Mordashov estimated the losses of Severstal due to sanctions at $400 million

Because of the sanctions, Severstal has already lost about $400 million, which is about 10% of its profit in 2021Alexey Mordashov

The losses of Severstal due to the blocking of accounts and warehouses as a result of sanctions amounted to about $400 million, said the largest shareholder and HEAD of the board of directors, Alexei Mordashov, RBC correspondent reports.

“We, Severstal, lost about $400 million, a little more, got stuck in Europe and were arrested simply in the form of inventory, account balances. We will not receive them <...> until the lifting of sanctions, while there are no signs of this, ”he said. According to him, it is now “virtually impossible” to return foreign exchange earnings to the country.

Severstal in its report for the third quarter of 2022 reported that consolidated sales of iron ore products for the nine months of this year decreased by 46% compared to last year due to EXPORT restrictions.

Severstal's IFRS net profit in 2021 was $4.08 billion.

Alexei Mordashov came under EU sanctions at the end of February, the US imposed restrictive measures against him and Severstal itself in June. All funds and assets of Mordashov in the EU should be frozen, he is also prohibited from entering the EU or transit through its territory.

Severstal did not pay off the bonds due to sanctions against Mordashov Business

On March 2, Severstal announced that it had completely stopped the export of steel products to the EU countries after the sanctions against Mordashov.

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“We have stopped deliveries to the EU due to the sanctions imposed on the shareholder. We are redirecting commodity flows to alternative world markets,” the company said in a statement.

Mordashov, commenting on the EU decision on sanctions, said he did not understand the reasons for this. “I am far from politics and all my life I created economic value for the companies in which I worked in RUSSIA and abroad. I have absolutely nothing to do with the emergence of the current geopolitical tensions. I don’t understand why sanctions have been imposed on me,” he told RBC.

At the end of August, The Wall Street Journal, citing sources, wrote that Mordashov was looking for an opportunity to ease sanctions against his companies. One of the options the publication called the transfer of 50% of the billionaire's shares in Severstal and Nordgold to a trust under trust management, 50% to the fund, so that profits from it would go to the UN. However, Severstal denied all reports of Mordashov's refusal of the share.