Since March 10, 2022, the day the London Stock Exchange issued orders for suspension of trading as part of the sanctions imposed by the UK on the Russian steel and vanadium producer, Evraz share price remains in limbo. Unprecedented sanctions targeting the Russian economy resulted from Russia’s invasion of Ukraine. And with the war still raging, equity investors have no interest in the Evraz share price LSE. With Ukraine war fears looming heavily, the London-based Evraz PLC, majorly owned by the Russian oligarchs and one of the largest steel producers in the world, faces a similar fate to the Russian gold and silver mining company Polymetal International. The stronghold of the Russian owners of Evraz seems to negatively impact the company’s possibilities of making a turnaround in the London bourses anytime soon.
Evraz Share Price is Now Inconsequential
The current Evraz share price LSE is 80.89 GBX on May 27, 2023. The company reported in February 2023 that review of its 2022 results was pending because it could not engage an auditor. The UK sanctions meant an asset freeze. The shares traded in the bourses until May 2022, when the UK government officially announced sanctions.
Soon upon the UK government declaring the sanctions targeting the Russian economy, the share price of Evraz plummeted dramatically. There was a time in March 2022 when the share prices came down to penny stock levels. Although the steelmaker claimed to be operating as usual, the asset freezing of Mr. Abramovich, one of the major shareholders, had a telling impact on the share prices.
A Continued Downhill Trend of Share Price in 2022
The company tried to clarify its relationship with Mr. Abramovich by declaring that the management did not consider Roman Abramovich to have effective control of the company. However, it did not cut ice with the investors, and the downhill trend of the shares continued. The sanctions did have a telling effect on the share prices through 2022. And it was especially bad in March 2022 when the share value eroded by more than 80%.
Throughout 2022, shareholders remain undecided about what to do with Evraz shares. They had all information about FCA’s suspension of Evraz shares. They were unsure about the outcome of the regulatory actions against Abramovich. Sitting tight was the only option for shareholders with no chances of trading in sight.
What the Future Holds for Evraz
It is better to avoid trying to figure out the future of Evraz share price as it would be futile amidst widespread uncertainty. However, staying optimistic might not be wrong considering that Evraz still produces steel and owns assets, and hopes that the Ukraine war will end someday.
However, it’s no consolation for Evraz shareholders; they are in a fix today. They stare at the Evraz share price on the LSE website daily, hoping for recovery.
