Credited metallurgical companies UC Rusal, Mechel and Evraz apply to Medvedev to help – they need state guarantees for restricting of bank debts

Today the most credited Russian metallurgical companies – UC Rusal, Mechel and Evraz will meet Dmitry Medvedev and will ask him to help. As the Vedomosti has got to know, on Monday the Prime Minister Dmitry Medvedev will receive metallurgists and their creditors in Gorki-9 to make a decision how to restructure the industry and stimulate its development. The Minister of Industry Denis Manturov and the Minister of Economic Development Alexei Ulyukaev will be speakers. A representative of the Ministry of Economic Development confirmed the participation of Ulyukaev and the Ministry of Industry and Trade declined to comment.

The draft decision of this meeting says that the Ministry of Economic Development, Ministry of Finance and the Ministry of Industry and Trade must prepare proposals on state guarantees to refinance the debt of metallurgical companies and to fund a part of their costs for payment of interests from the budget before December 23 of 2013 (in 2012, Mechel paid $669 million for loan service, UC Rusal - $610 million and Evraz - $645 million). The Ministry of Economic Development’s representative fears that the interests funding can lead to increase of the credit burden of metallurgical companies, because they will be able to afford new loans, so this is a subject for discussion.

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