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Delay, but do not refuse ...
As the issue of structuring financial debts to credit institutions is resolved, two Mechel investment projects will be considered by the Government subcommittee "out of schedule"
At the meeting of the Government Subcommittee on the implementation of investment projects in the Far East and the Baikal region, chaired by the RF President's Plenipotentiary in the Far Eastern Federal District, Deputy Prime Minister of the Russian Federation Yury Trutnev, six Far Eastern investment projects were discussed (total investment of 365 billion rubles, Budget investments - 31 billion rubles), claiming financial support from the state in the development of the required infrastructure.
The consideration of two projects was postponed: a project for the development of the Elga coal field in the Republic of Sakha (Yakutia), which presented Mechel Mining Management Company LLC, and the Posiet port reconstruction project in Primorye Territory, which was submitted from Mechel-Trans Management Company LLC.
The reason for the postponement of consideration of these projects was the presence of the company's financial indebtedness, the conditions and the possibility of a return of which to date have not yet been finally determined.
The project "Elgin Coal Deposit", with the presentation of which "Mechel" entered the government subcommittee, from any point of view is more than promising not only for the republican development, but also for the growth of industrial production of the Far Eastern region as a whole.
The first phase of the project provides for the production of 11,7 mil tons of processed coal, the entire reserve of the field is 2 billion 100 million tons.
In 2015, the company has already produced 3 million tons of coal at this field. During the development of the field, it is planned to create 4200 workplaces, the first stage is scheduled for commissioning in 2019.
The volume of private investment is 204 billion rubles, of which at the moment investments have already been made in 81 billion rubles. Taxes and fees for the first 10 years of the project will amount to 24 billion rubles according to preliminary estimates.
Mechel requested financial support for the creation of several infrastructure facilities, including two substations, a power line, a shift camp, residential and utility facilities, an external power supply facility for the shift camp for the amount of the planned subsidy 10 billion 660 million rubles.
During the discussion, the Elginsky coal deposit project itself was almost unanimously supported by the participants of the meeting, a certain concern was caused by the presence of Mechel’s financial liabilities to Sberbank, the only credit institution that had not yet found the opportunity to complete long negotiations with Mechel with a mutually acceptable agreement which would suit both interested parties.
The result of the discussion was the decision of Deputy Prime Minister Yury Trutnev to postpone the decision on the issue of the requested funding for the projects of Mechel for a later period.
"We can not make decisions in a situation where the company has not settled its foreign debt," the presidential envoy noted.
The project was supported by the governors of the Far Eastern regions. But, the Deputy Prime Minister, stressed that he understands the importance of developing the Elginsky project, not only for the development of the coal industry, but also for the development of the Far East as a whole, he noted that the work on resolving the difficult financial situation around Mechel is indeed in the final stage - but unfortunately is not over.
Yuri Trutnev suggested not to hurry, although he noted that for the first time he heard such a progressive position, in particular, the RF Ministry of Finance - the willingness to support a project that has certain financial difficulties.
He pointed out that it was a question of the agreement of the state with the owners of the project in this case. One side assumes obligations to allocate budget money, and the other, in the person of the owner, undertakes to implement the project. This is a serious responsibility, which was warned by all participants of the meeting who presented their projects. "We will not risk using budgetary funds," the Deputy Prime Minister noted during the discussion, while also pointing out the significant role of Gazprombank, currently in the epicenter of Mechel's agreements with creditors, and thanked him for such an active assistance in resolving the problem. In the conclusion of the discussion, Yuri Trutnev indicated his readiness to consider both Mechel's projects, in an extraordinary order, with which the companies entered the government subcommittee, once the issue of restructuring the debt has been finally settled.
After the meeting, the Deputy Prime Minister answered questions from the EastRussia correspondent.
- Yuri Petrovich, how do you think, why does Sberbank take such an implacable position in relation to the company in which 60 has thousands of employees, and which has done a lot of useful things both economically and socially?
- Sberbank takes a position related to the protection of depositors' savings and the protection of its assets. Sberbank has no right to argue that we will forgive this for this, that we will not forgive this, it is impossible. Sberbank takes, in my opinion, an absolutely competent position. And the task of supporting investment projects lies on the shoulders of the Government of the Russian Federation. And the Government is ready to implement this support. Another conversation is that any company, no matter how ambitious and important projects it implements, should be financially sustainable, otherwise we will begin to forgive the debts of everyone, and what this can lead to - I will not even speak.
The project of Mechel for several reasons was not balanced. The initial reasons for the current financial situation may have been good (construction by the company of 320 km of the railroad to the Elginskoye field - the ER revision note), but this does not eliminate the urgent need for a financial balance in order for the enterprise to be economically sustainable. Therefore, the project as a whole we consider, indeed, important, and we will undoubtedly support it. But we need to finally complete all the problems of debt restructuring, so that it has been finally determined who is the owner of the project.
- How does Gazprombank offer a viable scheme for resolving the situation with Mechel's debt?
- Gazprombank is one of the most active parties in terms of forming a way out of this situation. They are working on the task, and we are grateful to the bank, but this bank is not the only creditor, therefore it is necessary that all creditors agree on acceptable terms. We are also making efforts to this, I talked to all the participants in the process - the movement is on, but the end point in the ongoing discussion has not yet been reached.
- The past December 22 was called the date of the Mechel problem solution ...
"It's true, and I'm not very happy about that." But the government of the Russian Federation is not in a position to give commands to banks-and this is correct. Because, otherwise, all economic mechanisms are breaking down. We can express the wish, we can participate, helping in this work to move forward, but to say - to
- And the last question regarding another investment project for the creation of IC Zvezda. Will Rosneft give guarantees for the construction of housing for Zvezda employees? Just a few days ago, there was no information about the guarantees of Rosneft ...
- Rosneft will give guarantees for the construction of housing. Otherwise, we will not be able to bring together all this program to launch the construction of the social infrastructure of IC "Zvezda." Rosneft is building an enterprise, and now Rosneft has appealed to the government to help build housing for employees.
In fact, as you know, this is not always done. In this case, since the project is large and important, we are ready to take such actions. Moreover, this financial structure is rather complicated in structure. We have gathered together the possibilities of the budget of a constituent entity of the Russian Federation - Primorsky Krai, and the possibilities of AHML, and the Development Fund for the Far East.
- Who will be the consolidating structure of all three sources of housing finance?
- The Ministry of Development of the Far East will have a coordinating function and control. But, having collected such a number of tools involved in the project, we must be sure that these apartments will be required for the employees of IC Zvezda, because it is impossible to invest all this money and then look at empty apartments. Therefore, naturally, if Rosneft orders housing, it must guarantee that this housing will be in demand.
- Are the terms for granting such guarantees guaranteed by the customer?
- This is a workflow, we do not put any hard date. The first series of houses has already started designing, and we are sure that everyone will be able to fulfill their obligations.
ER Help: Mechel negotiating restructuring Its debt to the largest creditors since the beginning of 2014. To date, the company has entered into a restructuring agreement with VTB and Gazprombank. With the third creditor - Sberbank - Mechel is still in the negotiation process. The general director of the company Oleg Korzhov earlier in December stated that he expects to sign an agreement with Sberbank in the near future.