Russia's VTB CEO refuses to comment on Mechel

MOSCOW, Mar 19 (PRIME) -- Andrei Kostin, CEO of Russia’s second largest bank VTB, on Thursday declined to comment on debt ridden metals and mining group Mechel due to strong movements of the stock market.

“I have already been criticized…I make statements (about Mechel) every day, and the central bank criticizes me, saying that its shares are fluctuating. I will not say a single word more,” Kostin said.

On March 13, Kostin said that the company could redeem more debt than it wishes even under current circumstances. Later, Economic Development Minister Alexei Ulyukayev said Mechel’s bankruptcy cannot be avoided, and after the two statements the company’s American Depositary Receipts plunged by a record of 32% at the New York Stock Exchange.

But on Wednesday, a spokesman for the bank told PRIME that VTB received good debt settlement proposals from Mechel at the last meeting on Tuesday and it sees opportunities to continue the dialogue over debt restructuring. During the day Mechel’s shares rose by 10% at the Moscow Exchange.

On March 7, VTB said it will file for Mechel’s bankruptcy, after unsuccessful debt restructuring negotiations with the company throughout last year.

VTB wants a stake in Mechel for debt write-off, CFO Herbert Moos said in January, but Mechel will repay the whole debt because its financial performance is improving, Industry and Trade Minister Denis Manturov said previously.

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