China freezes $580 mln for Nezhin plant construction

Mikhail Gutseriyev. Photo: RBC

The Nezhinsk ore mining and processing enterprise in Belarus, which is being built by Slavkaliy owned by the Russian oligarch Mikhail Gutseriyev is now in trouble. It was built on loans from China under the guarantee of the Belarusian government.

China has frozen the next tranches of the loan due to sanctions while the construction companies leave the site, reports “Nasha Niva,” citing its sources.

Since late June, construction work has been suspended, with $820 million being used on the project and another $580 million pending. “Slavkaliy did not receive the expected $103 million tranche in the summer due to sanctions.”

Although Mikhail Gutseriyev‘s company and the Belarusian state authorities are trying to persuade the Chinese to solve the problem, the developers are leaving the site, and Slavkaliy owns them money.