OREANDA-NEWS.  June 28, 2012. Within the framework of the Saint Petersburg International Economic Forum the Sberbank of Russia and the United Metallurgical Company (OMK) have concluded a Cooperation Agreement, reported the press-centre of Sberbank.

The subject-matter of the Agreement is the development of cooperation between the Bank and the Company, including development of relations in respect of main banking products with subsidiaries of the Company on a long-term and mutually beneficial basis.

The Agreement envisages financing by the Sberbank of the OMK Group’s investment project of “The Construction of the Integrated Pipe Producing and Steel Making Complex in the Town of Chusovoy of the Perm Territory” in a total amount of 33.8bn rubles for up to 12 years.

The total value of the project is about 50bn rubles. It is planned within the framework of the project to:

Organize a modern high-tech production of steel blanks, produce seamless pipes for oil and gas industry and workpieces for manufacture of carriage springs.

Create 2,500 new working places and additionally organize 2,000 working places for the period of construction.

Increase tax payments to budgets of all levels by more than 8 times in the period of 2016-2026, as well as reduce polluting emissions by more than 5 times.

To ensure performance of obligations in respect of the credit line, there is granting of a State guarantee in the amount of 21bn rubles envisaged.

Apart from this, the signed Agreement on Cooperation envisages a possibility of organizing the OMK Group’s financing by the Bank with the use of the capital market’ instruments (including issue of ruble and forex bonds), syndicated lending as well as rendering of investment and banking services. The Agreement is the basis for development of cooperation between the organizations and will make it possible to consolidate the established partnership relations.

“The Project of constructing a modern pipe producing and steel making complex will be of great importance for the economy of the Perm Territory. Participation of the Bank in financing such a capital-intensive project on a project financing basis is a good example of the Bank’s strategy of supporting the national economy’s enterprises. I am eager to believe that this project will make it possible to “breathe a new life” into the social and production infrastructure of one of the important metallurgical centers in the Urals”, said German Gref, President, Chairman of the Board of the Sberbank of Russia.

“The Sberbank of Russia is our old-established strategic partner. Within the last seven years the Sberbank issued the OMK with loans for the amount of about 70 billion rubles. These were mainly long-term loans for construction of new and reconstruction of existing enterprises. Signing of a new Agreement is a logical development of our long-term cooperation.

The Project in the town of Chusovoy is one of the most large-scale projects in the Russian metallurgy industry. Construction of the integrated pipe producing and steel making complex under such a tight schedule will be ensured by attracting the Sberbank’s funds and granting of the Russian Federation’ s State guarantee. This is one more affirmation of the fact that for the Sberbank, the further development of the domestic industry is one of the prioritized lines of its activities”, Anatoly Sedykh, Chairman of the Board of Directors of the OMK CJSC, pointed out.