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Russia's Evraz: Lenders still demand harsh terms

Evraz to benefit from US rail projects: CFO

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.

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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

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"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.

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"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.