Will Russian metallurgists be able to replace foreigners on boards of directors

The Russian metallurgy sector has been among the hardest hit by Western sanctions since the launch of Russia's special military operation in Ukraine on February 24. Already in mid-March, the EU banned the import of a wide range of steel products from Russia. Due to restrictions against Russian banks, which bought almost 100% of the production of the largest gold miners, producers also had problems with sales.

Since the beginning of March 2022, foreigners have left the boards of directors of most of the largest Russian metallurgical companies, with the exception of UC Rusal (RUAL), a total of almost 30 people. Severstal (CHMF), for example, explained this with the wording “in the light of the current geopolitical situation”, while Polyus (PLZL) cited “the prevailing unfavorable market conditions” as the reason.

Who will replace foreign directors and what competencies Russian business needs, RBC figured it out.

Who left the Russian metallurgical companies

Since the beginning of March, 27 foreign directors have left the boards of the eight largest Russian metallurgical companies - six left Polymetal (POLY), four each from Severstal, Evraz, Polyus and Nordgold, three from Norilsk Nickel (GMKN), one each — from NLMK (NLMK) and MMK (MAGN).

Only two foreigners, Thomas Verasto and Joachim Liebreg, have retained their seats on the board of directors of NLMK. And none of the six foreigners left the board of directors of UC Rusal. In early April, the chairman of the board of directors of this company, Bernard Zonneveld, called for an investigation into reports of civilian deaths in the Ukrainian city of Bucha and called for an early cessation of hostilities and a peaceful settlement of the conflict in Ukraine.