Shares in Russian steelmaking giant Evraz plunged over 28 per cent this morning as Western sanctions sent the Russian economy into chaos, with the rouble falling over 28 per cent.
London-listed Evraz, in which oligarch Chelsea-owner Roman Abramovich holds a 30 per cent stake, faced an investor exodus today after a torrid month that has seen 70 per cent wiped off its value.
Abramovich also stepped back from his role at Chelsea football club over the weekend and handed over stewardship of the club to its charity trustees, with further sanctions against UK-based oligarchs still being weighed up by the government.
Evraz has substantial steelmaking operations across Russia and investors have fled the firm over fears its ability to export steel could be cut off by further sanctions.
The firm acknowledged the impact that the war in Ukraine was having on the business when it updated the city on its trading performance on Friday.
Boss Alexey Ivanov said: “We continue to monitor the situation and will keep you updated regarding any material developments that can influence our business.”
But bosses insisted to journalists that Evraz did not have plans to delist from the London Stock Exchange despite the tensions.
“We have no plans to delist from the London Stock Exchange at the moment. We are not considering this option,” Nikolay Ivanov, the company’s chief financial officer, told reporters.
Ivanov said the firm is still considering a secondary listing on the Moscow Exchange , however, which could go ahead this year.
Evraz and other steelmakers Sevestal and NLMK have so far escaped the Western sanctions which have been slapped on the financial and banking sectors.
A subsidiary of Russian bank VTB was suspended from the London Stock Exchange on Friday, while state-owned Sberbank has seen its London-listed shares tumble over 73 per cent.
The Russian economy has been plunged into chaos as Western sanctions begin to bite, with the value of the rouble falling 28 per cent to historic lows.