Sibanthracite Group, sanctioned by U.S., reorienting to Russian market

KEMEROVO. May 2 (Interfax) - Sibanthracite Group, included in the updated SDN List on May 1, is reorienting to the Russian market.

"The Russian market has become the Sibanthracite Group's priority in terms of trade. The company will continue to increase its supplies to domestic manufacturers," Sibanthracite said on its official website.

"We were prepared for this development and clearly know how we need to act. We are continuing our work, taking into account the new realities," it said.

The restrictions imposed "will not have a significant impact on the activities of the Group," it said.

U.S. blocking sanctions have been imposed on Sibanthracite management company, the Listvyansky processing facility and the Kolyvansky, Kuznetsky Yuzhny, Malinovsky, Verkhneteshsky and Vostochny coal mines.

Sibanthracite produces and exports UHG anthracite and other metallurgical and PCI coal. The group's enterprises produced 24.55 million tonnes of coal in 2022; data for 2023 has not been disclose, except for the Verkhneteshsky open-pit mine, which last year produced 1 million tonnes of T-grade coal. The group had net profit of 30.8 billion rubles and revenue of 231.4 billion rubles to Russian Accounting Standards in 2023.

The Group's enterprises until the middle of November last year made up the Siberian division of the Elsi Management Company, as the current Elga Management Company, controlled by Albert Avdolyan and Alexander Isayev, used to be called. In mid-November, Elsi sold them to Bashkir Industrial Holding LLC, which in February was renamed Sibcapital LLC.

According to the Unified State Register of Legal Entities, Oleg Polyakov, co-owner of large Russian engineering company NIPI NG Peton LLC, and the businessman Alexei Fomenko each own 25.5% of Sibcapital Vanik Vanunts former co-owner of Almaz Fertilizers LLC, also previously one of Avdolyan's assets, and Olga Chaplygina each own 20% of the company and Alla Zotova owns 9%. All 100% of Sibcapital has been pledged to Mosoblbank as security.