Russia Mechel may sell stake in Elgaugol to Gazprombank by April

MOSCOW, Mar 4 (PRIME) -- Russian debt-ridden metals and mining giant Mechel plans to finish negotiations to sell a stake in its subsidiary Elgaugol, which develops the Elga coal deposit in Siberia, to Gazprombank, one of its major creditors, by April, Mechel CEO Oleg Korzhov said during an EGM on Friday.

“We plan to finish the talks on the deal to sell a stake in Elgaugol to Gazprombank until the end of the first quarter,” he said.

In February, business daily Vedomosti reported that Mechel planned to sell 49% in Elgaugol to Gazprombank for U.S. $500–550 million.

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