people in 19 countries, across 5 continents. UC RUSAL markets and sells its products primarily in the European, Japanese, Korean, Chinese, South East Asian and North American markets. UC RUSAL's ordinary shares are listed on The Stock Exchange of Hong Kong Limited (Stock code: 486), global depositary shares representing UC RUSAL's ordinary shares are listed on the professional compartment of Euronext Paris (RUSAL for Reg S GDSs and RUAL for Rule 144A GDSs), and Russian depositary receipts that are issued on common shares of the Company are listed on Moscow Exchange (RUALR/RUALRS).

Disclaimer
The information contained in this press release is for media advice only. The contents are true and accurate at the time of publishing, however, may change over time.

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© Press Release 2012