BaselCement-Pikalevo to seek 4 bln-10 bln rubles from VEB for updates
ST. PETERSBURG. Oct 8 (Interfax) - BaselCement-Pikalevo, an alumina producer that is part of Oleg Deripaska's Basic Element, plans to raise 4 billion-10 billion rubles in financing from state lender Vnesheconombank (VEB) for a project to modernize its production facilities, the CEO and owner of Pikalevksaya Soda and future head of BaselCement-Pikalevo, Maxim Volkov told Interfax.
"At the first stage, we intend to ask VEB for financing for the modernization project. Depending on the scope of the project, a loan of 4 billion-10 billion rubles will be needed," Volkov said, adding that the company will not be able to raise a commercial loan given the situation at the Pikalevo production complex, while VEB's activities are aimed at financing such development projects.
The modernization project might be approved by the end of this year and will take about three years to carry out, Volkov said.