FOREIGN investors in two of Russia’s largest mining groups have until late tomorrow to cast their votes in the battle for control of the companies.

Western institutions are expected to play a vital role in the struggle over Norilsk Nickel, which has a stock market value of £27 billion, and Polyus Gold, valued at £4.9 billion.

The groups are at the centre of the “divorce” of two Russian busi-nessmen, Mikhail Prokhorov and Vladimir Potanin. The pair were long-time business associates, but have in recent months been negotiating a split of their business empires.

The wrangling over the future of the companies has widened to include other Russian tycoons and leading companies, including Oleg Deripaska’s UC Rusal and Alisher Usmanov’s Metal-loinvest.

The immediate fate of Polyus and Norilsk will be decided at extraordinary shareholder meetings, which take place on April 7 and April 8 respectively.

In each case shareholders will vote on motions to remove the current board and install new directors. The deadline for holders of depositary receipts – mostly foreign investors – to vote is late on Monday.

As neither Prokhorov or Potanin can claim outright control of the groups, minority investors – about half of which are Western institutions – will play a key role in the vote, and have been heavily lobbied in recent weeks.

“This is the first big Russian corporate issue which will be decided by a proxy battle. It is a big moment for corporate governance in Russia,” said one banker.

Meanwhile, plans by Prokhorov to sell his 25% stake in Norilsk to US Rusal, a leading aluminium producer, have hit delays. Sources close to the talks say the sale will not now be completed before the shareholders’ meeting, although the deal is still expected to go ahead by the end of April.

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