Russian steel maker Severstal reported that its consolidated steel sales decreased by 6% YoY in January-June 2022 while iron ore products consolidated sales were 57% lower due to export constraints & coal sales almost disappeared from consolidated results following Vorkutaugol divestiture. Severstal CEO Mr Alexander Shevelev said “The first half of 2022 was extremely challenging for Russian steelmakers and Severstal. Against the background of sanctions pressure, we were forced to take urgent steps to preserve the stability of the business. Thus, after the complete shutdown of exports to the EU countries, we had to redirect sales to other, less marginal markets, as well as rebuild our supply chain of inventory to ensure the operation of enterprises. The difficult access to exports followed by a decrease in the domestic demand, a sharp strengthening of the ruble and the decline in domestic prices altogether put a pressure on the company's results. As a result of difficulties in sales, we were forced to revise the production program. At the same time, there was an increase in the cost of production, mainly due to inflationary pressure from transport costs and tariffs of natural monopolies.” Severstal hot metal output fell by 16% QoQ to 2.43 million tonne in April-June 2022 quarter while crude steel production decreased by 18% QoQ to 2.4 million tonnes, due to repairs rescheduled to Q2 2022 to balance actual capacities and narrowing demand for steel. Steel sales declined by 17% QoQ to the 2.27 million tonnes, affected by difficult access to export markets coupled with the declining demand in the domestic market. Production of hot metal was flat YoY at 5.3 million tonne while crude steel production decreased by 7% YoY to 5.32 million tonnes, as a result of converter repairs which was rescheduled to Q2 of 2022. Steel sales were down by 6% YoY to 5 million tonnes, due to limited access to export markets followed by a decrease in the domestic demand. Semis sales were 12% higher YoY due to strong sales of pig iron to the USA in Q1 of 2022. Commercial steel sales were lower by 9% YoY to 2 million tonnes as a result of import ban imposed by the European Union in March 2022. PАО Severstal is a vertically integrated steel and steel-related mining company, working with customers and partners to create new products and integrated solutions from steel. The company's production facilities are located in Russia. Severstal is listed on MOEX and on the LSE. Severstal reported revenue of USD 11.6 billion and EBITDA of USD 6 billion in 2021. Severstal’s crude steel production in 2021 reached 11.6 million tonnes.