Mechel discussing asset sales, primarily in energy sector

Mechel is discussing selling some of its assets, in particular, energy assets such as Kuzbassenergosbyt and the South Kuzbass State District Power Station, CEO Oleg Korzhov told journalists.

"We are operating on the basis that we have assets which would not impact substantially on our cash flow and operations if we removed them from the group. For example, Kuzbassenergosbyt and the South Kuzbass State District Power Station. The same goes for another small plant, the Wartsila Hardware Plant, and we are now also thinking about YUNK [Yuzhuralnickel], Moskoks potentially too, if the price is of interest to us," he said.

"Above all, we are currently considering selling Kuzbassenergosbyt and the South Kuzbass State District Power Station and are conducting active negotiations on these assets," Korzhov said.

Mechel comprisesover 20 facilities that produce coal, iron ore, steel, rolls, ferroalloys, heat and electric power. All of the Group’s enterprises work within a single production chain – from mining raw materials to output and sales.