Metalloinvest will continue to develop without state guarantees

Metalloinvest, owing to its stable financial performance, has almost fully redeemed the loans provided by the Bank VTB and partially guaranteed by state. The value of the state guarantees was 30.75 bn rubles. VTB decided to return the state guarantees provided to Metalloinvest by the Ministry of Finance of Russia because new Metalloinvest’s units are going to service the credit lines independently.

“State guarantees helped us maintain financial stability, complete the existing investment projects and start new ones,” said Metalloinvest Management Company CEO Eduard Potapov. “Opportune support by the Government and the Bank VTB allowed us to exit recession and strengthened the Company.” He also highlighted that “state guarantees were very effective as a mechanism for supporting the economy. Today, Metalloinvest demonstrates stable financial performance and has all the resources necessary to develop production and service corporate dept independently”.

In September 2009, a state commission under the chairmanship of First Deputy Prime Minister Igor Shuvalov, established to stabilize the economy as part of the government anti-crisis program, approved state guarantees to Lebedinsky GOK, Mikhailovsky GOK, OEMK and Ural Steel totaling 30.75 bn rubles. It partially secured credit lines from the Bank VTB, which were opened in September 2009 and totaled 61.5 bn roubles.