The Russian mining and steel producing group Mechel has announced that it has secured Ruble 15 billion (approx. $560 million) in credit lines from Russia's second largest bank in terms of assets, VTB Bank.
The one-year credit lines will be used by Mechel to fund operations at its coal mining subsidiaries Yakutugol and Southern Kuzbass Coal Company, and at its steel producing subsidiary Chelyabinsk Metallurgical Plant.
According to the agreement on long-term mutually beneficial cooperation signed between Mechel and VTB Bank in April 2008, VTB Bank will be engaged as one of the leading institutions in financing Mechel's current investment activities and in servicing its financial operations. VTB Bank is also expected to act as a consultant to Mechel on projects related to the further development of its international and domestic accounts and on the implementation of modern financial resource management technologies designed to enhance Mechel's performance.