Mechel Says It Lent Money to Largest Shareholder Igor Zyuzin

OAO Mechel (MTLR), Russia’s largest producer of metallurgical coal, said it lent money to billionaire Chairman Igor Zyuzin, and that he funds have since been repaid.

The largest loan amount was $135.7 million in June 2010, Moscow-based Mechel said in a regulatory filing today. No loans to Zyuzin are outstanding, it said.

Zyuzin acquired Brazilian steelmaker Usina Siderurgica do Para Ltda in 2010.

“In September 2010, the controlling shareholder acquired Usina Siderurgica do Para Ltda, or Usipar, a steel company located in Brazil,” Mechel said in the filing. Mechel purchased $72 million of pig iron from Usipar and sold $61 million of coke and other raw materials to Usipar last year, it said.

Mechel didn’t lend any funds to Zyuzin’s companies for the purpose of buying the Brazilian steelmaker, the company’s press- service said today.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net

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