Mechel OAO, one of the leading Russian mining and metals companies, announced on Monday that it has reached an agreement on covenant holidays on bilateral credit lines from Sberbank, the largest bank in Russia and Eastern Europe, amounting to $1.36 billion until the end of 2014.

"We are grateful for Sberbank's support of Mechel's revised development strategy, which includes a gradual decrease of our debt burden as one of its basic elements. The signed agreement is yet another proof of our mutually beneficial and efficient partnership. Obtaining Sberbank's agreement to covenant holidays will enable the company to continue implementing our new development strategy, which was approved last year, and overcome the period of global market volatility," Mechel OAO Chief Financial Officer Stanislav Ploschenko said.

Mechel is an international mining and steel company employing more than 80,000 people. Its products are marketed in Europe, North and South America, Asia and Africa

The company unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power, with all of its enterprises working in a single production chain, from raw materials to value-added goods.