Glencore is reviewing its stakes in two Russian companies
BNN Bloomberg
Glencore, the world’s biggest commodity trader, followed some of the world’s largest companies in reviewing its business ties with Russia as the fallout from the invasion of Ukraine intensifies across global commodities markets.
Glencore Plc, the world’s biggest commodity trader, followed some of the world’s largest companies in reviewing its business ties with Russia as the fallout from the invasion of Ukraine intensifies across global commodities markets.
While Glencore stopped short of exiting its investments, the company said it was reviewing its shareholdings in two of Russia’s biggest companies as well as its wider trading operations in the country. It’s a dramatic turn for a company that has long been comfortable operating in the most difficult jurisdictions and whose former chief executive officer was awarded an Order of Friendship by President Vladimir Putin.
The list of companies cutting ties or reviewing their operations has swelled since the weekend as foreign governments ratchet up sanctions against Russia and pile pressure on businesses to cut ties. Already oil majors BP Plc and Shell Plc have announced plans to sever connections with Russian partners after coming under growing pressure from the U.K. government.
Glencore currently owns a 10.55 per cent stake in En+ Group International PJSC, the controlling shareholder of aluminum giant United Co. Rusal International PJSC. It also owns a small stake of less than 1 per cent in Russian oil major Rosneft PJSC. The fair value of the investments at the end of 2021 was US$789 million and US$485 respectively, Glencore said in its results statement last month.
“We have no operational footprint in Russia and our trading exposure is not material for Glencore,” the company said in a statement Tuesday. “We are reviewing all our business activities in the country including our equity stakes in En+ and Rosneft.”
The company also said it condemned the Russian government’s actions against the people of Ukraine.
