Moscow, Russia – February 10, 2022 – Mechel PAO (MOEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, reports early repayment of its obligations to VTB Bank regarding its dollar-denominated loan.

Southern Kuzbass Coal Company, which is part of Mechel Group’s mining segment, acted as the debtor on this loan. As part of the restructuring conducted in 2020, the outstanding 341-million-dollar amount on this loan was scheduled to be repaid by the end of April 2022. In early February, Southern Kuzbass Coal Company repaid the outstanding amount on this loan in full ahead of schedule. As a result, part of the collateral pledged to VTB Bank will be released.

“Mechel’s management has repeatedly noted that repayment of our loan obligations are a top priority for us. On behalf of our company, I would like to offer our deepest gratitude to our partners at VTB Bank for these fruitful joint efforts. Repaying this debt is yet another important step in improving the Group’s financial balance. I am sure that this will help us secure stable operations at Mechel’s facilities and support social stability in regions of our presence,” Mechel PAO’s Chief Executive Officer Oleg Korzhov commented.

“Mechel Group is servicing its debt to VTB Bank promptly and in full. Due to rising steel prices, as well as the increased prices for coking and thermal coal, the company is demonstrating a major improvement in its financial results. VTB Bank remains Mechel’s reliable partner and is interested in its stable operations and further development,” First Deputy President and Chairman of VTB Bank Management Board Yuri Soloviev said. 

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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com