Evraz, the Russian steelmaker, fell victim to the hostile environment for the country's companies when it raised less than expected in a syndicated loan from a number of European banks.
The London-listed company, which is not on any sanctions list from the U.S. and European Union, raised $425 million, well below its $900 million target. No U.S. banks took part in the loan.
Russian companies have faced stringent sanctions from Western governments over the annexation of Crimea and the country's role in increased tensions in eastern Ukraine. This has pushed Western banks into imposing stricter rules, with some lender banks insisting firms make instant repayments if sanctions take effect.
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Evraz Chief Financial Officer Giacomo Baizini told CNBC that it was indeed "more challenging than it was in the past" for Russian companies to raise money.
He added that the target sum of $900 million had always been the company's maximum target when it came to seeking out a loan but "in fact, the $425 million does cover most of our financial needs for the next 12 months."
Earlier Wednesday the company announced that it was to sell a 34 percent stake in its Evraz Highveld Steel and Vanadium division to South African investment company Macrovest for $27 million.
