Russian mining company disputes arbitrary fine

RUSSIA / FSU POLITICS - In Brief 12 Jul 2020 by Alex Teddy

On July 8 Nornickel said that it would challenge the government's 'request' to pay USD 2.05 billion to clean up a diesel spill in the Arctic. The company said the damage is not as extensive as the government claims. The company is willing to pay for the actual damage caused but the company said the true cost is much less than the government asked. Notably, the government has not gone through the courts. The Environment Minister encouraged Nornickel to go to court if they do not agree with the environmental damage impact assessment. The government invariably get its way in court. The 21 000 tonnes of diesel spilled at Norilsk because the tank containing the liquid collapsed due to a thaw in May 2020. Many Arctic buildings need renovation because of global warming. Nornickel is owned by Vladimir Potanin - reputedly Russia's richest man. He estimated the cleanup cost at more like USD 100 million. However, he said he would happily pay more if the cost really was higher.

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