Trading in Evraz Steel halted in U.K. after Britain imposes sanctions on Russian oligarch

A billionaire with close ties to the Kremlin has been sanctioned by the British government, resulting in trading in Evraz being suspended on the London Stock Exchange.

On Thursday, the United Kingdom placed billionaire Roman Abramovich on a sanctions list, due to his links with Russian President Vladimir Putin.

The sanctions mean that Abramovich's assets in the U.K. are frozen, and he cannot enter or stay in Britain.

Among other holdings, Abramovich owns 28.6 per cent of shares in Evraz, a massive steel company with Canadian plants located in Regina, Calgary, Camrose, Alta., and Red Deer, Alta.

Soon after the sanctions were announced, Britain's financial watchdog suspended trading on Evraz. Before trading was suspended, shares in the company dropped 16 per cent after the sanctions were announced.

According to Britain's official sanctions list, the government was concerned about Evraz's potential role in Russia's invasion of Ukraine.

The list says Evraz "is or has been involved in providing financial services, or making available funds, economic resources, goods or technology that could contribute to destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine."

That "includes potentially supplying steel to the Russian military which may have been used in the production of tanks," according to the British sanctions update.

Impact on Regina steel workers

Premier Scott Moe says that steel produced by Evraz in Saskatchewan is not used in global operations. 

"The operations in Regina do provide North American steel for just that — steel fabrication — as well as pipelines for our energy industry," Moe told reporters at the Legislative Building in Regina on Thursday. 

He noted the United Steelworkers, which represents Evraz Steel workers, issued "correspondence last week indicating or clarifying that separation of operations that they have."

The March 4 statement from the union said Evraz North America "operates independently in Regina and Calgary, in all areas, including procurement of raw materials, operating production facilities and corporate financing."

CBC has reached out to United Steelworkers for further comment.

Moe says he has full confidence that steel mills across Canada will continue to operate under the status quo. He said he doesn't foresee any  job losses in Regina due to the U.K. sanctions.

"In fact, as we have this energy security conversation in Canada and North America, the future should look fairly bright for a company like Evraz, that can provide that steel infrastructure," he said.

On Monday, Canada added another 10 Russians to its sanctions list. Abramovich has not been added to that list so far.

Robert Huish, an associate professor of international development studies at Dalhousie University, says if Canada does invoke sanctions on Abramovich, livelihoods need to be considered. 

"Right now, the U.K. sanctions are really targeting the big symbols of the oligarchs, which are sports teams and luxury yachts. So it's not going to make an impact immediately for people who are going to work in Regina," said Huish.

"But it invites that conversation to say that if new measures are put in place, what can be done to ensure that nobody is going to lose their livelihood?"

If Canada does invoke more sanctions, Huish said it's unclear right now exactly how Canadians will be affected.

"What's complicated about sanctions and what we're going to see happen in Saskatchewan is that it will impact people in indirect ways that we haven't forecasted," he said.

"Sanctions are like a glass hammer. You try to impose them, they look really threatening. And then when they strike, they shatter in a bunch of directions that you don't see coming."

Meanwhile, the province's Official Opposition said Evraz Steel needs to have a change in ownership.

"It can no longer be in the hands of Abramovich, and all of these Russian oligarchs that are needing to have their sources of funds [cut off] so that Putin's ability to bankroll his illegal invasion is ended," said NDP Leader Ryan Meili. 

Meili acknowledged the international implications of sanctions are complicated, but said any transfer of ownership should not benefit the oligarchs. He also said that steelworkers should be part of the conversation.

Last week, Deputy Prime Minister Chrystia Freeland told reporters that Canadian companies could suffer collateral damage as Canada considered more sanctions against Russian oligarchs with ties to Putin.

Abramovich also owns famed West London football club FC Chelsea. The sanctions mean he cannot sell the football team and Chelsea cannot sell new tickets to matches.

Abramovich's spokeswoman declined immediate comment to the news agency Reuters.