Major MMK shareholder sanctioned by EU

The major shareholder in Magnitogorsk Iron & Steel Works (MMK) is among the individuals named in the European Union’s fourth round of sanctions to be imposed since Russia’s invasion of Ukraine.

Victor Rashnikov, who currently owns 79.8% of the company through another Russian company, LLC Altair, was on the latest list of sanctioned Russian individuals published by the EU on Tuesday March 15.

MMK owns assets in Russia and Turkey and mainly produces flat steel products.

Hot-rolled coil is the primary product exported by the company from Russia. Its major outlets are Turkey, Asia, and the Middle East and North Africa (Mena) regions. The EU sanctions should not, therefore, have a significant impact on these tradeflows, Fastmarkets understands.

The latest offers of HRC from MMK into Turkey were reported at $1,070 per tonne cfr, or about $1,015-1,030 per tonne fob Black Sea, with no deals heard over the past week by the time of publication.

Russia-based steelmakers can potentially continue exporting steel to Turkey, Fastmarkets understands, because Western sanctions do not have a direct impact on such trade, and Turkey has not imposed restrictions on trade with Russian steelmakers.

MMK’s Turkish asset, MMK Metalurji, however, which produces hot-rolled coil, hot-dip galvanized coil and polymer coated coil, may face problems with sales to the EU as a result of the sanctions against Rashnikov.

There has been no clarity yet over the likely impact of the sanctions on MMK Metalurji operations or sales, a source close to the Turkish subsidiary told Fastmarkets.

“There will be a meeting with [the] Russian managers today,” the source said.

Trade in finished steel products from Russia to the EU also became subject to sanctions Tuesday within the EU’s fourth package of measures to be implemented since Russia started the war.

During the week to March 11, the UK imposed sanctions on Roman Abramovich, who owns 28.6% of Russian steel company Evraz.

In early March, measures were taken against Severstal’s owner, Alexey Mordashev, as well as against Metalloinvest owner, Alisher Usmanov.

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