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Evraz Plc (EVR)

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Tuesday 31 December, 2019

Evraz Plc

Amendment of transshipment agreement

RNS Number : 2781Y
Evraz Plc
31 December 2019


EVRAZ plc ("EVRAZ", the "Company" and together with its subsidiaries, the "Group") announces today that it has signed a Deed of Amendment ("Transaction") in relation to the Long-Term Transshipment Agreement ("LTA") between East Metals AG (the "EMAG"), a fully owned subsidiary of the Company and Nakhodka Trade Sea Port (the "Nakhodka Port") previously concluded as a part of the disposal of Nakhodka Port in May 2017.

In the Transaction, parties have agreed:

1.    to decrease rates for excess volumes of transshipped coal for 2020,

2.    to approve new rates for transshipment of steel products (including fumigation cost of dunnage for  steel products).    

Key Commercial Highlights

1.    The parties have determined and agreed on a new lower rate for excess volumes of transshipped coal.




Rates for transshipment of excess volumes of coal (exceeding agreed quotas)

US$19.0 /per metric t

US$15.0 /per metric t


New rates are comparable with the rates set by the Nakhodka Port for the third parties. This will allow EVRAZ to transship additional volumes of coal to the Far East at a lower cost. The cap for excess coal volume has not changed and remains at approximately 2.7 million metric tonnes.

2.    EMAG requested additional services from Nakhodka Port regarding the use of wooden dunnage for transshipment of steel products corresponding to the ISPM 15 standard.  Thus the parties have agreed to increase by US$1.7 the rates for  transshipment of steel products (such were disclosed in the LTA published in May 2017).


Pursuant to UK Listing Authority ("UKLA") Listing Rule 11.1.4R, Nakhodka Port is classified as a related party of EVRAZ, due to its direct shareholders also being substantial shareholders in the Company. The Transaction, therefore, constitutes a smaller related party transaction as defined under UKLA Listing Rule 11.1.10R and EVRAZ has accordingly obtained a written confirmation from a sponsor that the terms of the transaction are fair and reasonable as far as shareholders of EVRAZ are concerned.



As part of the Nakhodka Port disposal to Lanebrook Limited (EVRAZ' majority shareholder at the date of the disposal) on 3 May 2017 and which was approved by the independent shareholders of the Company on 23 May 2017, EMAG, a fully owned subsidiary of the Company, entered into a LTA with the Nakhodka Port. EMAG took the obligation to ship certain volumes of coal and steel products through the Nakhodka Port for five years at fixed rates, secured by a "take-or-pay" clause. Further details of the LTA can be found in the Shareholder Circular which is available on EVRAZ's website:

On 27 December 2018, the Board of Directors approved the first Deed of Amendment in relation to: (i) excess volume of coal and (ii) rates for such excess volumes to be added to the Tariff; these rates are subject to annual adjustment to be made by the parties though bona fide negotiations.

On 16 August 2019, the Board of Directors approved the second Deed of Amendment in relation to rates for transshipment of excess volumes of coal (exceeding agreed quotas).


For further information:

Media Relations:

+7 495 937 6871

[email protected]


Investor Relations:

+7 495 232 1370

[email protected]

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