OREANDA-NEWS. Metinvest B.V., the parent company of a vertically integrated group of steel and mining companies (jointly referred to as “Metinvest” or “the Group”), today published a trading update for the 12 months ended 31 December 2013.

The information in this press release has been prepared based on preliminary financial results. Intragroup transactions have been eliminated in consolidation. This announcement does not contain sufficient information to constitute a full set of financial statements. The following preliminary results may differ from financial statements prepared in accordance with International Financial Reporting Standards (IFRS). The numbers in this press release have not been audited or reviewed.

Metinvest B.V. publishes consolidated financial statements prepared in accordance with IFRS for the six months ending 30 June and for the year ending 31 December.

Given the current events in Ukraine, Metinvest's management reiterates the Group's commitment to open lines of communication with investors and all other stakeholders. In addition to our usual disclosure of our preliminary financial results, we would like to offer the following information.

All of Metinvest's production and other assets in Ukraine continue to operate as normal and without disruption, including those located in eastern and south-eastern Ukraine.

The Group continues to ship products from Ukrainian ports. All export iron ore shipments go from the Odessa and Yuzhniy ports; bulk steel products are shipped from the Mariupol, Odessa, Mykolaiv, Zaporizhia and Avlita (Sevastopol) ports. Avlita accounts for around 7% of Metinvest's steel exports.

Metinvest believes that the Russian market for its products continues to represent significant long-term growth opportunities and is committed to customers in all of its markets. At the same time, Russia accounted for 8% of total revenues in 2013 (12% in 2012), limiting the Group's immediate exposure to any possible disruptions of trade flows.

Metinvest's management remains concerned about the possible impact of any devaluation of the national currency (hryvnia) on living standards. At the same time, the Group itself has not been directly harmed by the devaluation and the effect on margins is positive, given that revenues are denominated primarily in foreign currencies, mostly dollars, and costs in hryvnias. For third-party analysis, see the special comment on Ukrainian corporate issuers published by Moody's Investors Service on February 28: “Hyrvnia Devaluation Would Have Positive or Neutral Effect on Most Rated Issuers”.

To date, capital and currency controls (including the recent regulations nos. 48 and 49) introduced by the National Bank of Ukraine have not affected Metinvest, as the Group has historically changed more than 50% of its export revenues into hryvnias to cover local costs.