Michael Cherney – Revisiting Russia's Past

I recently wrote some articles on RUSAL the Russian aluminium giant and Michael Cherney's pending court case in London. Here we will look at the aluminium wars and why Michael Cherney chose London as the venue and not Moscow.

Michael Cherney's court case against Oleg Deripaska and his company RUSAL, is throw back to a period of transition in Russian society. In the 90s It was regarded as a country with an economy run by the mafia.

Today Russia has emerged from this period of transition to become a global power on an economic and political level. RUSAL is seen as one of its flagship compnay's, reflecting Russia's new economic power.

During the so-called "Aluminum Wars" of the 1990s, rival Russian oligarchs fought violently for control of the countries second-largest industry. The stakes were high and around 100 people lost their lives.

A Court Case

The losers of the Aluminum Wars don't wish to fight in the Russian courts where they are seen as outcasts and prefer to try and take the battle to courts around the world. In Michael Cherney's case, the venue is London.

As we stated in our previous articles, the court case has nothing to do with the UK and the judge has already cast a huge doubt on the case being the right venue for the court case to take place.

Michael Cherney talks of giving $600 million of the several billion he thinks he will win to charity and it makes a great headline for the media but publicity alone is not enough - he has to win the money.

The UK Courts would have to get involved in settling another countries disputes and this looks unlikely to happen.

The Aluminum Wars

Michael Cherney (also Mikhail Chernoy or Mikhail Chorny) is a Russian-born but now based in Israeli, entrepreneur and is a figure that crops up frequently in connection with the aluminum wars.

Andrei Kalitin has recently written a book alleging mafia involvement in the aluminum business. The book titled Mafia in Black, outlines this period and featured Michael Cherney. Kalitin alleged he was shot in the shoulder which may well be a publicity grabbing headline, as no cartridge was found and he refused medical aid and the matter went no further with the police.

There are however others who have written about the aluminum wars not been so lucky.

Vadim Birukov was found dead in his garage, he had been badly beaten and his mouth had been taped. Birukov's Business in Russia was the first independent magazine to expose organized crime's role in aluminum in Russia and he to, had been a critic of Michael Cherney. The murderers were never found and no one has been convicted of the crime.

Aluminum was a dangerous business in Russia in the 1990s and it was a period where lives were lost and it's a period that still evokes powerful emotions and reactions.

A Past to Forget

There is no evidence to suggest Michael Cherney was involved at all and as he quite rightly points out - there is no evidence against him in terms of any crime. He feels much of the material written about him, has been manufactured by his enemies in Russia, in a deliberate smear campaign and this is why he feels the Russian courts would not give him a fair hearing.

The period of the aluminum wars, is one which Russia is trying to move on from and in the last few years the explosion of global commodity prices, has seen Russia take on greater importance in world affairs. Today Russia is seen in a different light to just 10 years ago, where it was seen as a joke in the west and a country run by the mafia.

The Future

Russia has again regained its status as a major player in world affairs which has come on the back of its economic resurgence. The vast riches generated by Russia's huge oil and gas reserves, have seen it emerge from a turbulent period after the breakdown of communism, to a country of real economic power.

Russia boasts the world's third largest currency reserves of around £200 billion which has cemented its position in the world as a major player in global commodities.

The aluminum wars and the arguments of the period, are ones Russia has moved on from and while Michael Cherney and others, have not forgotten the arguments of the past as we have said before:

The chances of his case against RUSAL coming to court in the UK is unlikely, just as the Iranian government recently found out with their intended case against FAZ aviation.

It's a dispute that does not involve the UK in anyway and on a political level, seeing a case bought against one of Russia's major companies in the UK courts, would be seriously damaging for Russian - UK relations.

Imagine if Russia was to stage a court case involving a major British company? The British would claim it is none of Russia's business and the same argument works both ways.

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