EU sanctions against Usmanov don't apply to USM cos as his stake is less than controlling

MOSCOW. March 1 (Interfax) - EU sanctions against Alisher Usmanov do not apply to Metalloinvest and other USM holding companies as the businessman's stake in the holding's parent company is less than 50%.

"The restrictive measures imposed by the EU against Alisher Usmanov are of a personal character and will not affect Metalloinvest. Mr. Usmanov owns less than 50% of USM Group's parent company and does not control the Group's enterprises. Thus, the inclusion of Alisher Usmanov in the EU sanctions lists does not extend the effect of the relevant sanctions to USM's companies. Metalloinvest continues to carry out business as usual, fulfilling all obligations to its employees and partners," Metalloinvest, one of Russia's biggest iron ore and steel producers, said in a statement.

"We consider the sanctions against the founder of Metalloinvest ungrounded and unfair," it said.

The EU imposed restrictive measures in the form of asset freezes and entry bans against a number of Russian state and public figures and entrepreneurs, including Alisher Usmanov, on February 28.

USM Holding Company LLC is the parent company of USM Holding, the major assets of which are Metalloinvest, MegaFon , Udokan Copper and Akkermann Cement.

Usmanov owns a 49% stake in the holding. Minority shareholders are Vladimir and Varvara Skoch, Farhad Moshiri and Ivan Streshinsky.