Russian steelmaking giant Evraz said 10 of its board members had quit today after the firm’s largest shareholder Roman Abramovich was slapped with sanctions, leaving only the chief executive remaining in post.
The UK government froze the assets of the Chelsea owner yesterday which sent Evraz’s share price plummeting, leading the London Stock Exchange to suspend trading in the firm.
In a statement today, Evraz confirmed all its non-executive directors had resigned with “immediate effect” and that it was “deeply concerned and saddened by the Ukraine-Russia conflict and hopes that a peaceful resolution will be found soon”.
The exodus will pile further pressure on the firm after Culture secretary Nadine Dorries announced yesterday that Abramamovich, who owns a 28.6 per cent stake in Evraz, would be hit with sanctions along with six others.
Government said he had destabilised Ukraine through his “effective control” of the company which, it said, may have supplied steel to the Russian military for use in the production of tanks.
Evraz rejected the suggestion that Abramovich had control of the firm because his holding was less than 50 per cent, and said he had no right to appoint or remove the majority of the board.
The move has also effectively now left Chelsea football club in limbo with Abramovich now unable to push through a planned sale, banned from selling tickets and unable to conduct any transfers.
Government is now looking to widen the net on sanctions and plans to push through the Economic Crime Bill next week which will allow it to potentially hit more Russian oligarchs with sanctions.