Approximately 200 billion rubles in debt owned by foreign entities associated with the industrial conglomerate "Evraz"
JSC "EVRAZ KGOK" (Kachkanarsky Gorno-Oбogatitelnyy Kombinat) is taking legal action against foreign companies, demanding the repayment of over 200 billion rubles, as stated in a pending lawsuit to be considered by the Moscow Arbitration Court.
According to financial experts, the British-registered company Evraz plc and Luxembourg's Evraz Group S.A., two key shareholders in the Russian asset NTMK (Nizhnetagilsky Metallurgical Kombinat), are among the suit's addressees. Evraz Group S.A. is also alleged to own shares in other Russian entities, including Evraz Mezheurechensk, Metallenergofinans, EVRAZ Yuzhny Stan, and the joint venture Streamcor.
EVRAZ KGOK is seeking the transfer of 196.66 billion rubles ($172.8 million) from Evraz Group S.A., which they plan to use to purchase shares in the Russian companies owned by the litigant. The British parent company Evraz plc, which oversees both Evraz Group S.A. and "Evraz NTMK" (Nizhny Tagil), is the co-defendant in the lawsuit.
A spokesperson for Evraz has stated that the legal action between EVRAZ KGOK and foreign companies within the group is related to the repayment of intra-group loans. Due to the restrictions imposed by sanctions, companies operating under foreign jurisdictions face difficulties executing currency transactions and reduce the risk of administrative liability. As a result, EVRAZ KGOK is employing various measures to safeguard its economic interests and mitigate risks, such as filing this lawsuit.
The court hearing is scheduled for June 3 and will take place in secret. Previously, in January 2025, "Evraz NTMK" was added to the list of economically significant organizations, providing the government with the authority to suspend the corporate rights of foreign shareholders. However, this independent lawsuit could accelerate the process, as it may lead to the auction of foreigners' shares to pay off the debt, with EVRAZ KGOK having the potential to acquire shares should there be no other buyers.
In other news, DK.RU reported that the Moscow Arbitration Court had previously granted claims against Italian partners by "UDR-Ekaterinburg." Meanwhile, "Titanium Valley" is reportedly seeking cooperation with Chinese investors, as noted in a separate article on DK.RU.
Despite the pending legal action, publicly available evidence does not indicate an ongoing lawsuit specifically between JSC "EVRAZ KGOK" and foreign parent entities Evraz Group S.A. or Evraz plc concerning a 200 billion ruble debt or the forced auction of foreigners' shares in Russia. However, significant sanctions have been imposed on Evraz plc by the UK and Western nations, with Evraz plc being listed under UK financial sanctions due to its connections to activities undermining Ukraine's territorial integrity. The UK sanctions may indirectly impact the ownership and financial dealings of Russian subsidiaries, including EVRAZ KGOK.
In light of the pending legal action, there seems to be no ongoing lawsuit between JSC "EVRAZ KGOK" and the foreign parent entities Evraz Group S.A. or Evraz plc, concerning a 200 billion ruble debt or the forced auction of foreigners' shares in Russia. However, the sanctions imposed on Evraz plc by the UK and Western nations may indirectly influence the financial dealings of Russian subsidiaries like EVRAZ KGOK due to its ties with Evraz plc.
The industry of finance is also involved, as the legal action between EVRAZ KGOK and foreign companies within the Evraz group pertains to the repayment of intra-group loans, making it a significant business matter as well.
