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)
June 26, 2016
Six killed, seven hospitalized after minibus crash in Tatarstan
Russia, China sign JV agreement to create wide-body aircraft
Russia could supply half a million tonnes of grain to China in 2016, considering meat exports
Rosneft expects ChemChina to complete entry in VNKhK in coming months
AIIB chief confirms allocation of Vice President post for Russia, no candidate approved yet
Relations with China a priority, parliamentary dimension crucial to developing them - Putin
RUSSIA AND FSU GENERAL NEWS
June 25, 2016
Moscow, Beijing successfully accommodate each other's interests - Putin
Novak says too early to estimate Brexit's impact on future privatization in Russia - "Let's wait and see"
Most Russians convinced that doping scandal not to ruin Russian team's participation in Rio Olympics - poll
CORRECTED: Works continue as planned to build S-350 air defense missile system, to be completed in due time - Russian Defense Ministry
Works continue as planned to build S-500 air defense missile system, to be completed in due time - Russian Defense Ministry
WORKS CONTINUE AS PLANNED FOR S-500 AIR DEFENSE MISSILE SYSTEMS, ALL TO BE COMPLETED IN DUE TIME - RUSSIAN DEFENSE MINISTRY