December 4, 2009 (FinancialWire) — Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced a three-year prolongation VTB Bank of the 15 billion rubles loan given to Mechel in 2008.

At the end of 2008 VTB Bank opened credit lines totaling 15 billion rubles to Mechel’s subsidiaries Yakutugol OJSHC, Southern Kuzbass OAO and Chelyabinsk Metallurgical Plant OAO. Initially, the credit period was one year. The credit facilities were used to fund the operations of these Mechel’s subsidiaries.

Prolongation agreement provides for interest payment during the first 2.5 years only with further monthly repayment of the principal debt. This agreement is based on strong and long-term relations between Mechel and VTB Bank and mutual interest of the parties in future complex cooperation development.

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