The Bank of Moscow and METALLOINVEST have announced that the lawsuit filed against JSC Mikhailovsky GOK, a subsidiary of the Group, was withdrawn.

The lawsuit was filed in the Moscow Court of Arbitration on December 15th 2011 in order to reclaim a troubled loan worth RUB 1.236 billion which was granted to LLC Universtroilux.

METALLOINVEST stated that it is a responsible partner which fulfils its obligations in full and in a timely manner.

The Bank and the Group have a long and successful history of cooperation. The Bank has offered a significant credit line to the Group’s enterprises.

The Bank works together with many of Group’s enterprises - JSC Lebedinsky GOK, JSC OEMK, JSC Ural Steel and others. Mikhailovsky GOK has been a client of the Bank since 2001, and has successfully drawn up credits on a number of occasions. The Bank considers the Group to be a top tier borrower and looks forward to further cooperation.

The claims against Mikhailovsky GOK arose as a result of an assignment of contract rights, which entitled Mikhailovsky GOK to receive revenues for the services rendered by Universtroilux. Universtroilux has not fulfilled its obligations and has not informed the Bank of the terminated contract with Mikhailovsky GOK in accordance with established procedures.

As per release “At the present time, all contractual obligations between Mikhailovsky GOK and LLC Universtroilux are terminated.”