Russian steel giant
Severstal is switching to non-EU markets
Alexey Mordashov, main owner of the steel producer Severstal, no longer delivers to the EU. Photo: Yuri Kochetkov/EPA/dpa
© dpa-infocom GmbH
The Russian steel group Severstal – one of the largest in the country – is reacting to the sanctions against its main owner. Now other markets are to be served.
The Russian steel group Severstal wants to switch to countries outside Europe after EU sanctions were imposed on its main owner. One sees “some problems in the relationship with customers” in the European Union, it said on Wednesday from those close to Alexey Mordashov.
The EU had previously put the businessman, who is also the largest shareholder in the Tui Group, on its sanctions list of Russian oligarchs after the attack on Ukraine. “Severstal is therefore redirecting its volumes to other international markets,” he explained.
The Russian state news agency Tass had previously reported that the steelmaker – one of the largest in the country – wanted to stop all deliveries to the EU. According to the report, customers in the Middle East, Asia or South America should now be served primarily. In this context, Severstal advertised that it was “one of the most cost-effective producers” in the world – one is therefore confident of being able to continue to utilize the capacities.
Withdrawal from the Tui supervisory board
Assets of people on the sanctions list in the EU are to be frozen and their freedom to travel restricted. Mordashov defended himself on Tuesday: He considered the war a “tragedy for two brotherly nations” and reacted with incomprehension to the punitive measures. He always saw himself as a man of business and not close to politics.
In the meantime, he has also announced that he is withdrawing from the Tui supervisory board. Through his Unifirm group of companies, registered in Cyprus, Mordashov is the single most important shareholder in the world’s largest tour operator, headquartered in Hanover. He holds a good third of the shares. Tui explained: “The aim of the EU sanctions is that Mr. Mordashov can no longer dispose of his shares in Tui AG.” This is to prevent him from earning any revenue or profits from his participation. The sanctions would have no effect on the company itself: “The EU sanctions affect Mr. Mordashov as a person, not Tui AG.”