The Volgograd branch of Russia's state-owned VTB Bank and Russian pipe producer Volzhsky Pipe Plant, a subsidiary of TMK Group, have signed a general credit agreement. In particular, within the scope of this agreement, VTB Bank has opened an irrevocable letter of credit worth more than $25 million.
The general agreement provides for the financing of the foreign trade activity of Volzhsky Pipe Plant by VTB Bank in 2011-2012 with a total amount of Ruble 2.5 billion ($89 million).
VTB Bank and Volzhsky Pipe Plant have been
cooperating since 2002. Since 2006 VTB Bank has had a role in financing the foreign trade activity of Volzhsky Pipe Plant.