Financial assets and financial liabilities (Tables)

12 Months Ended

Dec. 31, 2018

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Schedule Of Principal And Interest Amounts Outstanding For Loans And Bonds

The Group has the following principal and interest amounts outstanding for loans and bonds:

Short-term borrowings and current portion of long-term debt	December 31, 2018				December 31, 2017
	Interest rate, %		Amount of outstanding debt		Interest rate, %		Amount of outstanding debt
In Russian rubles
Banks and financial institutions		9.3-9.6		3,634		9.3-12		2,410
Corporate lenders		6.7		10		6.7		65
Weighted average interest rate for the period		9.4				11.9
In euro
Banks and financial institutions		1.3-2.8		580		—		—
Corporate lenders		3.0		22		—		2
Weighted average interest rate for the period		1.5				—
Current portion of long-term debt		—		398,171		—		378,063
Interest payable		—		7,749		—		20,420
Fines and penalties on overdue amounts		—		2,128		—		21,573
Total short-term borrowings and current portion of long-term debt				412,294				422,533

Long-term debt	December 31, 2018					December 31, 2017
	Interest rate, %		Amount of outstanding debt			Interest rate, %		Amount of outstanding debt
In Russian rubles
Banks and financial institutions		5.0-10.0		242,499			5.0-15.0		253,421
Bonds issue		8.0-12.3		10,979			8.0-14.0		14,459
Corporate lenders		6.7		73			6.7		5
Weighted average interest rate for the period		9.3					9.5
In U.S. dollars
Banks and financial institutions		3.9-9.9		54,719			2.2-8.9		102,040
Corporate lenders		3.0		138					—
Weighted average interest rate for the period		8.6					8.3
In euro
Banks and financial institutions		0.8-7.0		96,301			0.8-7.0		25,498
Weighted average interest rate for the period		4.8					2.7
Current part of long-term loans and borrowings				(398,171	)				(378,063	)
Total long-term debt				6,538					17,360

Scheduled Maturities of the Debt Outstanding

Aggregate scheduled maturities of the debt outstanding as of December 31, 2018 were as follows:

Payable by
On demand	406,077
2019 (current portion)	6,217
2020	3,972
2021	2,430
2022	16
2023	88
Thereafter	32
Total	418,832

Summary of Outstanding Balances of Principal Amount of Short-term and Long-term Debt by Denominated Currencies and Major Banks

The outstanding balances of principal amount of short-term and long-term debt by denominated currencies and major banks as of December 31, 2018 and 2017 were as follows:

Short-term and long-term debt	December 31, 2018		December 31, 2017
Russian ruble-denominated
Gazprombank		142,635		148,238
VTB		73,416		72,570
Sberbank		25,723		26,459
Bonds		10,979		14,459
Eximbank of Russia		3,305		3,049
Uralsib		—		2,214
Eurasian Development Bank		—		517
Raiffeisen Bank		—		139
Other		1,137		2,715
Total		257,195		270,360
U.S. dollar-denominated
Sberbank		23,147		14,626
BNP		10,759		8,894
VEB		8,794		10,090
VTB		7,573		6,172
MCB		4,037		4,096
Pre-export facility		7		57,829
Other		540		333
Total		54,857		102,040
Euro-denominated
VTB		74,794		3,334
BNP		15,752		13,504
ING Bank		2,541		2,182
NatWest Markets		1,549		1,342
Commerzbank		1,317		875
Raiffeisen Bank		14		411
UniCredit Bank (former Bayerische Hypo-und-Vereinsbank)		—		2,970
Other		936		882
Total		96,903		25,500
Total short-term and long-term debt		408,955		397,900

Schedule of Information About Ratios Under Most Significant Loan Agreements

The Group was required to comply with the following ratios under the most significant loan agreements with the Russian state-owned banks as of December 31, 2018⁴:

Restrictive covenants	Requirement	Actual as of December 31, 2018
Mechel’s EBITDA to Net Interest Expense	Shall not be less than 1.75:1.0	1.79:1.0
Mechel’s EBITDA to Consolidated Financial Expense	Shall not be less than 1.75:1.0	1.82:1.0
Mechel’s Net Debt to EBITDA	Shall not exceed 6.00:1.0	6.39:1.0
Mechel’s Total Debt to EBITDA	Shall not exceed 4.50:1.0	6.25:1.0
Mechel’s Cash flow from operating activities to EBITDA	Shall not be less than 0.80:1.0	0.90:1.0
Mechel’s EBITDA to Revenue	Shall not be less than 0.20:1.0	0.24:1.0

Schedule of Information About Remaining Contractual Maturities of Non-derivative Financial Liabilities

The following tables show the remaining contractual maturities at the reporting date of the Group’s non-derivative financial liabilities, which are based on contractual undiscounted cash flows (including interest payment computed using contractual rates, or if floating, based on rates current at the reporting date) and the earliest the Group can be required to pay.

