GO
Loading...

Enter multiple symbols separated by commas

Russia's Evraz: Lenders still demand harsh terms

Russia's largest steelmaker by output, Evraz, has said it is still in talks with lenders over the strict terms of their financing agreements, enforced following Western sanctions over the crisis in Ukraine.

Russian companies have faced new stringent rules from Western banks after the annexation of Crimea, which prompted the West to impose sanctions, with some banks insisting firms make instant repayments if sanctions take effect.

Read MoreRussia sanctions: Who's losing out so far

While much of the tension has now dissipated following Ukraine's presidential election, banks are still discussing terms that include immediate repayment, according to Evraz's chief financial officer, Giacomo Baizini.

Russian Prime Minister Dmitry Medvedev visits of the rail and beam shop of Evraz, Russia's largest steelmaker
Dmitry Astakhov I AFP I Getty Images
Russian Prime Minister Dmitry Medvedev visits of the rail and beam shop of Evraz, Russia's largest steelmaker

Read MoreEU's Barroso warns Russia of more sanctions

"That kind of clause, we are still looking at, we are still in negotiation over the final documents, but that possibly will be in the documents, yes," Baizini said.

Baizini said that while they were still in talks with their creditors over the final agreement, the overall attitude of investors and banks has shifted.

"Obviously everybody took a bit of time off when this thing started but we are now back into full dialogue with investors - we had our investor day yesterday and the question of Ukraine was raised, but was not an issue," he said.

Read MorePutin: Russia looks East, will respect Ukraine poll

"With banks we are going through with a $500 million-$700 million pre-export finance facility and we are finding backing for that without any issue," he added.

The group said it plans to increase railway track output in Northern America and it expects growth in pipeline construction next year.

CNBC Global CFO Council

Video

  • Fed rate rise? Late 2015, says Yahoo CFO

    Kenneth Goldman, CFO of Yahoo! and CNBC Global CFO Council member, explains why he doesn't see the potential Fed rate rise having an effect on companies who've been fueling growth through cheap credit.

  • Maybank CFO: Expect slower loan growth this year

    Mohamed Rafique Merican, CFO of Maybank Group, says factors such as weaker commodity prices and the implementation of the goods and services tax will weigh on loan growth this year.

  • Is Lenovo worried about a China slowdown?

    Wong Wai-Ming, CFO of Lenovo, is confident that business on its home turf will continue to grow, but says the percentage of its Chinese business will likely fall amid a growing international market.