Alexey Mordashov will sell Vorkutaugol for 15 billion rubles to Russian Energy will sell one of the largest coal mining enterprises in the country, Vorkutaugol, for 15 billion rubles. This was reported on the Severstal website.
The buyer will be the company of billionaire Roman Trotsenko “Russian Energy”. The deal is expected to close in the first quarter of 2022 after the Federal Antimonopoly Service (FAS) issues a permit. Russian Energy plans to buy Vorkutaugol using its own and borrowed funds. At the same time, Mordashov became the first billionaire in Russia to get rid of the company amid the climate agenda.
Severstal's announcement notes that the sale of Vorkutaugol will allow the company to focus on a strategy to reduce carbon dioxide emissions. “As part of our ambitious decarbonisation program, through the use of the latest technologies, we are gradually reducing the consumption of coal raw materials. In the future, this trend will intensify, including due to the use of hydrogen fuel, ”explained Alexander Shevelev, CEO of Severstal. The company plans to use the proceeds from the deal, including on its decarbonization strategy.
The company said that after the sale of Vorkutaugol, greenhouse gas emissions will decrease by 14.3 percent. Nevertheless, Shepelev admitted that it would not be possible to completely abandon coal in the medium term. Severstal will remain a key consumer of Vorkuta coal – the company will sign a long-term contract with Russian Energy.
More and more companies and countries are committing themselves to reduce carbon dioxide emissions. From October 30 to November 12, a climate summit was held in Glasgow, Scotland, during which states and market participants made a number of decisions on the implementation of the 2015 Paris Agreement.