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Evraz

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EVRAZ plc
Company typePublic limited company
MCX: EVRAZ
IndustrySteel
Mining
Founded1992 (Moscow)
HeadquartersMoscow, Russian Federation
ProductsSteel
Steel products
Vanadium slag
Iron ore
Coal
RevenueIncrease US$13.224 billion (2021)[1]
Increase US$4,583 billion (2021)[1]
Increase US$3.524 billion (2021)[1]
OwnerRoman Abramovich (30.5%)[2]
Number of employees
71,591 (2021)[1]
Websitewww.evraz.com

EVRAZ plc (Russian: Евраз) is a UK-incorporated multinational steel manufacturing and mining company part-owned by Russian oligarchs.[3] It has operations mainly in Russia as well as the USA, Canada, and Kazakhstan. As of 2015, the ultimate beneficial owners were Russian oligarchs Roman Abramovich (31.03%), chairman Alexander Abramov (21.59%) and CEO Aleksandr Frolov (10.78%) with the remaining 36.6% shares owned by other shareholders.[2]

Its listing on the London Stock Exchange (LSE) has been suspended since March 2022 because of sanctions over the 2022 Russian invasion of Ukraine.[3] As of January 2024 the shares remained suspended.[4]

History

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The company was founded as a small metal-trading business in 1992.[5] On 2 June 2005 Evraz Group floated some 8.3 percent of its shares in the form of GDR in London.[6] The company was priced at $14.50 per GDR implying an equity value of $5.15 billion.[6] An additional 6% stake was placed in January 2006, resulting in a total free-float of 14.3%.[7]

The company acquired Claymont Steel from H.I.G. Capital in 2008 for US$564.8 million.[8] The mill was closed in December 2013.[9]

In 1998, Otari Arshba, who was a KGB officer and, later, was an FSB officer, became the director of public relations, and then he successively held the positions of vice president and senior vice president. Until March 2004, he was the chairman of the board of directors of the holding company according to a Gordonua.com article.[10]

As of 2021, the Canadian unit of Evraz employed 2,000 people and generated $2.4 billion in revenues.[11] The North American unit had annual crude steelmaking capacity of 2.3 million tons, and a capacity of 3.5 million tons of finished steel for heavy industry.[12] Evraz operates two electric arc furnaces, in Pueblo, CO, and in Regina, SK.[12]

In the immediate aftermath of the 2022 Russian invasion of Ukraine, the British government accused the company of "providing financial services or making available funds, economic resources, goods or technology that could contribute to destabilising Ukraine."[13]

In March 2022 after sanctions were applied to Abramovich, owner of 29% of the company,[14] the Financial Conduct Authority suspended the trading of Evraz shares on the LSE.[15] The non-executive members of the board subsequently resigned.[14]

On 10 August 2022, Reuters reported that Evraz was seeking to sell its North American units.[16][17] At the time, the Regina mill was reported to employ 1,200 people.[18]

In September 2022 U.S. Steel and Nucor were reported to be interested in the North American assets. New York-based boutique advisory firm Three Keys Capital was named as the agent for the sale.[11] As a result of the 2022 Russian invasion of Ukraine, Evraz was sanctioned and its shares delisted from the LSE.[19]

Operations

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Evraz sets aside its coal business by the end of the year 2021 on the premise of all needed approvals, according to the group's report of the 1st half of 2021. In the very beginning of 2021 EVRAZ announced expecting to spin off its coal division consolidated in Raspadskaya. In April 2021, the group's board of directors approved the demerger of its coal assets to be shared pro rata among Evraz shareholders.[20] In January 2022, Evraz shareholders also approved the demerger of the group's coal business, consolidated at PJSC "Raspadskaya" after the final decision made by the board of directors of Evraz last December.[21]

The business structure is as follows:[22]

Steel

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Ore

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  • Evrazruda mining and enrichment facilities in Kemerovo Oblast
    • In the Kemerovo Oblast: Tashtagol Mine, Kaz Mine, Sheregesh Mine, Gurev Mine, Abagur Sinter and Enrichment Plant
  • Kachkanarsky Ore Mining and Processing Enterprise – Vanady – KGOK pit mining in Sverdlovsk region;
  • Sukha Balka Mines, Kryvyi Rih, Ukraine.

Coal

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  • Yuzhkuzbassugol coking coal mining in the Kuzbass Region
  • Raspadskaya/ coking coal company with three mines and one open pit in Mezhdurechensk, Kemerovo region, EVRAZ owns 82% of Raspadskaya

Vanadium

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  • EVRAZ Vanady Tula
  • EVRAZ Nikom
  • EVRAZ East Metals AG

Sales and logistics

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  • Metallenergofinance MEF, supplying electricity and heat for Evraz facilities
  • Nakhodka Commercial Sea Port in the Russian Far East, handling most of Evraz' exports
  • Trading House EvrazHolding/TH EvrazHolding working in domestic sales
  • Trading House EvrazResource/TH EvrazResource working in domestic sales

Corporate structure

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The company's interests in the majority of its subsidiaries are held indirectly through its ownership of Mastercroft. In June 2006, Evraz Group announced a transaction that resulted in the transfer to Greenleas International Holdings of a 50% interest in Lanebrook Ltd., an entity controlled by the principal shareholders of Evraz Group. As of April 2015 Lanebrook Ltd. held 63.70% of the company's shares, with the ultimate beneficial owners being Roman Abramovich (31.03%), chairman Alexander Abramov (21.59%) and CEO Aleksandr Frolov (10.78%).[2]

