VTB Bank has issued a long-term RUB1.2 billion loan to BVK, a Russian-Italian joint venture that is part of Konar Group. The funds will go toward the company’s investment in the construction of a steel plant.
Konar Group’s documentary credit limit at VTB has been set at RUB 5 billion, part of which will be used to finance joint projects with Italian, Japanese and Czech companies at the Stankomash plant in Chelyabinsk. These projects will help implement an import substitution plan, aimed at launching local content based production in the city.
“Providing a long-term development loan to this unique company in Russia was an interesting project, which VTB has successfully realised,” said Mikhail Oseevskiy, Deputy President and Chairman of VTB Bank Management Board. “By investing significant resources in innovative production, VTB helps strengthen Russia’s positions in the domestic and world markets.”