Home News Severstal lost $400 million due to sanctions

Severstal lost $400 million due to sanctions

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Aleksey Mordashov, Chairman of the Board of Directors of Severstal PJSC, said that the company lost $400 million due to arrests of Western warehouses and accounts. He spoke about this during the Russian Industrialist forum.

“We all understand that it is now very difficult to return foreign exchange earnings to the country, partly impossible. For example, we, Severstal, lost $400 million, a little more got stuck in Europe, was arrested in the form of inventory, account balances. We will not receive them until the sanctions are lifted,” said Mr. Mordashov (quoted from “Interfax”).

According to Politico, the EU has blocked about €68 billion of Russian assets. Earlier today, on November 30, the European Commission proposed the creation of a fund for the restoration of Ukraine from the confiscated assets of Russia. According to the head of the European Commission, Ursula von der Leyen, €300 million of reserves of the Central Bank of the Russian Federation and €19 billion of Russian oligarchs are blocked in Europe. The European Commission has raised its estimate of damage to Ukraine from the conflict with Russia from €385 billion to €600 billion.

Mr. Mordashov owns 76.85% of the shares in the authorized capital of Severstal. The businessman came under EU sanctions on February 28. In March, the company reported that due to the sanctions imposed on the shareholder, deliveries to the EU were stopped. Later, the European Union banned almost all imports of Russian steel. In early June, the US Treasury added the businessman and his key assets to the SDN-list: Severstal, the gold mining company Nordgold, as well as Severgroup, through which he controlled Power Machines and the large timber company Sveza. In October, it was reported that Severstal cut production by 8% yoy.

In 2021, Severstal’s annual turnover amounted to $11.4 billion. Net profit was $4.08 billion.

Read about the situation in the metallurgy market in the material “Steel has deceived expectations”.

Erdni Kagaltynov

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