VTB Bank and OJSC Mechel have singed a long-term mutually rewarding Cooperation Agreement aimed at implementing perspective projects and developing programs of the leading Russian mining and metal company.
For VTB, the Agreement was signed by Andrey Kostin, VTB Chairman and CEO, for Mechel - by Igor Zyuzin, CEO and Director.
The Agreement is based on the long positive history of the cooperation between VTB and Mechel, which started in 2001, and also on mutual interest of the parties in further development of partnership relations.
Under the Agreement, VTB will be invited as a credit institution to finance current and investment activities of OJSC Mechel, and to service other financial operations. VTB is to act as a project advisor on developing and improving international and internal settlements and introducing modern technologies of financial resource management to increase the efficiency of Mechel performance.
Developing partnership relations with metallurgical enterprises, which are among the priority lines of VTB business, the Bank strives to implement a complex approach and meet customer demands at all stages of their business growth and diversification, offering a wide range of banking products and services. Total volume of documentary credit limits, set by VTB to ferrous and non-ferrous metallurgical enterprises, is exceeding RUR 315 billion.
OJSC Mechel is one of the leading Russian companies. Its business consists of three segments: mining, metallurgy and energy. The company unites producers of coal, iron ore concentrate, nickel, steel, rolled products, heat and electric power. Mechel products are sold in the Russian market and abroad. Mechel is the first and only issuer in Eastern Europe and Russia among mining and metallurgical companies that placed its shares in the New York stock market. Over the nine months of 2007 Mechel's net profit reached USD 706 million, and consolidated profit amounted to USD 4.6 billion.