NLMK threatens EU with job losses when imposing sanctions against Russia

The Russian steel company NLMK is threatening to halt production in Western Europe if the EU decides to impose economic sanctions on Moscow. La Libre Belgique showed a letter from NLMK management to the European governments of the countries in which the company is located, namely Belgium, Italy, France and Denmark. The letter warns that EU sanctions against Russia will have devastating consequences for employment in Europe.

Possible EU sanctions aimed at punishing Moscow for its role in the crisis in Ukraine could affect NLMK's European activities. NLMK is 86 percent owned by Russian oligarch Vladimir Lisin and employs 2,530 people in its European office, almost half of them in Belgium.

The Belgian regional government of Wallonia, where NLMK is located, confirmed that the letter was indeed received, but did not comment on the situation in any way. The country has suffered in recent years with the shutdowns of several large factories, including ArcelorMittal in Liege and Ford in Genk.

NLMK's letter explains that its European businesses are regularly in short supply, which contributed to a € 208 million operating loss in 2013. Financial support from the parent company to maintain European operations exceeded € 271 million in 2013 alone. If the parent company stops its financial assistance, then European factories will need to be closed, which will inevitably lead to the layoff of thousands of workers, whose wages for 2013 amounted to 161 million euros.