MOSCOW, April 24 /PRNewswire-FirstCall/ -- Mechel OAO (NYSE: MTL), one ofthe leading Russian mining and metals companies, announces signing of aCollaboration Agreement with VTB Bank.
The Agreement represents a long-term, mutually beneficial collaborationbetween the Company and VTB Bank for the purpose of implementing Mechel'slong-term projects and development programs.
The basis for this Agreement was established by a long, positivecollaboration history between VTB Bank and Mechel OAO and the parties' mutualinterest in the further development of their relationship.
As part of the work under the agreement, VTB Bank will be engaged as oneof the lending institutions in financing Mechel's current and investmentactivities and in servicing the Company's other financial operations. It isexpected that VTB Bank will act as a consultant to the Company on projectsrelated to the improvement and development of an international and domesticsettlement system and the implementation of modern financial resourcemanagement technologies to enhance Mechel's performance.
The Agreement was signed for VTB Bank by its Chairman and Chief ExecutiveOfficer, Andrey Kostin, and for Mechel OAO by its Chief Executive Officer,Igor Zyuzin.
'Signing the Agreement with VTB Bank is a positive step for Mechel thatcontinues a relationship that has existed for a long time. VTB Bank is one ofthe leaders in its market in Russia, and our collaboration opens newopportunities in financing and crediting to help further the growth of ourbusiness. In 2007, VTB Bank gave us invaluable and timely support in oursuccessful efforts to purchase coal assets in Yakutia. Going forward, we areconfident that we can continue to count on VTB Bank to add value to ourbusiness as we continue to execute our operating strategy. We are pleased thatour partners are major financial institutions, such as VTB Bank, as we believethis is evidence of Mechel's effective financial policy and reputation in themarketplace,' Mechel's Chief Executive Officer Igor Zyuzin commented.
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Mechel is one of the leading Russian companies. Its business includesthree segments: mining, steel, and power. Mechel unites producers of coal,iron ore concentrate, nickel, steel, rolled products, hardware, heat andelectric power. Mechel products are marketed domestically and internationally.
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Some of the information in this press release may contain projections orother forward-looking statements regarding future events or the futurefinancial performance of Mechel, as defined in the safe harbor provisions ofthe U.S. Private Securities Litigation Reform Act of 1995. We wish to cautionyou that these statements are only predictions and that actual events orresults may differ materially. We do not intend to update these statements. Werefer you to the documents Mechel files from time to time with the U.S.Securities and Exchange Commission, including our Form 20-F. These documentscontain and identify important factors, including those contained in thesection captioned 'Risk Factors' and 'Cautionary Note RegardingForward-Looking Statements' in our Form 20-F, that could cause the actualresults to differ materially from those contained in our projections orforward-looking statements, including, among others, the achievement ofanticipated levels of profitability, growth, cost and synergy of our recentacquisitions, the impact of competitive pricing, the ability to obtainnecessary regulatory approvals and licenses, the impact of developments in theRussian economic, political and legal environment, volatility in stock marketsor in the price of our shares or ADRs, financial risk management and theimpact of general business and global economic conditions.
SOURCE Mechel OAO
