The Russia-based steelmaker’s Severstal Ventures unit is shutting down amid geopolitical crisis-induced sanctions.
Russia-based steel and mining group Severstal is ceasing its corporate venturing operations and is set to shut down its Severstal Ventures subsidiary, Global Corporate Venturing has learned.
Western economies including the United States and the European Union have placed sanctions on Severstal and other Russia-based businesses and individuals, as a result of the ongoing Russian invasion of Ukraine.
Severstal Ventures’ portfolio companies are mostly located in North America, including Modumetal, Arcanum Alloys and Airborne in the US and Ekona Power headquartered in Canada.
The unit has also made limited partner commitments to venture capital firms Pangaea Ventures and Chrysalix Venture Capital, based in the US and Canada respectively.
The current sanctions mean the corporate can no longer sell its stakes in its portfolio companies, but Severstal Ventures is supporting them as much as it is able, according to general manager George Gogolev.
Global Corporate Venturing named Severstal Ventures the new entrant of the year in 2019, the year after it was formed. Multiple team members have subsequently featured on various GCV awards lists, including Gogolev, who was part of the Powerlist in 2020 and 2021.
