Evraz PLC (LSE:EVR) said it is preparing for a “severe downside scenario” as the situation in Eastern Europe worsens.
The steel giant with a listing in London said in its financial report released today that the “situation related to Ukraine has further increased economic uncertainty and the risk of the imposition of sanctions.”
It said that there have not been any direct impacts on the company with operations in Russia yet, but the board “continues to monitor the situation in Ukraine and the response of international governments.”
The company, which almost is a third owned by Chelsea owner Roman Abramovich, said in a worst-case scenario it will have to reduce spending by US$500mln a year and go to the market to raise capital for 2023 and 2024.
Chief executive Aleksey Ivanov said, “We are conscious of the current geopolitical circumstances. We continue to monitor the situation and will keep you updated regarding any material developments that can influence our business."
The comments on the Russia and Ukraine situation were given in its full-year results and annual report, which was released today.
Evraz saw revenue grow to US$14bn in 2021 from US$9.7bn in 2020, as shares climbed 21% to 211p.
London listed Ferrexpo and Enwell Energy have already announced a shutdown of their operations in Russia.