VTB Bank has granted a RUB 2 billion long-term loan to Joint Stock Lena United River Shipping Company aimed at financial recovery of the enterprise.
The funds are allocated under the agreement signed between VTB Bank and the Government of the Sakha (Yakutia) Republic. The document stipulates that in 2011, the Yakutia Government will provide an additional bailout package to the company and will directly manage the turnaround process. In order to rehabilitate the region's backbone enterprise, VTB has granted resources, which, in particular, will be channeled to refinance the debts of the shipping company.
Lena United River Shipping Company is the only transportation company in the Arctic areas of the Sakha (Yakutia) Republic. The company has remained bankrupt since mid-2010.
Oleg Pinus, VTB Senior Vice President, said: “VTB decided to support the shipping industry in this challenging environment, because we understand its exceptional role in the economy of Sakha (Yakutia). It is a spectacular example of close and fruitful cooperation between the bank and the region’s administration aimed at supporting priority industries of the economy.”
Joint Stock Lena United River Shipping Company is the largest shipping company of the Sakha (Yakutia) Republic and the whole Northeastern region of Russia. It carries out passenger and cargo transportation along internal river and sea routes. The shipping company owns over 350 cargo, tow, passenger and service vessels with a total capacity of 450,000 tons.