Mechel, Russia’s steel and metal giant, has warned investors of growing default risks if the Ukraine crisis spirals out of control, says the news agency Itar-Tass.
According to the news report, Mechel is very much concerned over a possible liquidity crunch in the Russian banking sector amid continuing uncertainty over the Ukraine crisis.
The company may default on its debt if the national lending institutions are unable to help it meet its financial needs, says the report.
The uncertainty is exacerbated by flat economic growth of the national economy.
Founded in 2003, Mechel is one of the world's leading mining and metals companies.
The company has production facilities in 11 of Russia’s regions, as well as in the United States, Ukraine and Lithuania.
Mechel is comprised of more than 20 production enterprises, producing coal, iron ore, steel, rolled products, ferroalloys, heat and electric power. All of the Group’s enterprises work within a single production chain – from raw materials to high value-added products. The holding also owns three trade ports, transport operators and international sales and service networks. Mechel’s products are sold in Russia and abroad. The company has 72,000 personnel.
Author: Mikhail Vesely