Mechel obtains credit lines from VTB Bank

VTB Bank has opened one-year credit lines totaling 15 billion rubles for Yakutugol OJSHC, Southern Kuzbass Coal Company and CMK, subsidiaries of Mechel. The credit facilities will be used to fund the operations of these subsidiaries.

The establishment of the credit line is a continuation of the relationship between Mechel and VTB Bank, which supported Mechel’s acquisition of Yakutugol OJSHC and Elgaugol stocks at auction in the autumn of 2007. That transaction was financed with Mechel equity and capital provided mainly by VTB Bank.

The strong relationship between Mechel and VTB Bank is also substantiated by the Agreement on Long-term Mutually Beneficial Cooperation entered into by the companies in April 2008, with a view of implementing Mechel's projects and development plans, as previously announced.

As part of the Agreement, VTB Bank will be engaged as one of the leading institutions in financing Mechel’s current investment activities and in servicing the Company’s financial operations. VTB Bank is also expected to act as a consultant to Mechel on projects related to the further development of Mechel’s international and domestic accounts and the implementation of modern financial resource management technologies designed to enhance Mechel’s performance.