NEWS
Metinvest warns against seized mills, rearranges supply
Ukraine's vertically integrated steelmaker and mining firm Metinvest has warned anyone against using the facilities that were seized by the authorities of the breakaway Donetsk and Luhansk regions in the east of the country in mid-March.
Metinvest said any participation in its assets by either Ukrainian or non-Ukrainian residents would be illegal. By that Metinvest means using their equipment, sales of finished products or supplying the company's mills with raw materials. The company monitors its reappropriated assets closely, and any fact of commercial use of them would trigger legal action.
The company made a special warning to Russian companies following reports that Russia's vertically integrated steelmaker and mining firm Severstal may be shipping iron ore to the seized Metinvest's mills, including Yenakiieve steel mill and steelmaker ISD's Alchevsk steel plant. The possibility has been discussed by market participants in the wake of the rail tariff reductions, which Russian state-owned rail operator RZD implemented for certain directions of Severstal's transportations, from 10 April.
The company made a special warning to Russian companies following reports that Russia's vertically integrated steelmaker and mining firm Severstal may be shipping iron ore to the seized Metinvest's mills, including Yenakiieve steel mill and steelmaker ISD's Alchevsk steel plant. The possibility has been discussed by market participants in the wake of the rail tariff reductions, which Russian state-owned rail operator RZD implemented for certain directions of Severstal's transportations, from 10 April.
The reductions effectively allow shipments from Cherepovets-2 and Kostomuksha stations at a discount of 25pc. Severstal's principal Cherpovets steelworks and hardware-making subsidiary Severstal-Metiz are the only senders from Cherepovets-2 while Kostomuksha station serves as a loading point for Severstal's Karelsky Okatysh iron ore beneficiation plant. The rates for Severstal are valid until 31 December. Severstal has received the discount after it guaranteed to carry a certain amount of cargo in the specified directions, an RZD source confirmed.
Liski station is situated in central Russia's Voronezh region bordering the Lugansk region in Ukraine, and Uspenskaya is on the border between Russia and the Luhansk region. Severstal has denied that any supplies to the Ukrainian breakaway regions are taking place.
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