Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

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.


… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more