	Maturity
	On demand		Within 1 year		More than 1 year but less than 2 years		More than 2 years but less than 3 years		More than 3 years but less than 4 years		More than 4 years		Total
At December 31, 2018
Loans and borrowings, including interest payable		406,337		7,185		4,520		2,550		16		119		420,727
Finance lease liabilities		1,664		5,186		908		886		745		350		9,739
Trade and other payables		15,891		15,270		352		186		16		—		31,715
Other financial liabilities		—		—		—		55,742		—		—		55,742

	Maturity
	On demand		Within 1 year		More than 1 year but less than 2 years		More than 2 years but less than 3 years		More than 3 years but less than 4 years		More than 4 years		Total
At December 31, 2017
Loans and borrowings, including interest payable		416,316		9,959		6,678		7,293		5,215		1,651		447,112
Finance lease liabilities		4,075		4,625		633		584		557		526		11,000
Trade and other payables		394		29,540		542		166		—		—		30,642
Other financial liabilities		—		869		—		—		55,905		—		56,774

Schedule of Information About Maximum Exposure to Credit Risk Arising from Financial Assets

The maximum exposure to credit risk arising from the Group’s financial assets is presented as follows:

	December 31, 2018		December 31, 2017
Restricted cash (excluding cash on hand)		51		20
Trade and other receivables		17,718		18,825
Other financial assets		533		795
— Promissory notes		212		210
— Loans issued		305		571
— Bonds		16		14
Total		18,302		19,640

Schedule of Information About Foreign Currency Risk Arising from Recognized Assets and Liabilities

The Group’s exposure at the reporting date to foreign currency risk arising from recognised assets and liabilities denominated in a currency other than the functional currency of the entity to which they relate to is set out in the table below:

Assets and liabilities denominated in U.S. dollars	December 31, 2018			December 31, 2017
Current assets		157			829
Trade and other receivables		27			111
Cash and cash equivalents		130			718
Current liabilities		(54,954	)		(118,677	)
Short-term loans and borrowings		(51,732	)		(112,277	)
Trade and other payables		(3,222	)		(5,614	)
Short-term finance lease liabilities		—			(786	)

Assets and liabilities denominated in euro	December 31, 2018			December 31, 2017
Current assets		812			746
Trade and other receivables		510			711
Cash and cash equivalents		302			35
Non-current liabilities		(219	)		(88	)
Long-term finance lease liabilities		(219	)		(88	)
Current liabilities		(101,294	)		(27,399	)
Short-term loans and borrowings		(98,285	)		(25,304	)
Trade and other payables		(2,953	)		(2,064	)
Short-term finance lease liabilities		(56	)		(31	)

Schedule of Information About Sensitivity to Devaluation

The table below demonstrates the Group’s sensitivity to a devaluation of the Russian ruble against U.S. dollar and euro which management believes is an appropriate measure in the current market conditions and which would impact its operations:

	Change in U.S. dollar to Russian ruble exchange rate			Effect ((decrease)/ increase) on profit before tax			Change in Euro to Russian ruble exchange rate			Effect ((decrease)/ increase) on profit before tax
2016
		+20	%		(24,811	)		+20	%		(4,654	)
		-20	%		24,811			-20	%		4,654
2017
		+10	%		(11,785	)		+10	%		(2,674	)
		-10	%		11,785			-10	%		2,674
2018
		+14	%		(7,672	)		+14	%		(14,098	)
		-14	%		7,672			-14	%		14,098

Schedule of Information About Sensitivity to Change of Floating Rates

The table below demonstrates the Group’s sensitivity to the change of floating rates.

	Increase/decrease in Mosprime and the key rate of the Central Bank of Russian Federation (%)			Effect ((decrease)/ increase) on profit before tax			Increase/ decrease in LIBOR (%)			Effect ((decrease)/ increase) on profit before tax			Increase/ decrease in EURIBOR (%)			Effect ((decrease)/ increase) on profit before tax
2016
		+2.00	%		(4,943	)		+0.60	%		(736	)		+0.12	%		(28	)
		-4.00	%		9,887			-0.08	%		98			-0.08	%		19
2017
		+1.00	%		(2,744	)		+0.48	%		(500	)		+0.04	%		(8	)
		-2.00	%		5,488			-0.24	%		250			-0.08	%		16
2018
		+0.75	%		(1,922	)		+0.50	%		(226	)		+0.20	%		(190	)
		-1.00	%		2,563			-0.15	%		68			-0.01	%		9

Summary of Future Minimum Lease Payments under Finance Leases Together with Present Value of Net Minimum Lease Payments

 Future minimum lease payments under finance leases together with the present value of the net minimum lease payments were as follows:

	Minimum payments						Present value of payments
	December 31, 2018			December 31, 2017			December 31, 2018		December 31, 2017
Payable in 1 year		6,849			8,700			5,880		7,476
Payable in 2 years		908			633			702		457
Payable in 3 years		886			584			751		458
Payable in 4 years		745			557			680		481
Payable in 5 years and thereafter		350			526			280		482
Total minimum lease payment		9,738			11,000			8,293		9,354
Less amounts representing finance charges		(1,445	)		(1,646	)
Present value of finance lease liabilities		8,293			9,354			8,293		9,354
Current portion of finance lease liabilities								5,880		7,476
Non-current portion of finance lease liabilities								2,413		1,878