Rusal, RusHydro Disagree Over Outcome of Boguchansk Meeting

United Co. Rusal and project partner OAO RusHydro are in dispute over whether they reached an agreement today on cost cuts related to the construction of a power plant in Siberia.

RusHydro met with Rusal to agree on a cut of 11 percent, or 800 million rubles ($24 million), for the work planned at Boguchansk this year, Vasily Zubakin, the acting chief executive officer of RusHydro, told reporters in Moscow today.

Rusal, an aluminum producer controlled by billionaire Oleg Deripaska, denied any accord and called for a review of all costs with the possibility of picking alternative contractors for the work, the Moscow-based company said today in an e-mailed statement. RusHydro maintained, in a subsequent statement, that both parties came to an agreement.

The partners plan to pay contractors 750 million rubles this week for work carried out in February, Zubakin said. Rusal said it was ready to make payments for Boguchansk, without saying whether it backed the 750 million-ruble payment.

To contact the reporter on this story: Yuriy Humber in Moscow at yhumber@bloomberg.net

To contact the editor responsible for this story: Mark Sweetman at msweetman@bloomberg.net

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