EVRAZ Rocky Mountain Steel explains relationship with Russian oligarch
PUEBLO, Colo. (KRDO) -- As the devastating invasion of Ukraine continues, Evraz North America (NA) explains to 13 Investigates its relationship with a Russian oligarch.
Since Russia began its campaign in Ukraine, the United Kingdom government has frozen assets for several individuals suspected of financially aiding Russian President Vladimir Putin. This includes Roman Abramovich, the Russian billionaire, and the owner of more than 28% of Evraz PLC's total shares.
Evraz PLC, headquartered in London, purchased the steel mills in Pueblo, or Evraz Rocky Mountain Steel, back in 2007. Today, Rocky Mountain Steel employs more than 1,300 people according to Evraz NA, a wholly-owned subsidiary of Evraz PLC. Evraz NA currently oversees the operations at the Pueblo steel plant.
Annie Stefanec, the Director of Communications for Evraz NA, says they operate independently from the parent company Evraz PLC in London throughout all channels.
"Including operations, procurement of raw materials, and our supply chain," Stefanec told 13 Investigates. "Our financing is North American, and our people are North American. We are a North American company."
Stefanec says Evraz NA does not, has not, and will not provide steel for the Russian military, and the revenue generated here in the United States stays in North America. She says those revenues are reinvested back into North American facilities.
Construction is currently underway for a $700 million rail mill at Evraz Rocky Mountain Steel, and a recently finished solar panel project makes the mills in Pueblo the first steel plant in the world to be powered almost exclusively with solar power.
Stefanec tells 13 Investigates that Evraz Rocky Mountain Steel received an initial financial investment for the new rail mill from their parent company, Evraz PLC, in 2017. The spokesperson says they are not currently receiving any additional funding for the project. A report from CNN says the rail mill project will receive at least $84 million from the city and state governments, while there will be certain requirements including retaining jobs and paying higher property taxes in the future.
Evraz North America says Abramovich certainly has a financial interest in the success or failure of the steel plant in Pueblo due to his holdings, however, it doesn't go further than that. Abramovich faces sanctions from the UK, Canada, and the EU. The man accused of being a "Russian oligarch" is not sanctioned in the United States.
"Mr. Abramovich is a shareholder in a company that is publicly traded in London," Stefanec said "He has no influence over the business decisions we make day-to-day."
Charles 'Chuck' Perko, the president of Local 3267 United Steel Workers, represents clerical, technical, and plant protection employees at Evraz Rocky Mountain Steel. He says it is pretty rare if they ever discuss what is going on within Evraz PLC.
"Because of the financial separation between us and the rest of the company we are not in a situation where what's happening with the larger company is really affecting us," Perko told 13 Investigates.
With a large Evraz sign out front of the steel plant in Pueblo, Perko is fearful of public perception of the stigma around the name 'Evraz' following the Russia-Ukraine conflict. He said he's also afraid people will use this to hurt Pueblo's business.
"To try and hurt the company right now is hurting one thousand southern Colorado workers," said Perko. "I would hope that people will understand we have nothing to do with what's going on over there."
