19 Aug 2022 12:21

ERG completely ceases supplying raw materials to MMK - ERG board chairman

KHROMTAU. Aug 19 (Interfax) - Eurasian Resources Group (ERG) has completely ceased supplying raw materials to Magnitogorsk Iron & Steel Works (MMK), Alexander Mashkevich, ERG chairman of the board of directors, said in a statement.

"It has had a strong effect [the current geopolitical situation], and it will have an even stronger one. Quite a bit, because we are not supplying nine million tonnes of iron ore concentrate and pellets today. We are not supplying, and we do not know where to supply it," Mashkevich told reporters when answering what ERG's losses have been regarding sanctions imposed against Russia, and overall owing to the situation in Ukraine.

Mashkevich explained that ERG has been supplying concentrate and pellets to MMK for the past 30 years, "now, owing to the 'anti-Russian' sanctions, supplies have been completely stopped."

"We have had to alter all the logistics chains for supplying other goods. We have had to go to other ports, and charter other ships. Of course, this costs more," Mashkevich added.

As previously reported, MMK was included in the specially designated nationals and blocked persons (SDN) list of the United States Department of the Treasury on August 2.