Carbon footprint

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Evraz reported Total CO2e emissions (Direct + Indirect) for 31 December 2020 at 43,620 Kt (+280/+0.6% y-o-y).[24]

Evraz's Total CO2e emissions (Direct + Indirect) (in kilotonnes)
Dec 2018 Dec 2019 Dec 2020
38,790[25] 43,340[26] 43,620[24]

See also

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References

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  1. ^ a b c d "Annual Results 2021" (PDF). Evraz. Retrieved 25 February 2022.
  2. ^ a b c "Share information 20 April 2015". Evraz. Archived from the original on 15 October 2018. Retrieved 2015-03-17.
  3. ^ a b Pfeifer, Sylvia (2022-03-10). "Evraz shares suspended after Abramovich sanction news". Financial Times. Retrieved 2022-03-10.
  4. ^ "London Stock Exchange | London Stock Exchange". www.londonstockexchange.com.
  5. ^ "History of the Evraz Group". steelonthenet.com. Retrieved 28 March 2015.
  6. ^ a b EVRAZ Raises $422M in soft London IPO Archived 2013-07-01 at the Wayback Machine St Petersburg Times, 3 June 2005
  7. ^ "Russian and Kazakh firms set for relegation from FTSE 100". City AM. 29 May 2013. Archived from the original on 25 September 2018. Retrieved 28 March 2015.
  8. ^ Sandle, Paul (2007-12-10). "Evraz Group agrees to buy Claymont Steel for about 564.8 mln usd cash". AFX News Limited. Thomson Financial News.[dead link‍]
  9. ^ "Evraz Claymont Steel shutting down". Gannett. 14 October 2013.
  10. ^ "Записки колишнього підполковника КДБ: Агентура впливу російської "глибинної держави": Один з авторів книжки "КДБ грає в шахи" і колишній співробітник Комітету держбезпеки СРСР Володимир Попов нещодавно завершив роботу над своїми мемуарами. У книжці "Змова негідників. Записки колишнього підполковника КДБ" він розповідає про становлення режиму російського президента Володимира Путіна, його соратників, про свою роботу в комітеті та головні події, до яких були причетними радянські спецслужби. Раніше книжки не видавали. За згодою автора видання "ГОРДОН" ексклюзивно публікує розділи з неї. У цій частині Попов пише про агентів КДБ у бізнесі та на держслужбі" [Notes of a former lieutenant colonel of the KGB: Agency of influence of the Russian "deep state": Volodymyr Popov, one of the authors of the book "The KGB Plays Chess" and a former employee of the State Security Committee of the USSR, recently completed work on his memoirs. In the book "Conspiracy of scoundrels. Notes of a former lieutenant colonel of the KGB", he talks about the formation of the regime of Russian President Vladimir Putin, his associates, his work in the committee and the main events in which the Soviet special services were involved. Previously, books were not published. With the consent of the author, the publication "GORDON" exclusively publishes sections from it. In this part, Popov writes about KGB agents in business and civil service.]. «ГОРДОН» (Gordonua.com) (in Ukrainian). 12 August 2020. Archived from the original on 17 July 2023. Retrieved 17 July 2023. All archived articles of "Заговор негодяев. Записки бывшего подполковника КГБ", "Владимир Попов" 2020 ("Conspiracy of scoundrels. Notes of a former KGB lieutenant colonel", "Vladimir Popov" 2020): List part 1, List part 2, and List part 3
  11. ^ a b "Evraz's North American assets sale muddled by Canada's sanctions". Reuters. 8 September 2022. Retrieved 12 February 2024.
  12. ^ a b "Evraz Colorado, Canada mills on the market". Recycling Today. Retrieved 12 February 2024.
  13. ^ "Evraz shares sink after Abramovich sanctions and government accusations of backing Russian forces". CityAM. 2022-03-10. Retrieved 2022-03-10.
  14. ^ a b Sweney, Mark (11 March 2022). "Evraz board resigns after sanctions imposed on Roman Abramovich". The Guardian. Retrieved 11 March 2022.
  15. ^ "Notice Of Temporary Suspension Of Listing From The Official List". London Stock Exchange. 10 March 2022. Retrieved 11 March 2022.
  16. ^ Anilkumar, Radhika (10 August 2022). "Evraz selling North American units". U.S. News & World Report. Retrieved 10 August 2022.
  17. ^ "Russian steelmaker Evraz eyes sale of Canadian, U.S. facilities". The Globe and Mail. August 10, 2022 – via www.theglobeandmail.com.
  18. ^ "Evraz PLC plans to sell off North American assets, including steel plant in Regina". CBC. Retrieved 12 February 2024.
  19. ^ "UK imposes sanctions on Roman Abramovich-linked steel firm Evraz". The Guardian. 5 May 2022. Retrieved 27 January 2024.
  20. ^ "Evraz demerges of its coal business". Interfax.com. 2021-08-05.
  21. ^ "Акционеры Evraz одобрили выделение угольных активов" (in Russian). Интерфакс. 2022-01-11.
  22. ^ Our business Archived 2011-12-05 at the Wayback Machine Evraz
  23. ^ "EVRAZ United West Siberian Metallurgical Plant | Metal Bulletin Company Database". www.mbdatabase.com.
  24. ^ a b "Evraz's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on May 16, 2021. Alt URL
  25. ^ "Evraz's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on May 16, 2021. Alt URL
  26. ^ "Evraz's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on May 16, 2021. Alt URL
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