Russians collect 281m euros in dividends from Alro

Aluminium manufacturer Alro Slatina (ALR) announced on Tuesday that it would pay out around 84% of the net profit posted last year in the form of dividends, with the sum allocated for this purpose amounting to 205.32 million RON (47.7 million euros). The majority shareholder of Alro Slatina (ALR), the Vimetco group, held by Russian magnate Vitaly Machitsky, will collect around 42 million euros. The Russians received gross dividends worth 281 million euros in overall sum from the aluminium manufacturer. Alro’s dividends alone brought Vimetco over 150 million euros, if one subtracts from 281 million euros the money invested in acquiring the majority stake and in capital increases – 130 million euros, according to available data. Machitsky took over control of Alro in 2002, during the Nastase government, through a widely disputed privatisation contract, which was under investigation by the Romanian National Anticorruption Directorate (DNA) in 2006. Vimetco decided to pay out dividends amid liquidity needs, as it has to reimburse loans worth 585 million dollars taken out for investments made in China. The group is facing a significant business decline due to the reduction in the price of aluminium.