Russia's Mechel to Sell Heating Utility in Bulgaria's Ruse

Russian steel and mining giant Mechel OAO plans to sell Toplokifatsiya Ruse, the heating utility in the northeastern Bulgarian Danube city of Ruse.

According to Russian business daily Vedomosti, Mechel OAO is seeking buyers of assets in Europe and the countries of the former Soviet Union.

Mechel OAO has said it wants to sell non-core and unprofitable assets to finance debt repayment.

Following a September 21 meeting of Mechel OAO's Board of Directors, the company published Tuesday a list of assets earmarked for sale due to their inconsistency with the new development strategy.

Mechel OAO announced it would divest of the following assets: enterprises that make up Mechel's Eastern European Steel Division S.R.L., Donetsk Electrometallurgical Plant PJSC (Ukraine), Invicta Merchant Bar Ltd. (UK), UAB "Mechel Nemunas" (Lithuania), Mechel Service Global B.V. (except Mechel Service OOO (Russia)), Voskhod-Chrome LLP (Kazakhstan), Voskhod-Oriel LLP (Kazakhstan), Tikhvin Ferroalloy Plant OOO (Russia), Southern Urals Nickel Plant OAO (Russia), Kuzbass Power Sales Company OAO (Russia), Toplofikatsia Rousse EAD (Bulgaria).

The Board of Directors of the Russian steel and mining giant also recommended evaluating the possibility of a potential divestment of a minority stake of up to 25% in Mechel Mining OAO to a strategic partner in order to speed up the implementation of the mining division's priority project, the development of the Elga coal deposit.