September 05, 2014 11:48
RZD cannot receive NWF funds to purchase Mechel railway line - Finance Ministry
MOSCOW. Sept 5 (Interfax) - The Russian Finance Ministry said it was impossible to give Russian Railways (RZD) (MOEX: RZHD) funds from the National Welfare Fund (NWF) to purchase a railway line from Russian mining and steel company OJSC Mechel (MOEX: MTLR), Russian newspaper Vedomosti cited a ministry representative as saying Friday.
There will also not be any government guarantees, the representative said, adding that RZD will pay Vnesheconombank (VEB) using "synchronized funding" from banks that are Mechel's largest creditors.
RZD President Vladimir Yakunin told journalists in Yekaterinburg Thursday that the possibility of allocating funds from the NWF was being considered as a way for RZD to purchase the Mechel railway line to the Elginskoye field.
"A current variant is using bridge money from the National Welfare Fund followed by a return guaranteed by the state. That is, the government must ultimately give us funds for charter capital so that we can pay for this since our financial standing and the size of the investment program do not alone allow for these projects to be completed," he said on the sidelines of the Coordinating Council on Trans-Siberian Transportation (CCTT) forum.
RZD supports the actions of the government in every way possible to stabilize Mechel's economic situation, Yakunin said, adding that the company was ready to participate in this. Asked whether the current price of 70 billion rubles was being considered for the railway line, he said: "At least now we are talking about this [amount of] money."
A Mechel representative confirmed the fact that talks took place on selling the railway line, but did not give the newspaper further comment.
(Our editorial staff can be reached at email@example.com)
November 25, 2015
MICEX and RTS Indexes at 15:00 MSK
NATO actually covering up for Turkish Air Force that downed Russian plane in Syria
Restoration of GDP growth to happen through growth in reserves, and not demand - CB department head
LAVROV: RUSSIA WILLING TO PROVIDE PARTNERS WITH SU-24 FLIGHT'S READOUT DATA BEFORE IT WAS ATTACKED
Moscow expects Ankara to compensate damage caused by destruction of Sukhoi-24 - Matviyenko
Turkish proposal to create buffer zone in northern Syria may try to protect terrorist infrastructures - Lavrov
Naftogaz to receive Russian gas only for transit to Europe, ready to resume purchases if needed (Part 2)
LAVROV ON HOLLANDE'S INITIATIVE TO CLOSE TURKISH-SYRIAN BORDER: IT'S THE RIGHT PROPOSAL
LAVROV: KERRY PROPOSED MEETING ON SYRIA IN NEAR FUTURE, BUT WE SEE NO SENSE IN DISCUSSING ASSAD'S FATE AGAIN
CONTINUATION OF WORK OF INTL GROUP IN SUPPORT OF SYRIA DOUBTFUL WITHOUT APPROVAL OF LISTS OF SYRIAN OPPOSITION IN NEGOTIATIONS WITH DAMASCUS AND LIST OF TERRORIST GROUPS - LAVROV
Russia will seriously re-think its relations with Turkey in light of attack on Sukhoi Su-24 - Lavrov
LAVROV: NORMALIZATION OF RELATIONS WITH TURKEY POSSIBLE ON CONDITION THAT ANKARA ACKNOWLEDGES THAT INCIDENTS SIMILAR TO THAT INVOLVING SU-24 ARE ABSOLUTELY UNACCEPTABLE
JCCC: UKRAINE IMPOSED 'SILENCE' REGIME ALONG ENTIRE DIVISION LINE FROM NOVEMBER 25, 2015
Russia cannot leave Turkey's actions without response - Lavrov