Mechel has asked the Vice Prime Minister Dmitry Kozak to help return 50% of funds invested in the Donetsk Electrometallurgical Works (Ukraine).
The company received DMEZ in 2009 under an agreement with A1. In 2 years Mechel bought the plant for $537 million with the funds borrowed from Alfa-Bank. The company had to pay the debt by installments until 2018. In the development and modernization of DMEZ Mechel has invested some 1 billion rubles.
In 2012 DMEZ operation was halted.
Mechel was unable to resume operation of the plant in 2014 because of Russia’s intervention in Ukraine. In summer 2016 DMEZ was captured by the authorities of the self-proclaimed Donetsk People’s Republic, a terrorist organization created and supported by Russia.
Mechel continued paying for DMEZ to Alfa-Bank till February 2019.
Now Mechel is restructuring its debts to VTB, Sberbank and Gazprombank and has funds only to pay the interest. (Ukrainian metal)