MOSCOW, Dec 2 (PRIME) -- Russian metals producer Severstal has agreed to sell its coal subsidiary Vorkutaugol to businessman Roman Trotsenko’s Russian Energy Group for 15 billion rubles, Severstal said in a statement on Thursday.
“The transaction is expected to be closed in the first quarter of 2022 after obtaining approvals from the Federal Antimonopoly Service of Russia, as well as meeting a number of other conditions. The buyer plans to finance the transaction with its own and borrowed funds,” the company said.
Severstal plans to spend the funds raised from the sale on decarbonization efforts and development of its steel and iron ore assets, the company said.
Vorkutaugol is one of Russia’s largest coal producers. The company’s output stood at 10.3 million tonnes of coal and 4.7 million tonnes of coal concentrate in 2020.
(73.9746 rubles –U.S. $1)
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