Russian yard to expand

The Russian bank Vnesheconombank will be financing the construction of an 18 billion-ruble ($733 million) shipbuilding complex in St. Petersburg owned by billionaire Sergei Pugachyov.

The state-owned bank signed an agreement last week with Alexander Gnusarev, chairman of Pugachyov?s United Industrial Corp. (OPK), for the funding of the project which will increase the capacity of the Severnaya Verf shipyard. Moscow-based OPK is also considering a syndicated loan that would allow it to seek additional financing because the project?s cost is expected to grow.