Moe confident about Evraz despite sanctions against shareholder

Premier Scott Moe isn’t concerned about Evraz Regina being affected by new sanctions against one of its parent company’s shareholders.

On Thursday, Roman Abramovitch was added to a list of Russian oligarchs under sanctions from the United Kingdom. Abramovitch has several holdings there, including his stake in Evraz PLC, which is a parent company of Evraz North America.

He’s the largest shareholder and together with two other oligarchs owns more than 57 per cent of the company’s shares.

As a result of the sanctions, Evraz is no longer being traded on the London stock exchange.

However, Moe isn’t concerned about the Evraz steel mill’s operations in Regina, saying it’s disconnected from the global and European operations the U.K. government is looking at.

“I have full confidence that the mill here in Regina and the mills in Canada and likely across North America are going to continue their operations as per usual,” Moe said Thursday.

Moe said steel from the North American mills isn’t going to Russian military equipment, but did admit there is a larger conversation about where the company’s profits are going.

Moe doesn’t foresee any job losses at Evraz in Regina and, in fact, believes the company’s future is bright in Regina because Moe says it can play a large role in Canada’s economy.

“We’re seeing on full display what can occur when countries — European countries and others — don’t pay attention to energy security,” said Moe.

So what Moe wants is for North America to concentrate on using energy produced at home, including in Saskatchewan.

“We need energy security (and) we need food security. Ultimately we need to provide our economic sovereignty, not just in Canada but in North America, and one tremendous step in finding our way to insulate ourselves from what we see happening in Europe and Ukraine is to start construction on some of these key pieces of pipeline infrastructure,” said Moe.

Moe has often touted Saskatchewan’s oil as some of the most sustainable in the world.

NDP Leader Ryan Meili also recognizes the large part Evraz plays in Regina’s economy, given the hundreds of people who work there.

“But it is also currently owned, nearly 60 per cent, by some of the people who are funding Vladimir Putin’s illegal war in Ukraine. So if we’re going to be helping Ukraine, we need to start cutting off those funds that are going to the very people that have benefited from his kleptocracy in Russia, the very people that are benefiting from that illegal invasion of a sovereign nation,” said Meili.

And as such, Meili said it’s clear to him that the ownership of Evraz needs to change. He admits it’s a complex proposal, in part because there are assets across North America. Meili said it has to be a discussion with Canada at the table.

“If we’re just saying business as usual despite Abramovitch being sanctioned, then I have real concerns about what that business as usual looks like,” said Meili.

The NDP leader said Saskatchewan could have a role to play in the ownership. He said he could see a role for the Crown Investments Corporation and Saskatchewan government to make sure the transfer of ownership happens in a good way. He said there’s a discussion to be had on how that would work.

“Do you own it for a period and then discharge it, do you own a controlling share and then sell it, or do you own it and then continue to own it?” asked Meili.

Meili said the transfer of ownership needs to happen so that the mill continues to operate and people working at Evraz today keep their jobs.