Roman Abramovich, Russia's richest man and owner of football champions Chelsea, is in talks to buy into steelmaker Evraz, a company official said yesterday.

An industry source and the Russian media said about 40 per cent of Evraz shares could change hands in a deal worth nearly two billion pounds which could be announced as early as this week.

The Evraz official, who spoke to Reuters on condition of anonymity, did not give any details of the deal.

"Big events can happen this week," an industry source said earlier. "It could be... about 40 per cent."

The news comes just three days after the announcement that steel giant Arcelor has agreed to buy Russia's Severstal (to create the world's largest steel maker in a deal that would thwart Mittal Steel's bid for Arcelor.

Analysts and industry officials have said that deal could trigger consolidation in the global steel sector.

Vedomosti business daily said Mr Abramovich had suggested that Alexander Abramov, who owns 59 per cent of Evraz, Russia's largest steel producer, sell his shares last year. Another large Evraz shareholder is Alexander Frolov, with about 28 per cent.

In an interview with Reuters late last week, Mr Abramov said the Severstal-Arcelor deal would accelerate consolidation in the sector, with local firms getting together and Russian firms continuing to expand abroad.

He said owners were already in talks with each other.

Mr Abramovich is no novice in the metals sector, having gathered aluminium assets into industry giant RusAl before selling out to partner Oleg Deripaska in 2004.

Mr Abramovich, rated by Forbes magazine as the world's 11th wealthiest man with $18.2 billion, last year sold his 72 per cent stake in oil company Sibneft to Russia's gas monopoly Gazprom last year for more than $13 billion.

Analysts said that after the Sibneft deal Mr Abramovich had more than $10 billion in liquid financial assets.