Ukrainian issues still hang over EVRAZ

The state of peace between Russia and Ukraine remains fragile, and no doubt continually forces EVRAZ, a mining and metals company based in Ukraine, to face its consequences.

The annual figures, which EVRAZ plans to release on April 16, have been hit hard according to the preliminary set. More than 80 percent of Ukrainian exports of steel products were sent to Russia, and the current cold relationship will impede the implementation of existing agreements. Moreover, confrontation is holding back future negotiations.

Approximately 6 percent of EVRAZ steel is produced in Ukraine and intended for export to Russia. Evraz stocks hit an intraday low of 52P back in mid-March and since the situation escalated they have retraced back to 74P and are swinging in overbought territory. Fundamentally, it is difficult to feel confident enough to buy the firm's shares because of its complex Russian and Ukrainian exposure.

EVRAZ is based in Russia and has global operations that include factories in the United States and 5,000 plant employees in Ukraine. The dispute between Russia and the US over Ukraine will not affect US EVRAZ's operations, including its Pueblo Steel Works. The plant makes rails, seamless pipes for oil fields and other steel products. Lately, the managers of the Pueblo plant have envisioned further expansion of opportunities, but proposals are still in the planning stage. This includes any possible future investment in the Pueblo plant.