Russia's UC RUSAL joins queue for government aid

MOSCOW, Oct 14 - The world's top aluminium producer, Russia's United Company RUSAL, has applied for a government loan to refinance its debt to foreign banks, spokeswoman Vera Kurochkina said on Tuesday. She said the loan is meant to refinance credits used to modernise existing plants and building new ones. But she did not disclose the amount of the requested loan. The government has said it is prepared to lend $50 billion to Russian companies to refinance a total of $120 billion of Western loans before the end of 2009. The distribution is subject to approval by Russia's state bank VEB. UC RUSAL is 57 percent owned by tycoon Oleg Deripaska. RUSAL's debt is estimated at $14 billion. Deripaska's investment vehicle Basic Element this month divested its stakes in Canadian car parts maker Magna and German builder Hochtief . Source: Reuters