Steel Mills

Former Severstal Trading Exec Indicted for US Tax Evasion
Written by Sandy Williams
March 25, 2014
A former Severstal executive has been indicted for hiding as much as $7.5 million from US tax authorities in Swiss bank accounts held at UBS AG.
Victor Lipukhin, a former steel trader for Russian steel maker Severstal, hid assets in two Swiss UBS bank accounts from 2002 through 2007, said the Justice Department and IRS in a press release on Friday. Lipukhin, a Russian citizen, was a resident of St. Charles, Illinois from 2001 through mid-2007 and, therefore, subject to US tax laws.
In 2002, Lipukhin and another individual transferred $47 million from a UBS account in the Bahamas to a Zurich-based UBS account under a sham Bahamian entity, Old Orchard. In 2003, Lipukhin became sole owner of the account while maintaining another UBS account in Switzerland under the Bahamian entity Lone Star. Lipukhin directed transactions for both accounts through a Bahamian national and failed to report ownership and income on his US taxes.
The DOJ said Lipukhin used shell companies to purchase real estate in the US and to open bank accounts to further conceal the UBS accounts.
Media reports and the Department of Justice press release refer to Lipukhin as a former “president of Severstal Inc. (USA)”–a title that Severstal says is incorrect.
A statement released by Severstal on Saturday said, “Until 2002 Mr. Lipukhin worked for the company’s US-based trade office. He has never been a senior executive at Severstal. For a long time he has been not affiliated with Severstal. We also do not have any information about his activities or whereabouts.”
An article by the Cleveland Plain Dealer on Nov. 11, 2001 identified Victor Lipukhin as “president of Severstal Trade Inc. and son of the company’s chairman.”
If convicted of tax evasion, Lipukhin could face imprisonment.
UBS is one of several foreign banks that have been targeted by the Justice Department for fostering US tax evasion. In 2009, UBS admitted to helping Americans evade taxes, paid a $780 million fine and disclosed secret US accounts to avoid prosecution.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

USW seeks clarity on plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.

Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.

ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).

Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!

AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).