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 firstname.lastname@example.org)
March 03, 2015
Atomenergomash boosts order book 51% in 2014 to 227.7 bln rubles
Russian, Belarusian premiers conferring on trade, economic cooperation
MOSCOW IS NOT GOING TO PUBLISH LISTS OF FOREIGNERS BANNED FROM TRAVELING TO RUSSIA - RUSSIAN ENVOY TO EU
Navalny brothers can't be amnestied regarding Yves Rocher case - court (Part 2)
LUKOIL CONFIRMS PLANS TO PAY HIGHER 2014 DIVIDEND - FEDUN
Lukoil long-term debt repayment to peak at $3.2 bln in 2018
Russian regional budget revenues down almost 5% - Siluanov
Lukoil gets $3.6 bln in cost recovery, $66 mln in remuneration fee from West Qurna-2 in Iraq
Mexico's Interjet confirms option to supply 10 SSJ-100 planes - Sukhoi
Poroshenko, Tusk discuss Donbas situation (Part 2)
Navalny brothers can't be amnestied regarding Yves Rocher case - court
Moscow heat provider MIPC losses narrow 14% in 2014 to 6.85 bln rubles (Part 2)
Moscow United Electric Grid Co earnings plummet 29% to 8.2 bln rubles in 2014 (Part 2)