The first tranche of financing was awarded by Vnesheconombank to Elgaugol OOO project company, as part of financing totaling $2.5bn.

The funds will allow the company to continue work on the project, regardless of market volatility and achieve planned results as scheduled.

Mechel OAO’s board of directors chairman Igor Zyuzin said, "The quality of Elga’s coals and Elga’s geographic location make this project one of the most efficient in the world."

Vnesheconombank first deputy chairman and member of the board Andrey Sapelin said that the project is a key one for the region in the terms of economic effect.

"It is through financing such important projects that the economy of Far East and Eastern Siberia should develop," Sapelin added.

Under the terms of the transaction, funds from Vnesheconombank will be used to complete construction of Elga Coal Complex’s first stage including railroad and a mining and washing complex with an annual capacity of 11.7 million tons of run-of-mine coal by 2017.