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Rusal Questions Norilsk Plans for $600 Million Share Buyback

United Co. Rusal is questioning the need for OAO GMK Norilsk Nickel, in which it holds a 25 percent stake, to buy back as much as 2 percent of its stock as the Russian mining company considers spending cuts.

“Spending $600 million on a share buyback is a controversial decision at a time when Norilsk needs to curb investments and production costs to adjust to the market situation,” said Maxim Sokov, Rusal’s director for strategy, who has represented the aluminum producer on Norilsk’s board.