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Russia's second-biggest lender to provide financing for Urakali-Silvinit merger

Reuters Friday reported that Russia's second-biggest lender, VTB, will provide a 5.7 billion rouble ($193 million) loan to Russian potash miner Uralkali, the bank's spokeswoman told Reuters on Friday.

JSC VTB Bank entered into a RUB 5.7 billion loan agreement with JSC Uralkali, a global leader in potash fertilizer production. The loan facilities are offered for a year to finance current business activities.

United company Uralkali was established in 2011 by consolidating JSC Silvinit and JSC Uralkali. Presently, the company is becoming a top priority partner of JSC VTB Bank.
The funds will be provided for one year and will be used to finance current operations, VTB said in a separate statement.

Uralkali Chief Executive Vladimir Baumgertner said in late June the company would refinance around $1 billion in debt for merger partner Silvinit this autumn, indicated Reuters.

The companies, both controlled by billionaire tycoon Suleiman Kerimov and associates, merged in a $23.9 billion deal this year to form Russia's No. 1 potash producer, said Reuters.

VTB is Russian bank that has built itself into an international financial group. VTB Group possesses a unique international network among Russian banks, with over 20 banks and financial companies in 19 countries worldwide.

VTB offers comprehensive services to its customers in the CIS, Europe, Asia and Africa. In the Russian market, VTB Group is ranked 2nd in all major indicators. With a presence in over 20 countries, VTB has become a leading international financial group of Russian origin.

As of 30 September 2010, VTB sales network comprises 957 offices in Russia, the CIS and Europe. Outside Russia, VTB Group operates from 12 subsidiary banks located in the CIS (Armenia, Ukraine, Belarus, Kazakhstan and Azerbaijan), Europe (Austria, Cyprus, Germany, France and United Kingdom), Georgia and Africa (Angola).

JSC Uralkali is a vertically integrated company holding under control a complete production chain – from potash ore mining to potassium chloride suppliers to end users.

The company has manufacturing facilities in Bereznyaki and Solikamsk (Perm Region) on the territory of Verhnekamsk deposits of potassium and magnesium salts, ranked 2nd in the world in terms of oil reserves. JSC Uralkali is a global leader in potash fertilizer production with a market share of about 20%.

The Company was founded in 2011 through combination of OJSC Uralkali and OJSC Silvinit. The Company employs over 23,000 people. Uralkali’s shares and GDRs are traded on the LSE, RTS and MICEX.

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