Abramovich faces loss of up to 96% of investments in American steel
Evraz Group, owned by Russian billionaire Roman Abramovich, has received permission from the British Financial Sanctions Enforcement Authority (OFSI) to sell its North American division of the Atlas Foundation (Connecticut), specializing in the steel industry.
This will be reported by The Moscow Times.
The agreement is expected to be completed in the second half of 2025.
The terms provide for an advance of $50 million and a deferred remuneration of up to $ 450 million, which will be paid if certain financial indicators are achieved after the transaction. At best, the amount received will be five times less than the amount invested by Evraz in American metallurgical assets.
According to the newspaper, Abramovich's exit from the US market will bring huge losses.
The total cost of acquiring American assets is estimated at $5.2 billion: $2.3 billion for Oregon Steel Mills, $565 million for Claymont Steel, and another $4 billion for the assets of Swedish SSAB.
Some of these assets were subsequently sold to Russian TMK for $1.7 billion, which partially compensated for the losses. According to the results of the investments, Abramovich and his colleagues will lose from 90% to 96% of their investments.