Russian Steelmaker Defers EU Steel Exports

SEATTLE (Scrap Monster): Leading Russian steel producer Severstal said that it has suspended steel exports to the European Union, following sanctions imposed by the EU on its primary shareholder Alexey Mordashov. It must be noted that the sanctions were imposed by the EU on Mordashov and many other Russian business tycoons, as a reaction to Russia’s invasion of Ukraine.

The statement issued by the company said that the company is facing certain problems in dealing with the customers in the European region. As a result of this, it is redirecting commodity flows to alternative markets across the world. It also noted that the company’s financial position continues to remain strong and that the low production costs will help it to continue to maintain production capacity.

ALSO READ:

Tenaris and Severstal Join Hands to Build New Welded Steel Pipe Plant

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

Meantime, Mordashev, in a separate statement, said that the happenings in Ukraine are a tragedy for two fraternal nations. Furthermore, he noted that he had never been close to politics and that he had nothing to do with the current crisis. Moreover, he wondered how the sanctions against him could contribute to the settlement of the dispute between the two countries and the dreadful conflict in Ukraine.

The Russian steelmaker had produced around 11.6 million tonnes of steel during the previous year. Exports account for almost 40% of the company’s total production. On an average, it exports nearly 3 million tonnes per annum of steel to Europe.