Evraz cancels demerger of coal assets

1st Apr 2022 12:54

(Sharecast News) - Russian steelmaker Evraz has cancelled the proposed demerger of PJSC Raspadskaya, its coal assets, because sanctions against Russia have made it "technically impossible" to carry out.

The company - in which Roman Abramovich controls a 29% stake - had announced in December of last year that it was planning to demerge its metallurgical coal assets consolidated under PJSC Raspadskaya. Last month, however, it said it had suspended the process of the demerger indefinitely as it awaited clarification regarding regulatory restrictions.

It said on Friday: "In light of the unprecedented sanctions against Russia and Russian special economic measures in response to sanctions, which were outside of control of the company, execution of the transaction became technically impossible and the decision has been taken not to proceed with the demerger."