Sanctions update - Illegality, force majeure and step-in rights

Introduction

These proceedings stemmed from QAL's and the Rio Tinto entities' (the Respondents) decision to cease production and supply of aluminium manufacturing inputs to three Russian companies (the Russian Entities) following the Australian Government's imposition of economic sanctions on Russia and certain Russian business-people (the Sanctions). The Sanctions were made under the Autonomous Sanctions Regulations 2011 (Cth) in March 2022 in response to Russia's invasion of Ukraine in February of that year.

Relevantly, the Sanctions prohibit:

1. the supply of aluminium oxide (alumina) to a person where, as a direct or indirect result, the alumina is transferred to Russia, for use in Russia or for the benefit of Russia; and