Russian steelmaker Severstal has announced that it has signed a binding agreement with Russia-based Russkaya Energiya to sell its coking coal assets, Vorkutaugol. The transaction value is RUB 15 billion ($203.25 million).
The divestment is expected to be closed in the first quarter of 2022.
According to the statement, the sale of Vorkutaugol will allow the company to focus on delivering its strategy to develop its steel and iron ore assets to reduce its carbon footprint consistently. As part of the agreement, Severstal has secured supply of raw material for the next five years, remaining a key consumer of Vorkutaugol’s coking coal.