OREANDA-NEWS. May 5, 2012. Mechel JSC  (NYSE: MTL), one of the leading Russian mining and metals companies, announces signing agreements with Gazprombank for the extension of short-term credit facilities totalling 22 billion rubles (approximately 747 million US dollars*).

Gazprombank extended the maturities on revolving credit lines opened for Chelyabinsk Metallurgical Plant JSC , Mechel-Service LLC  and Mechel-Energo LLC  by 3 to 5 years.

“Our cooperation with Gazprombank once again demonstrated its strategic importance for the Group and its remarkable efficiency. This extension, together with the 500-million-dollar loans granted by Gazprombank less than a week ago and our efforts to re-finance the short-term share of our debt, undertaken over the past 3 months, made a key improvement in the structure of the Group’s credit portfolio. This is not only another proof of our lenders’ trust in Mechel, but also a platform for further optimization of the company’s debt by extending credit instruments and decreasing interest expense,” Mechel JSC ’s Chief Financial Officer Stanislav Ploschenko noted.

*Based upon the Russian Central Bank exchange rate of 29.46 RUR/USD  as of May 4, 2012.