MOSCOW, April 21. /TASS/. Italy’s Marcegaglia Carbon Steel signed a sale and purchase agreement for 100% in Sia Severstal Distribution (SSD), a Latvian subsidiary of the Russian mining and metals company Severstal, Marcegaglia said on Friday.

"The closing of the sale agreement was conditional on obtaining all authorizations and clearances from both the Latvian government and the relevant national and European authorities," the Italian company said. "The amount was not paid to the seller, but it will remain 'frozen' in a special escrow account" as long as EU sanctions remain effective, Marcegaglia noted. The new name of the company is Sia Marcegaglia Baltics.

EU sanctions rendered operations of Severstal’s distribution arm in Europe impossible, a spokesman of the Russian company said.

"Despite these restrictions viewed by us as unjustified and illegal, it is important for us that our colleagues from SIA Severstal Distribution keep jobs and assets developed by us for many years continue operations. We are therefore happy to hand them over to a new owner," the Severstal’s spokesman noted. Severstal does not disclose the deal price.