The Russian government will provide state guarantees to Russian steel producer Amurmetall for the securing of a loan of Ruble 3.3 billion (approx. $102.7 million) required for the replenishing of its working capital and for finalizing its investment program. The decision was taken by Russian Prime Minister Vladimir Putin during his visit to the FarEastern Russian city of Komsomolsk-on-Amur, located in the Khabarovsk region.
Amurmetall has been judged to be solvent and to have realistic plans for overcoming the crisis, presidential plenipotentiary representative to the Far Eastern federal district Viktor Ishayev stated.
According to Mr. Ishayev, during recent years Amurmetall has been investing its profits and loans in the modernization of its production facilities. He went on to say that currently the mill is one of the most up-to-date Russian steelmakers, having an annual capacity of more than two million mt of liquid steel per year. Currently, Mr. Ishayev said, Amurmetall requires Ruble 1.5 billion (approx. $46.7 million) to replenish its working capital and Ruble 1.8 billion (approx. $56 million) to finalize its investment program.