Ten Evraz PLC (LSE:EVR) board members, excluding its chief executive, resigned on Friday following the UK government’s sanctions on the company’s largest shareholder Roman Abramovich (read more).
Chelsea Russian oligarch owns 29% of the steel mining business, which had its shares suspended by the Financial Conduct Authority on Thursday.
Evraz, which has been supplying the Russian military with steel for its tanks, said it does not believe the sanctions apply to them as Abramovich does not have majority control and it only provides its goods to infrastructure and construction sectors.
The 10 board members who quit are Alexander Abramov, Alexander Frolov, Alexander Izosimov, Deborah Gudgeon, Eugene Shvidler, Eugene Tenenbaum, Karl Gruber, Maria Gordon, Sir Michael Peat and Stephen Odell, Evraz said in a statement on Friday.
UK government claimed Abramovich “has had a close relationship [with Putin] for decades” and obtained “financial benefit or other material benefit” from the Russian state, which the billionaire recently has denied.
“We will be ruthless in pursuing those who enable the killing of civilians, destruction of hospitals, and illegal occupation of sovereign allies," Boris Johnson, UK Prime Minister, added.
Evraz shares plummeted 52% to 82.5p, before they were suspended, since Russia first invaded Ukraine on 24 February, while they nosedived 81% in the month to date