The Vneshtorgbank (Bank of Foreign Trade,) one of Russia's largest commercial banks will provide a credit guarantee worth $45 million for four years, making Marubeni the first Japanese company to receive a supplier's credit guarantee from a Russian commercial bank.
STG is the sole contractor for two major Russian state-sponsored energy projects: the 3,442 km. West Siberian natural gas pipeline intended to supply Eastern Europe, and the 373 km. inland 'Blue Stream' gas pipeline intended to supply natural gas to Turkey. STG has already completed major parts of both pipelines.
Marubeni is to supply 52 construction machines, including pipelayers from Komatsu Ltd. and drilling machines made by Kato Works. Marubeni will also provide American and European-made pipeline equipment. The machinery will ship from March for delivery in 2002, and will be used on the "Blue Stream" pipeline project.
This is the second agreement between the two companies. In 1997, Marubeni provided STG with Komatsu construction machinery worth $130 million. The success of that delivery contributed not only to the present contract but to an additional contract for some $35 million, which will follow shortly. These two contracts, worth some $80 million combined, will be the largest of their kind with a Russian contractor since 1997.
Energy and natural resource development is one of Marubeni's main business sectors. Construction machinery export, sluggish in the years since the economic crisis in the East Asia, has recently been revitalized through growing demand from big projects in Russia, Africa and the Middle East. Marubeni will continue to emphasize its business in those areas.
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