Market Segment
June 3, 2022
US Sanctions Russia’s Severstal and Chairman Alexei Mordashov
Written by Laura Miller
Russian steel tycoon Alexei Mordashov has joined the list of individuals sanctioned by the US government as a result of Russia’s ongoing war in Ukraine.
Mordashov is the chairman and main shareholder of Severstal, Russia’s largest steel and mining company. He served as CEO of the company from 1996 until 2015.
On June 2, the US Department of Treasury’s Office of Foreign Assets Control (OFAC) imposed the sanctions against Mordashov and other Russian oligarchs and elites,as well as any associated entities. Mordashov specifically was added to the Specially Designated Nationals (SDN) list.
OFAC has given notification that all transactions involving Severstal or its majority-owned subsidiaries must be wound down by the end of August.
The move comes months after the start of the war and the European Union’s own sanctions against Mordashov in March, which effectively cut off major European export destinations for Severstal’s steel. At the time, Severstal signaled that it wouldn’t have trouble finding a new home for its steel products. Steel Market Update has been hearing of deeply discounted Russian steel making its way to markets such as Turkey, China, and MENA.
Severstal could not be reached for comment.
By Laura Miller, Laura@SteelMarketUpdate.com
