News

Mar 24, 2016

UVZ and Czech Export Bank Reach Debt Restructuring Arrangement

Within the framework of the proceedings of the Inter-Governmental Commission for Economic, Industrial, Scientific and Technical Cooperation between the Russian Federation and the Czech Republic, Mr. Oleg Sienko, CEO of JSC Research and Production Corporation Uralvagonzavod, and Mr. Karel Bureš, CEO of Czech Export Bank, A.S., have executed the Memorandum of Acceptance of Terms and Conditions for Restructuring of Loans for Supply of Process Equipment in 2007. The loan shall be restructured at 2.9% p.a. until 2021.

Mr. Denis Manturov, Minister of Industry and Trade of the Russian Federation, and, Jan Mládek, Minister of Industry and Trade of the Czech Republic, attended the execution.

The Commission proceedings are mostly focused on the implementation of major joint investment projects, including those financed by Czech Export Bank, A.S. Such deals include Czech Export Bank's financing of deliveries of process equipment for rolling stock production to UVZ.

Given the ongoing sanction policy of the EU and US against UVZ and its subsidiaries, the arrangements reached are a major positive case that would contribute to continuing cooperation between Russia and the Czech Republic.