Russian steelmaker Evraz looks to sell Canadian, U.S. assets amid sanctions

The Russian steelmaker is looking to sell its assets in North America in the wake of the sanctions against Russia.

The company, whose largest shareholder is a Russian billionaire, said Wednesday that it has launched a process to solicit proposals for the acquisition of its subsidiaries.

Dozens of Russian elites have faced sanctions from the west since Russia's invasion of Ukraine. The owner of a famous football club was forced to sell the club and many of his other assets because of his links to the Russian president.

There are also operations in Red Deer, Alta., and Camrose, Alta., as well as inOregon and Colorado. In Canada, the company has about 1800 employees.

The company said that a sale wouldunlock the value of the business.

The giant steelmaker has provided around 58 per cent of the pipe to Trans Mountain Corp.

The company acknowledged in a June letter to shareholders that it was struggling due to the sanctions and was having problems with international and U.K. consulting firms not working with it.

In light of recent events, the company is facing serious challenges in its corporate governance and operating environment, according to a letter written by the CEO. The resignation of all independent directors from the company's board of directors on March 10, 2022, makes it difficult to reestablish a board that is majority independent.

The situation is outside of our control. We can change our business to fit the new reality.

There are no other shareholders facing sanctions according to the company.

The email was mpotkins@postmedia.

The Financial Post is part of Postmedia Network Inc.

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