On December 22nd the Russian Federal Property Fund (RFPF) will conduct a public auction of 17.82% state block of shares of Magnitogorsk Iron and Steel Works. The starting price of the state block of shares will be USD 790.15mln., the auction step will be USD2.0mln.
    On the eve of this auction Mr. Pyotr Latyshev, the Authorized Representative of the President of the Russian Federation in the Ural Federal District, and Mr. Pyotr Sumin, the Governor of Chelyabinsk Oblast’ (Province) granted interviews to the journalists. When asking a question concerning the significance of OAO MMK state block of shares sale for Chelyabinsk Oblast’, Mr. Pyotr Sumin answered particularly the following: “ OAO MMK is a strategically important plant both for the province and the region. The company’s operation helps the province advance, develop, and strengthen its social and economic position. And this in spite of the fact that only ten years ago the situation at the plant was dramatic, and you are aware of that. Magnitka [Magnitogorsk Iron and Steel Works] entered the market with worn-down production assets because in the Soviet era the plant used to work at full stretch enabling other regions erect new state-of-the-art facilities and create the analogue “Magnitkas” in Cherepovetz, Kazakhstan, Lipezk…
     Under the extreme conditions of raging anarchical market, epidemic payment default and crises the management of OAO MMK headed by Viktor F. Rashnikov managed to pull out the plant of the economic downfall and start the fundamental reconstruction of the basic production and to put into operation new production facilities up to the latest European and world standards in the near future. I have no doubts that the majority of positive things taking place at OAO MMK and the city of Magnitogorsk now are the results of strenuous, effective and wise work of Magnitogorsk Iron and Steel Works. That is why I’m far from being indifferent to the result of the auction and into whose hands the company will fall because the economic security and social peace of the whole region depends on the successful and effective operation of this company”.
    Mr. Pyotr Latyshev passed a similar opinion in another interview: “ We are sure that Magnitka will keep and improve its position not only as a major tax payer but also as the most powerful steel making company in the world”.

Information and PR Administration of Magnitogorsk Iron and Steel Works