Severstal CEO: Russian Government Takeover Of Steel Cos Unlikely 6-23-09 2:24 PM EDT |
NEW YORK -(Dow Jones)-
The Russian government is unlikely to seek control of steel companies despite its increased involvement in some steelmakers after granting loans, the chief executive of Russia's largest steelmaker said Tuesday.
When asked whether government intervention in domestic steel companies was a growing threat in Russia,
Alexei Mordashov, CEO of OAO Severstal (CHMF.RS), said he didn't think it was very serious.
"Government-owned banks provided some funds for some companies in Russia," Mordashov said at the World
Steel Dynamic's Steel Survival Strategies conference here. "(But) I'm sure that in the long term the government
is not ready and does not like to be involved in any steel companies." He also said Severstal hadn't borrowed any money from state-owned banks. The Russian government had become more involved in some steel companies and other metal companies such as Rusal after granting loans in exchange for board seats. Some Russian metal companies have had to turn to the government in order to strengthen their balance sheets amid the economic downturn and slump in demand for steel and other metals.
-By Alex MacDonald, Dow Jones Newswires; alex.macdonald@dowjones.com; +44 207 842 9328
(END) Dow Jones Newswires
06-23-091424ET
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