US sanctions on Alexey Mordashov have put the steel magnate’s empire in peril, underlining how the war in Ukraine is upending the businesses of some of Russia’s wealthiest billionaires. Picture: BLOOMBERG
The move against 56-year-old Mordashov and his family on Thursday comes after the EU imposed sanctions against the tycoon and his steelmaker Severstal in early March. By threatening to choke off remaining export routes, the US sanctions deal another blow to the fourth-richest Russian, who 16 years ago was close to becoming Arcelor’s biggest shareholder before being outbid by Lakshmi Mittal.
The former chairman of the World Steel Association also expanded his international presence by acquiring a stake in travel company TUI , which he helped support through Covid-19 crisis. Under Mordashov, Severstal became one of the world’s most profitable steelmakers, with its Ebitda margin reaching an eye-catching 50% last year.
“What is happening in Ukraine is a tragedy for two fraternal nations,” the billionaire said at the time. “It is terrible that Ukrainians and Russians are dying, people are suffering hardships and the economy is collapsing.”