VTB grants Evraz $364 million loan

Russian state-owned bank VTB has granted Evraz a one-year loan for $364 million to pay its taxes.

MOSCOW (Reuters) - 

Evraz, a leading Russian metals and mining firm, has secured a one-year loan for 10 billion roubles ($364 million) from state-controlled bank VTB, the miner said in a statement on Thursday.

It said the money would be used to pay taxes.

Evraz has said that it is cutting production and capital expenditures at a number of its plants due to the global financial crisis, and may be forced to cut production within Russia by up to a quarter in November. Its European and North American operations are not to be affected.

Russian companies have seen the credit crisis choke off their access to foreign loans, triggering Russian government to pump 950 billion roubles in liquidity into the banking system, 200 billion of which has gone to VTB. (Reporting by Dmitry Sergeev, writing by Simon Shuster; editing by Elaine Hardcastle)

© Thomson Reuters 2008 All rights reserved

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