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Overview

China Eximbank provides $500 million loan for development of northwestern block of the Elginskoye Coal Deposit in the Republic of Sakha (Yakutia) (Linked to Record ID#66587)

Commitments (Constant USD, 2023)$512,776,590
Commitment Year•2014Country of Activity•RussiaDirect Recipient Country of Incorporation•RussiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 20, 2014

Geospatial footprint

Map overview

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The purpose of this project is northwestern block of the Elginskoye Coal Deposit in the Republic of Sakha (Yakutia). More detailed locational information can be found at https://www.openstreetmap.org/way/320995624#map=14/56.1993/130.6345.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned Banks

  • Vnesheconombank (VEB Bank or VEB.RF)

Loan description

China Eximbank provides $500 million loan for development of northwestern block of the Elginskoye Coal Deposit in the Republic of Sakha (Yakutia)

Interest type•Unknown

Narrative

Full Description

Project narrative

On May 20, 2014, Russia's State Corporation Bank for Development & Foreign Economic Affairs — also known as Vnesheconombank (VEB) — signed a $500 million loan agreement with China Eximbank for the development of the northwestern block of the Elginskoye Coal Deposit in the Republic of Sakha (Yakutia). The borrowing terms of the loan are unknown. However, it is known that the proceeds of the loan were to be used by the borrower to facilitate the import of equipment that to develop the Elginskoye Coal Deposit. No project implementation information could be identified as of March 2022. Elginskoye (or Elga) coal mine is a surface coal mine, operated by Mechel and Gazprombank AO, producing 4.3 million tonnes per annum, in southeast Sakha Republic, Russia. It is located in a remote area 415 km east of Neryungri, in Neryungrinsky District, Sakha Republic, Russia. The mine is connected via dirt mining roads to the railway network at Ulak, in Amur Oblast, 210 km away. On the same day, China EXIM Bank and VEB-Leasing (a subsidiary of VEB) signed another loan agreement for $300 million for similar purposes (see Record ID#66587).

Staff comments

1. This loan is not included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in 2020. 2. The Russian project title is Эльгинское угольное месторождение. 3. Several sources suggest that the $500 million loan from China Eximbank was part of a larger $2.5 billion loan that Vnesheconombank issued to Mechel in September 2013. This issue warrants further investigation.