Abramovich takes £250m hit on Evraz

BILLIONAIRE Russian oligarch and Chelsea FC owner Roman Abramovich has taken a £250m hit on the value of his stake in steelmaker Evraz since the start of the Ukraine crisis.

And the firm warned it could feel the effects of any escalation in the diplomatic stand-off.

Violence in the Ukraine, and Russian president Vladimir Putin’s annexation of the Crimea region, have depressed the value of companies in both countries.

Shares in the London-listed firm, which has operations in both Ukraine and Russia, have declined by nearly 50pc since trouble flared in Kiev in late November.

The fall has shaved £246m off the personal fortune of Abramovich ( pictured), an ally of Putin’s, because he owns 31pc of the company.

Evraz said yesterday that operations had ‘not been adversely affected’ by turmoil in Ukraine, and produced financial results that backed up the statement, despite increased losses. But Evraz admitted the steelmaker could not be certain any further violence would not hurt operations, given that the firm derives 7pc of revenue from Ukraine.

‘There is a risk that, if these events were to escalate, there could be an impact on Evraz’s operations in the country,’ a spokesman said.

‘In addition, Evraz may be affected by government sanctions if they are broadened from the current level.’

Pre-tax losses widened to £366m from £117m last year, which the company blamed on ‘another challenging year for the global steel and coal mining industries’. The steel industry relies on industrial growth and has been hit by stagnation in European economies and fears of a slowdown in China’s industrialisation. But Evraz said 2014 had ‘started mildly positively in most regional markets’. Shares in the company gained 3p to 81.95p on the update.