Russians released in Nigeria (August 20, 2007)

Six Russian nationals were released in mid-August after being abducted from a company compound in southeastern Nigeria more than two months ago.

Five of the hostages were employees of Moscow-based Rusal, while the sixth was a family member of a Rusal employee.

Reports claimed the Niger Delta Militant Force Squad was responsible for the kidnappings and was demanding a US$480,000 ransom, but Russian officials dismissed those reports and claimed no money was paid to release the hostages.

In a prepared statement, Rusal said that hostages were freed through the “coordinated actions” of the company, security services, and Nigerian and Russian authorities.

“On behalf of the company, I would like to especially thank the former hostages and their families for their courage, perseverance and understanding,” Alexander Bulygin, Rusal’s chief executive, said in a release.

At presstime, at least four foreigners remain in the hands of various Nigerian armed groups.

Rusal is the world’s largest aluminum producer, accounting for 12.5% and 16% of global production of aluminum and alumina, respectively.

Rusal reached top tier status after merging with SUAL and acquiring Swiss-based Glencore’s alumina assets in March. In February, it acquired 77% of Nigerian aluminum company, Alscon.

Violence in the Niger Delta swelled in 2006 when armed groups stepped up demands for oil revenue from what they believed was a corrupt government. The rogue armies eventually turned to kidnappings to help fund their violence. Roughly 200 foreigners have been kidnapped in less than two years, most of whom were set free once ransoms were paid.

After his election at the end of May, Nigerian President Umaru Yar’Adua, made it his mission to settle violence in the southern regions of the country.

Yar’Adua has met with some success by negotiating with politically motivated rebels and bringing regional tribal leaders into his government. Yet the problem persists as kidnapping has proven quite lucrative to armed groups without political ties.

The situation has led to an exit of skilled foreign workers from the area and construction delays at some of Nigeria’s oil and infrastructure projects. However, Rusal told the Interfax news agency that the hostage taking would not deter it from continuing its Nigerian operations.

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