Gazprombank plans to sell a 34% stake in the Elga coal project to metals and mining group Mechel for slightly over 30 billion rubles, a source familiar with the situation reported.

He also said the deal should be closed by January 20, 2020.

On September 30 a spokesman for Mechel said that the company accepted Gazprombank’s offer and would buy 34% in the project from the bank.

Mechel holds 51% in Elgaugol, the holder of the license to develop the Elga field. Gazprombank bought 49% in the company from Mechel in 2016 in the framework of restructuring of a 34.3-billion ruble debt.

Gazprombank said in August that it had received an offer of purchase of a 49% stake in the Elga coal deposit from a company. An official of the Federal Antimonopoly Service said that an application for clearance of the deal was sent by A-Property, a company of co-founder of telecom operator Yota Albert Avdolyan, while Mechel had the right to buy out the stake of the bank in a month. (Prime/Ukrainian metal)

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