The Russian state corporation bank for development and foreign economic affairs Vnesheconombank (VEB) has announced that it has opened financing to Amurmetall, the only steel producer in Russia's Far East region, by providing a first tranche equal to Ruble 383 million (about $13 million).
"Taking into account Amurmetall's difficult financial situation, the acute shortage of working capital that threatens to completely shut down the plant, VEB considered it expedient to extend the first tranche for the borrower to fulfill all its obligations under the credit agreement (signed with Amurmetall in December 2009)," reads the bank's statement.
The financing is designed to complete the investment program and restore Amurmetall's financial sustainability.