RUSSIAN steel giant Evraz saw its profits fall by 99.5 per cent in the first half of the year after sanctions were slapped on the firm in May and demand for its products dried up.
In an update yesterday, the firm said that net profits totalled $6m (£4.9m) in the six months to June, down from $1.2bn in the same period last year.
Core earnings, however, rose to hit $2.5bn due to higher coal prices.
Evraz has been rocked by sanctions and governance issues in the wake of war in Ukraine, with the UK sanctioning its part-owner Roman Abramovic and causing a mass boardroom resignation.
"Recent geopolitical tensions have given rise to significant corporate governance and operating challenges for Evraz," chief executive officer, Aleksey Ivanov, said.
"On top of that, strong rouble, declining demand for our products, and increased competition on Evraz's traditional markets present additional headwinds."
(c) 2022 City A.M., source Newspaper