Russian steel company Evraz has completed the first stage of its acquisition of production assets in the Ukraine.

For a cost of over US$1bn, Evraz has closed the acquisition of 51.4% of shares of Palmrose Limited, a Cyprus-based holding company for a number of Ukrainian assets, including a 99.24% share holding in the Sukhaya Balka iron ore mining and processing complex; a 95.57% shareholding in the Dnepropetrovsk Iron and Steel works; and sharing holdings in three coking plants; and 93.83% of shares outstanding of Dneprodzerhinsk coke chemical plant.

Evraz transferred the amount payable in favour of the seller in December 2007, and the next stage of the transaction that implies issuance of new shares in Evraz is pending legal requirements in Luxembourg, and expected to be finalised shortly after that.