FARRELL, Pa. - The possible ripple effect from U.S. sanctions against Russia is concerning for a city that is home to a Russian steel company.

NLMK has relied on steel stabs to make its products, including its cold-rolled steel. Depending on which suppliers NLMK is using for its raw materials right now, sanctions could have an impact.

Russian slab exports have varied due to U.S. tariffs according to commodity market analysts.

Chair of the School of Business at Westminster College Dr. Bob Badowski believes sanctions against Russian steel are a definite possibility.

"Probably what will happen if we end up sanctioning Russia in that area, they won't be getting their shipments anymore, because it won't be legal for them to do," Badowski said.

"So they'll have to try to find other sources for their raw materials."

An NLMK company rep tells 21 News it has about 600 workers employed. They would not comment on potential concerns over U.S. Russian sanctions on steel.

NLMK is one of Farrell's top three employers and one of Russia's largest steel companies.

"This event in the Ukraine and Russia is not the best timing for this as we struggle to try to move out of Covid-19," Ben Prescott said, city manager of Farrell.

Farrell had to weather a drop in sales and property tax revenue during the 2020 and 2021 covid-19 pandemic, along with a months-long strike at NLMK, which Prescott says hurt the city 'deeply financially'.

"Currently NLMK has reported that operations are going to continue as normal, so they haven't seen any change currently to their operational status- subject to change of course as conditions change as well," he said

Badowski says changes or disruptions in supply chains would carry challenges as switching to another supplier, like Brazil, would take time.