The deal is expected to close in the first quarter of 2022.
 
“The sale of Vorkutaugol will allow us to focus on delivering our strategy to develop our steel and iron ore assets to be the leader of the future steel industry and to reduce our carbon footprint consistently,” Alexander Shevelev, chief executive of Severstal, said.
 
“Reducing our consumption of coking coal through the use of the latest technologies is part of our ambitious decarbonization program. We expect to accelerate this in the future, including through the use of hydrogen fuel.”
 
Vorkutaugol contributed 14.3% of Severstal’s scope 1 and 2 emissions per year. A portion of the proceeds from the sale will be used to finance projects within Severstal’s decarbonization strategy.
 
“The purchase of Vorkutaugol confirms that we believe in the prospects for the development of the Russian coal industry and the great potential of the Arctic zone,” Andrey Tyasto, chief executive of Russkaya Energiya, said.
 
“It is important for us that Vorkutaugol maintains and enhances the best practices in corporate culture, social guarantees and industrial safety that have been developed as part of Severstal. We thank our partner for their confidence in us and look forward to further fruitful cooperation.”
 
Read the full press release here.