Russia's United Company Rusal - the parent of Aughinish Alumina - has shelved a $9 billion (€6.4 billion) plan to float shares in London this year on concerns over a global liquidity crunch, two of the company's largest shareholders said yesterday.

UC Rusal non-executive chairman Viktor Vekselberg said the initial public offering would not take place this year. This was repeated by majority owner Oleg Deripaska in comments to the Interfax news agency.

"It will definitely not happen before year-end. The issue is still on the agenda," Mr Vekselberg said on the sidelines of an investment forum in the Black Sea resort of Sochi.

"The reason is obvious. All companies are reviewing timings of their flotations. The market is very volatile and to take the risk without being sure the IPO will be successful does not make sense," he said.

The deal would have been the biggest IPO of 2007 globally, surpassing Russian peer VTB Bank, which raised $8 billion in May.

Mr Deripaska, ranked Russia's second-richest man by Forbes magazine, told Interfax the IPO would not take place before the end of 2007. "The IPO is on hold indefinitely due to market trends," he was quoted as saying.

Mr Vekselberg said the postponement would not affect UC Rusal's investment plans.

"The company currently has no need to raise short-term funds. We want to feel comfortable when we make this decision." With political transfer of power over the coming six months, UC Rusal is more likely to relaunch its IPO after the March 2008 election, around May or June, the sources said.

The company has consistently said it planned to list shares within three years of its March 2007 formation through a merger of rival Russian aluminium producers Rusal and Sual and assets belonging to commodities trader Glencore