Severstal stops steel products export to Europe

Russia’s Severstal has stopped exporting steel products to EU countries due to sanctions.

Severstal faced the refusal of European customers to purchase their products due to the sanctions imposed on the main owner of the metallurgical company, Alexei Mordashov.

Experts considered that despite the fact that Severstal was not included in the sanctions list, supplying it, as well as other structures controlled by Mordashov, would be considered an indirect provision of it to the blacklisted person.

The European market is important for Severstal. The company sells 2.5 million tons of the metal there and gets 34% of total revenue – about $3.9 billion a year. Experts noted that the company will now need to refocus on exports to the Middle East and Southeast Asia, but there is a risk that the volume will not be fully redirected.

Severstal is a Russian integrated steel and mining company. The owner of the company is Russian businessman and billionaire Alexei Mordashov.

 

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