Metinvest B.V. (Netherlands), the parent company of an international vertically integrated mining and metals group of companies, has suspended almost all strategic investment projects due to the war in Ukraine.
Source. This was reported by Interfax-Ukraine.
"Almost all current strategic investment projects have been suspended, with the exception of the construction of a new block of mine No. 11 at Pokrovsk-Ugol to maintain production volumes," Metinvest said in a presentation at the 14th annual J.P. Morgan Global Emerging Markets corporate conference, which takes place on Monday.
It is specified that although decarbonization initiatives (reduction of carbon emissions) were postponed due to the war, the strategy for iron ore assets has not changed, and the group remains focused on high-quality products.
"Strategic priorities will need to be comprehensively reviewed after the end of the active phase and the impact of the war will be assessed. The group is looking for opportunities to improve synergies between its Ukrainian and foreign assets as they are vertically integrated," the company's future plans after the war are explained.
It was also reported that Metinvest B.V. continues to fulfill its debt obligations, in particular to bondholders, despite the war in Ukraine.
"Metinvest continues to service its loans and borrowings, including scheduled bond repayments. In 2022, the group repurchased and then immediately canceled about $48 million of various bonds, including $24 million of 2023 bonds through a tender offer," Metinvest said in a presentation.
At the same time, it is added that on July 29, 2022, a number of Metinvest B.V. subsidiaries were designated as unrestricted subsidiaries, according to the terms and conditions for the purposes of each bond.
These included Ilyich Iron and Steel Works of Mariupol and Azovstal, which resulted in the automatic termination of their guarantees.
It is also reported that the war in the country has provoked a downward revision of credit ratings for Ukraine and Ukrainian companies, including Metinvest.