Reuters reported that Russian steel producer Severstal is seeking the release of steel products of its Latvia-based subsidiary frozen in the European Union’s warehouses after the bloc imposed sanctions on its main shareholder. Severstal asked Latvia’s authorities to allow the release of the product from its warehouses to support the subsidiary’s operations and then transfer proceeds to the unit’s frozen bank account, whose future payments are subject to the Latvian regulators’ decisions. Latvia-based SIA Severstal Distribution, Severstal’s only European subsidiary, had its operations put on hold after the sanctions against Mr Alexey Mordashov. The subsidiary employs 270 people in Latvia and Poland and owns a steel processing facility in Latvia, the largest in the Baltic States.Severstal suspended steel exports to the EU after Mr Mordashov was sanctioned on 28 February 2022 but more than 50,000 tonnes of its steel products, imported from Russia before the sanctions and for previously agreed sales, got stuck in the warehouses in Latvia, Estonia, Finland, Poland, Belgium, Netherlands, Germany and Denmark.Before the conflict in Ukraine, SIA Severstal Distribution was selling hot-rolled and galvanized steel flat products to the Baltic States, Finland, Poland and Germany among others. In 2021, it sold 1.85 million tonnes in the EU, more than half of Severstal’s total sales to Europe.--------------------------------------Severstal Overseas Subsidiaries---------------------------------------Belarus - ZAO SeverStalBel (Steel sales) 80.6%Italy - Redaelli Tecna SpA (Steel machining)Latvia - AS Severstallat (Steel sales) 50.5%Latvia - Latvijas Metals (Steel sales) 50.5%Latvia - Armaturu Servisa Centrs SIA (Steel service center) 25.2%Switzerland - Severstal Export GmbH (Steel sales) 100.0%UK - Carrington Wire Ltd (Steel machining) 97.0%Ukraine - OAO Dneprometiz (Steel machining) 58.2%Ukraine - Severstal-Ukraine LLC (Steel sales) 51.0%USA - Victory industries Inc (Repairs and construction)100.0%
Reuters reported that Russian steel producer Severstal is seeking the release of steel products of its Latvia-based subsidiary frozen in the European Union’s warehouses after the bloc imposed sanctions on its main shareholder. Severstal asked Latvia’s authorities to allow the release of the product from its warehouses to support the subsidiary’s operations and then transfer proceeds to the unit’s frozen bank account, whose future payments are subject to the Latvian regulators’ decisions. Latvia-based SIA Severstal Distribution, Severstal’s only European subsidiary, had its operations put on hold after the sanctions against Mr Alexey Mordashov. The subsidiary employs 270 people in Latvia and Poland and owns a steel processing facility in Latvia, the largest in the Baltic States.Severstal suspended steel exports to the EU after Mr Mordashov was sanctioned on 28 February 2022 but more than 50,000 tonnes of its steel products, imported from Russia before the sanctions and for previously agreed sales, got stuck in the warehouses in Latvia, Estonia, Finland, Poland, Belgium, Netherlands, Germany and Denmark.Before the conflict in Ukraine, SIA Severstal Distribution was selling hot-rolled and galvanized steel flat products to the Baltic States, Finland, Poland and Germany among others. In 2021, it sold 1.85 million tonnes in the EU, more than half of Severstal’s total sales to Europe.--------------------------------------Severstal Overseas Subsidiaries---------------------------------------Belarus - ZAO SeverStalBel (Steel sales) 80.6%Italy - Redaelli Tecna SpA (Steel machining)Latvia - AS Severstallat (Steel sales) 50.5%Latvia - Latvijas Metals (Steel sales) 50.5%Latvia - Armaturu Servisa Centrs SIA (Steel service center) 25.2%Switzerland - Severstal Export GmbH (Steel sales) 100.0%UK - Carrington Wire Ltd (Steel machining) 97.0%Ukraine - OAO Dneprometiz (Steel machining) 58.2%Ukraine - Severstal-Ukraine LLC (Steel sales) 51.0%USA - Victory industries Inc (Repairs and construction)100.0%
