Severstal can no longer supply products to the European Union after sanctions were imposed on its main owner Alexey Mordashov, the company said in a statement on Wednesday. The EU slapped sanctions amid Russia’s military operation in Ukraine.
"We decided to officially confirm that supplies to the EU were suspended due to sanctions imposed on the shareholder. The flow of goods will be redirected to alternative global markets," the statement said.
Earlier, a source close to the company told TASS that shipments both to companies and traders had been suspended. Severstal’s contractors in the EU have no right to acquire the company’s products under the law now, the source explained. Products may be redirected to the Middle Eastern, Asian and South American markets, he added.
The European Union has already imposed several sanctions packages against Moscow in response to the start of military operation in Ukraine. Businessmen, politicians, TV anchors and the military were blacklisted. Their assets in Europe will be frozen, as well as entry and transit will be prohibited for them. Particularly, the main owner of Severstal Alexey Mordashov has been put under sanctions.
Severstal is a vertically integrated steel and mining company, one of Russia’s largest steel producers. Cherepovets Steel Mill is the company’s key asset. Its production capacity roughly totals 12 mln tonnes of steel per year.
