The Russian mining and metals company Evraz has assessed a possible reduction to zero exports outside the CIS in the event of sanctions being imposed due to the situation in Ukraine. This could lead to a halving of investments, to $500 million a year, according to Evraz’s annual report.

As noted in the company’s financial statements, in order to test the company’s stability, especially in a situation of possible economic sanctions due to the situation with Ukraine, an assessment was made of a scenario in which exports outside the CIS could be stopped. „This scenario reflects a reduction in capital expenditures to $500 million per year,” the document says.
The scenario also assumes a significant reduction in EBITDA and the need for the group to raise additional financing in 2022 and 2023. However, Evraz’s management has considered additional mitigating measures that could be taken in such circumstances, including further cost and capital cuts and dividend deferrals.