Rostekh’s enterprise decides not to buy plant, controlled by Mechel

The Volgograd plant Krasny Oktyabr, which is controlled by the state-owned corporation Rostekh, has dropped out of talks on the purchase of pre-bankrupt Zlatoust metallurgic plant (ZMZ), a source, who is familiar with the negotiations, reported to the ITAR-TASS.

According to him, the Volgograd enterprise was ready to pay ZMZ’s debts in the amount of about 2 billion rubles, but Mechel insisted on payment of 1 billion rubles more for control over the enterprise.

Another informed source confirmed the information on breakdown of negotiations on ZMZ acquisition.

Earlier the Governor of the Chelyabinsk region, Mikhail Yurevich called the stand of the Mechel’s Management on ZMZ “inconsistent”, accused it of disruption of talks on the plant's acquisition.