Tata Steel Europe benefits from the confrontation between Ukraine and Russia

Shares of Tata Steel posted gains on Thursday after the highest gain of 4.6 percent a day earlier. Tata Steel rallied Wednesday on expectations that a geopolitical standoff between Russia and Ukraine would benefit the Indian steelmaker.

Global investment bank Citi says the current diplomatic sanctions against Russia could lead to economic restrictions that will directly affect trade relations between the European Union and Russia.

The European Union imports a number of goods from Russia and Ukraine, including steel, so future sanctions could lead to higher prices for these goods. Tata Steel Europe is the direct beneficiary in this scenario, Citi said the bank. As of today, the Sensex stock index is 20 percent lower compared to the same period last year.

Tata Steel is the second largest steel producer in Europe. Tata Steel was previously known in Europe as Corus, and as Tata Steel appeared in September 2010. In 1999, Corus was formed by the merger of British Steel and Koninklijke Hoogovens.

Tata Steel Europe's comprehensive portfolio includes quality metal products, a wide range of standard sheet and long products. The production is backed by the achievements of world-class R&D institutions. Tata Steel Europe operates in markets around the world, including the aerospace, automotive, construction and energy, shipbuilding and rail industries.