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Russian Nornickel settles dispute with Botswana over African assets, receives compensation

The parties have waived any and all claims against each other and Nornickel has withdrawn its claim against BCL Group in the London Court of International Arbitration

MOSCOW, November 18. /TASS/. Nornickel has settled the dispute with the government of Botswana and the country’s BCL Group over the thwarted deal on sale of Nornickel’s African assets in 2014, and received a cash compensation, the Russian company said in a statement on Thursday.

"As part of the settlement, the parties have waived any and all claims against each other in connection with the transaction and Nornickel has received an agreed cash compensation. As a result, Nornickel has withdrawn its claim against BCL Group in the London Court of International Arbitration (LCIA) and is in the process of terminating its court proceedings in Botswana against the Government," the statement said.

In October 2014, Nornickel signed a sale agreement with BCL Group for the sale of its interests in the Nkomati and Tati mines. In September 2016, the agreement became unconditional, but BCL Group did not complete the transaction. In October 2016, the Government of Botswana (the ultimate shareholder of BCL Group) successfully petitioned the High Court of Botswana to place BCL Group into provisional liquidation. Nornickel subsequently filed a claim against BCL Group in the LCIA and a claim against the Government of Botswana in the High Court of Botswana, claiming that Government was liable for BCL’s debts to Nornickel. In 2018, Nornickel terminated the sale agreement.

The Russian company has also filed a reckless trading claim against the Government of Botswana as a shareholder of BCL requesting to acknowledge it responsible for the group’s failure to properly perform obligations.