Severstal to Sell Its Two American Steel Units for $2.34bln

MOSCOW (Scrap Monster): OAO Severstal, the Russian steel manufacturer has planned to sell its American subsidiaries to two U.S companies for a total of $2.34 billion.

Since last year, the company has been looking to sell its North American assets. The sale deal has done amid the prevailing instability in the Russian economy and after many rounds of sanctions by Europe and America.

The sanctions were stemming from Russia’s seizure of the Ukrainian region of Crimea and a pro-Russian rebellion in Ukraine’s east, which Moscow has been blamed for fomenting.

The analysts said that the sale of U.S assets was not related directly to the political turmoil and the company had not been targeted by the sanctions.

Severstal decided to sell its LLC unit and Severstal Columbus to Steel Dynamics Inc of Indiana and its Dearborn LLC division to AK steel Corporation of Ohio.

Severstal Chief Executive, Alexey Mordashov said that the sales of Columbus and Dearborn unlocked the substantial value of their shareholders.