VEB doesn’t expect profit from Mechel till 2030

The reasons for VEB’s rejection of the implementation of restructuring scheme of Mechel’s debt in the amount of $8.3 billion, proposed by state-owned banks and approved by the Ministry of Finance, have become known. According to the state-owned corporation, this option will work only in case of low inflation and a sharp depreciation of the ruble. VEB itself is convinced that Mechel won’t be able to become profitable until 2030. This view is shared in the office of the First Vice Prime Minister Igor Shuvalov, looking to solve the Mechel’s problems by restructuring its assets, a change of management and shareholders.

The basic model of support of Mechel by buying the company’s bonds by VEB is operable only in case of an "extremely optimistic" scenario. This conclusion was made in the office of the First Deputy Prime Minister, Igor Shuvalov