NEW YORK (TheStreet) -- Mechel (MTL) - Get Report shares are up $15.78% to $1.03 in early market trading on Thursday after the Russia's industry minister announced that the struggling Russian coal and steel producer would be added to the list of companies receiving state aid as Russia fights to stave off an economic crisis.
The companies on the list who will receive state aid have been designated as being integral to the country's economy and will have their loans guaranteed by the state, according to Reuters.
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The guaranteed loans are part of a $35 billion cash infusion by the state as it suffers from the economic after effects of falling world crude prices as well as increased sanctions from the West over the country's involvement in the Ukraine border dispute.
In addition to the guaranteed loans, Russia plans to use the money to recapitalize its banks, finance investment projects and pay for the state pension program, according to the BBC.
The plan also calls for public sector spending cuts of 10% and 5% over the next two years respectively, though the spending cuts have not yet been approved by the country's parliament.