AUS
NZ
UK
CA
USA
IND
Highlights
- The Financial Conduct Authority has temporarily suspended trading shares of Russian steelmaker Evraz after UK imposed new sanctions on Russian oligarch Roman Abramovich.
- Early on Thursday, shares of the steelmaker fell by over 15% to 79.94p.
Evraz Plc (LON: EVR), the FTSE 100-listed multinational vertically integrated steel manufacturing and mining company, is in the news after the Financial Conduct Authority (FCA) temporarily suspended its trading on the London Stock Exchange on Thursday (10 March) after the UK government imposed new sanctions worth £15 billion that targeted its major stakeholder Roman Abramovich, which sparked a sharp sell-off.
© 2022 Kalkine Media®
Suspension of trading
The FCA temporarily suspended trading shares of Evraz after Russian oligarch Abramovich, who holds 30% stake in the company, was targeted by new sanctions. In the early trade on Thursday, the shares of the steelmaker fell by over 15%.
The new sanctions target seven of Russia’s wealthiest and most influential people, including Roman Abramovich and Oleg Deripaska, due to their links with Russian President Vladimir Putin, who have a collective net worth of around US$15 billion (£11.4 billion).
Also read: Rio Tinto, Imperial Brands: Top 8 firms that halted businesses in Russia
Last week, Abramovich confirmed the sale of Chelsea Football Club for £3 billion, but with the new sanctions now, the sale will be on hold. But under a special licence granted by the UK government, the premier league club can continue with its playing activities.
Abramovich was reportedly found to have received preferential treatment and concessions from Kremlin and the steelmaking company has been involved in providing resources, financial services, funds, goods, or technology that could be helpful for Russia in its invasion of Ukraine.
On Wednesday, the company suspended its interim dividend payout, which would have returned cash to Abramovich. Recently, the company reported total segment revenue of US$14.2 billion year-on-year, up from US$9.75 billion in FY2020, beating expectations.
Also Read: Barratt, Taylor Wimpey, Berkeley: 3 housing stocks in focus today
© 2022 Kalkine Media®
Share Performance
The FTSE 100-listed Evraz Plc (LON: EVR) is listed on the London Stock Exchange since 7 November 2011. The market cap of the company stands at £999.95 million as of 10 March 2022.
Evraz Plc’s shares were trading at GBX 82.68, down by 10.66%, when its trading was halted on 10 March 2022. Its YTD return was -76.30%, and its one-year return was -75.45%.
Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
