Evraz is considering the sale of shares in the North American division

Evraz, Russia's largest steelmaker, which bought Highveld Steel & Vanadium from Anglo American 7 years ago, is considering selling part of its North American block as it seeks to reduce debt. The steelmaker has yet to decide whether to proceed with the offer at all. An improvement in the condition of the North American steel industry could attract investors. Domestic demand benefits properties in the United States.

Discussions came to light after US-Russia relations deteriorated over the situation in Ukraine. Co-owners Evraz Roman Abramovich, Alexander Abramov and Alexander Frolov have been identified as members of the inner circle of Russian President Vladimir Putin, but have not been blacklisted. George Buzhenitsa, an analyst at Deutsche Bank, said that "The idea of ​​a possible sale of shares in the North American division has nothing to do with the crisis in Ukraine, it is just that the company and its owners are weighing this opportunity to reduce debt."

The block owns seven factories in the United States and Canada, which control 45 percent of the American railroad market and also produce pipes for oil and natural gas. The assets were part of SSAB Svenskt's IPSCO block, which Evraz acquired for $ 4,030 million when steel prices peaked in 2008. TMK immediately bought some of the operations with Evraz for US $ 1.7 billion. TMK, Russia's largest producer of pipes for the oil and gas industry, also considered selling shares in its North American business. However, a decision was made against the deal due to unfavorable market conditions.

While steel prices have shown signs of recovery, they remain below levels six years ago when Russian companies began expanding their businesses in North America.