Companies linked to the sanctioned Russian oligarch, Roman Abramovich, have raised billions of euros through entities listed on the Irish bond market.
The value of Dublin-registered bonds has fallen sharply since the Putin government invaded Ukraine, with prices nearing 30 cents on the dollar indicating the level of risk now associated with them.
In announcing its decision on Thursday to impose sanctions on the owner of Chelsea football club, the British government cited Mr Abramovich’s interests in London-based steel and mining company Evraz plc, which operates mainly in Russia .
He also cited his interest in Russian mining and smelter company Norilsk Nickel.
Both companies have raised billions of euros over the past few years through bonds listed on the Irish Stock Exchange but mostly traded outside Ireland.
In explaining its reasons for sanctioning Mr. Abramovich, the government in London linked Evraz to the potential supply of steel for Russian tank production.
He said the owner of the Chelsea club “is or has been involved in the destabilization of Ukraine and undermines and threatens the territorial integrity, sovereignty and independence of Ukraine, through Evraz plc, a steel company and mining in which Abramovich has a significant interest and over which Abramovich has effective control.
He said the company had “potentially” been involved in “supplying steel to the Russian military that could have been used in tank production.” The company has previously denied this is the case.
Trading suspended
Trading in Evraz plc shares on the London Stock Exchange was suspended on Thursday as authorities sought to clarify the effect of the sanctions on the company, which is not itself sanctioned.
Evraz plc raised $750m (€678m) through Dublin-listed bonds in 2017, and another $700m two years later. The bonds mature in 2023 and 2024 respectively.
A Dublin-registered special purpose vehicle (SPV) called MMC Finance DAC had bonds worth $3.75 billion listed in Dublin at the end of 2020, according to its last filed accounts.
The Dublin SPV was formed in 2012 to raise funds for Norilsk Nickel, which is not a sanctioned company.
The last listing of MMC Finance bonds, for $500 million, was in 2020, according to the accounts.
The accounts show that in 2020 the company’s auditor was KPMG, Dublin, its law firm was Arthur Cox and Cafico International, Dublin 2, provided directors and secretarial services to the company.
Last week, Arthur Cox announced that it was suspending work for Russian capital markets clients. Its website listed Norilisk Nickel as one of the Irish law firm’s Russian clients.
KPMG said it exists in the Russian market. A spokeswoman for Cafico International said it had no comment.
