Support The Moscow Times!

Mechel Unloads Ukrainian Plant For 2,000 Euros

Vadim Varshavsky, founder of the steel holding company Estar, is trying to regain the assets he sold to the now debt-laden Russian steel and coal producer Mechel.

The first business returned will be the Donetsk Electrometallurgical Plant, a steel plant in Ukraine sold by Varshavsky for $537 million in 2011 due to debts estimated at $1 billion to $1.5 billion, Kommersant reported.

Mechel is selling the plant back to Varshavsky for nominal sum of 2,000 euros ($2,700), though he will also take on debt to Mechel of up to $81 million.

The plant, which has a capacity of more than 1 million tons of steel per year, lost $50 million last year and stopped production in November due to the high price of scrap metal.

The deal is due to be closed in late 2013.

(MT)

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.