ArcelorMittal sells the only asset in Russia

ArcelorMittal, the world's largest steel producer, is selling its only asset in Russia, a Siberian coal company, according to documents from the Federal Antimonopoly Service (FAS).

The steel giant sells Severny Kuzbass, which owns two coal mines in southwestern Siberia. Northern Kuzbass goes to a large private coal trader, National Fuel Company, in accordance with documents published on the FAS website, which approved the acquisition of 100 percent of shares in the Dutch company Kuzbass Holdings. ArcelorMittal declined to comment on the deal, and the Federal Antimonopoly Service also does not indicate the value of the deal and any grounds for the sale.

Indian steel company ArcelorMittal bought two mines from Russian steelmaker Severstal for $ 652 million in 2008, when they produced 1.8 million tonnes of concentrate per year. In 2013, production fell by 677,000 tons. The balance reserves of coking coal at the Berezovskaya and Pervomayskaya mines, which are part of the Northern Kuzbass, at the beginning of 2014 amounted to 156.5 million tons.

Coal concentrate from the mines of Northern Kuzbass was used primarily for steel production at ArcelorMittal Kryvyi Rih, a subsidiary in neighboring Ukraine. But now the volumes of supplies to the ArcelorMittal Kryvyi Rih plant began to decline, as the company found more profitable suppliers. In addition, the Russian economy is suffering from the weakening of the ruble, and steel production in Ukraine is declining. Nikolay Osadchiy, consultant for Metal Expert, said ArcelorMittal had a small presence in Russia and many reasons for the sale.