Oligarchs’ bitter battle arrives at High Court

TWO mighty oligarchs will slug it out in the High Court from tomorrow for the rights to a multi-billion pound stake in the world’s biggest aluminium firm.

Oleg Deripaska is being sued by Michael Cherney, an Uzbek-born billionaire who claims he signed agreements with Deripaska which gave him 20 per cent of the latter’s stake in aluminium firm Rusal.

Cherney alleges he and Deripaska were business partners in Russia in the early Nineties and is suing Deripaska for his interest in the businesses or damages in lieu of that.

Deripaska rejects the claim and states that the rival oligarch was never a shareholder and that he paid Cherney for protection. Cherney dismisses such claims as an attempt to divert attention away from the real issues before the court.

The trial will set out to establish whether Deripaska is liable to Cherney for anything at all. It will not decide on any financial settlement that may subsequently be due.

Cherney now lives in Israel and is the subject of an international arrest warrant which will prevent him from appearing in Britain in person.

The case is being heard in London after a judge said that he would be the target of an assassination attempt if he returned to Russia.

Dozens of witnesses are expected to be called and details of the brutal battle for control of the post-Soviet commodity market are likely to emerge.

TRACEY BOLES PAY-TV sports broadcaster ESPN has seen its pre-tax losses widen by 74 per cent to £64.4 million due to writedowns and the cost of ending parts of its sports coverage.

New accounts for the year to October 1, 2011, show turnover for the period fell by 2.5 per cent to £150.7 million.

The dramatic increase in its pre-tax losses was due largely to it having to record a £15.1 million writedown on the value of some of its assets.

Additionally, the accounts show that ESPN has set aside a £4.7 million provision to cover the cost of terminating part of its sports coverage.

They go on to say that the pay-TV group has obtained a letter of financial support from its US parent company.

Of the £150.7 million in revenues it generated in its 2011 financial year, the UK was responsible for £121.4 million and continental Europe brought in £21.4 million.

The Middle East accounted for the rest.

ESPN last month suffered a blow when it lost out to BT in the auction for live Premier League football rights for the three seasons to 2016.

However, the Disney-owned sports broadcaster still retains the rights to the FA Cup, the Europa League and the Scottish Premier League.

A spokesman for ESPN declined to make a comment.

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