VEB to give Russian coal to Donbass: shareholders of the Industrial Union of Donbass to be able to buy Sibuglemet

~~As the Kommersant has got to know, Russian investors, who own the controlling package of the Industrial Union of Donbass (ISD), may receive $1.8 billion from VEB for the purchase of Kuzbass Sibuglemet. The deal may have an economic reason: Ukrainian metallurgy depends on coal imports from Russia. But now coal is cheap and the participants of the market see a political factor in the transaction: the strengthening of the integration of a large enterprise in the east of the Ukraine with a Russian partner and an argument against the possible limitation of coal imports to the country.

 

Companies of ISD’s shareholders are going to attract a loan for $1.8 billion from VEB, sources that are familiar with the situation told the Kommersant. The credit will be issued for six and a half years, the recipients are Cypriot Martinley Holdings Ltd, Nabara Holdings Ltd, Vitect Services Ltd, Hayston Investments Ltd and Dawnaly Investments Ltd. In April, Evraz sold them the Czech company Vitkovice Steel for $287 million, and the Kommersant’s sources told that the buyers were ISD’s shareholders, including former co-owner of Evraz’s assets Alexander Katunin (withdrew its capital in 2004).

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