Russian steel maker Evraz (EVR) posted an interim net profit of $1m (£0.6m), against a loss of $146m for the first half of 2013. But the group’s road to recovery is overshadowed by the political crisis on Europe's eastern border. Evraz, which is part-owned by Chelsea FC patron Roman Abramovich, said its operations have yet to be affected by trade sanctions, but management is drawing up "contingency plans" to cover a change in circumstances - whatever that entails.
Profits were held back by $147m in impairment charges, while the contribution of Evraz's coking coal business was constricted by technical issues at the Uskovskaya mine and a temporary shutdown at the Yesaulskaya pit. But the main drag on profits remains the problem of excess steel making capacity. Many plants in Europe and the US are struggling with the combination of low utilisation rates and inherently high fixed costs - hardly a recipe for margin expansion.