Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Mechel PAO |
Entity Central Index Key | 0001302362 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 416,270,745 |
Entity Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Document Accounting Standard | International Financial Reporting Standards |
Entity Incorporation, State or Country Code | 1Z |
Document Annual Report | true |
Entity Address, Country | RU |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Title of 12(b) Security | COMMON SHARES |
No Trading Symbol Flag | true |
Security Exchange Name | NYSE |
Preferred Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 138,756,915 |
Title of 12(b) Security | PREFERRED SHARES |
No Trading Symbol Flag | true |
Security Exchange Name | NYSE |
Common American Depositary Shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | COMMON AMERICAN DEPOSITARY SHARES, EACH COMMON ADS REPRESENTING TWO |
Trading Symbol | MTL |
Security Exchange Name | NYSE |
Preferred American Depositary Shares [Member] | |
Document Information [Line Items] | |
Title of 12(b) Security | PREFERRED AMERICAN DEPOSITARY SHARES, EACH PREFERRED ADS REPRESENTING ONE-HALF |
Trading Symbol | MTL PR |
Security Exchange Name | NYSE |
Consolidated Statement of Profi
Consolidated Statement of Profit (Loss) and Other Comprehensive Income - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | |||
Revenue from contracts with customers | ₽ 296,567 | ₽ 312,574 | ₽ 299,113 |
Cost of sales | (187,857) | (177,756) | (160,356) |
Gross profit | 108,710 | 134,818 | 138,757 |
Selling and distribution expenses | (54,320) | (54,988) | (55,686) |
Impairment of goodwill and other non-current assets, net | (1,804) | (7,222) | (6,081) |
Allowance for expected credit losses on financial assets | (235) | (940) | (332) |
Taxes other than income taxes | (5,282) | (4,834) | (4,967) |
Administrative and other operating expenses | (16,316) | (18,765) | (15,911) |
Other operating income | 745 | 1,711 | 1,387 |
Total selling, distribution and operating income and (expenses), net | (77,212) | (85,038) | (81,590) |
Operating profit | 31,498 | 49,780 | 57,167 |
Finance income | 600 | 34,056 | 633 |
Finance costs including fines and penalties on overdue loans and borrowings and lease payments | (38,830) | (42,052) | (47,610) |
Foreign exchange gain (loss), net | 19,241 | (25,775) | 4,237 |
Share of profit of associates, net | 28 | 10 | 18 |
Other income | 239 | 512 | 1,495 |
Other expenses | (504) | (314) | (220) |
Total other income and (expense), net | (19,226) | (33,563) | (41,447) |
Profit before tax | 12,272 | 16,217 | 15,720 |
Income tax expense | (7,987) | (2,681) | (3,150) |
Profit for the period | 4,285 | 13,536 | 12,570 |
Attributable to: | |||
Equity shareholders of Mechel PAO | 2,409 | 12,628 | 11,557 |
Non-controlling interests | 1,876 | 908 | 1,013 |
Other comprehensive income | |||
Other comprehensive (loss) income that may be reclassified to profit or loss in subsequent periods, net of income tax: | (1,771) | (9) | 313 |
Exchange differences on translation of foreign operations | (1,771) | (9) | 313 |
Other comprehensive income (loss) not to be reclassified to profit or loss in subsequent periods, net of income tax: | (867) | 487 | 145 |
Re-measurement of defined benefit plans | (867) | 487 | 145 |
Other comprehensive (loss) income for the period, net of tax | (2,638) | 478 | 458 |
Total comprehensive income for the period, net of tax | 1,647 | 14,014 | 13,028 |
Attributable to: | |||
Equity shareholders of Mechel PAO | (210) | 13,096 | 12,012 |
Non-controlling interests | ₽ 1,857 | ₽ 918 | ₽ 1,016 |
Earnings per share | |||
Weighted average number of common shares | 416,256,510 | 416,270,745 | 416,270,745 |
Earnings per share (Russian rubles per share) attributable to common equity shareholders, basic and diluted | ₽ 5.79 | ₽ 30.34 | ₽ 27.76 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current assets | ||
Property, plant and equipment | ₽ 196,992 | ₽ 189,879 |
Mineral licenses | 31,075 | 32,068 |
Goodwill and other intangible assets | 13,652 | 16,883 |
Investments in associates | 321 | 293 |
Deferred tax assets | 3,648 | 5,488 |
Other non-current assets | 553 | 630 |
Non-current financial assets | 232 | 244 |
Total non-current assets | 246,473 | 245,485 |
Current assets | ||
Inventories | 39,773 | 43,423 |
Income tax receivables | 65 | 121 |
Trade and other receivables | 15,340 | 17,612 |
Other current assets | 6,982 | 8,673 |
Other current financial assets | 363 | 508 |
Cash and cash equivalents | 3,509 | 1,803 |
Total current assets | 66,032 | 72,140 |
Total assets | 312,505 | 317,625 |
Equity | ||
Treasury shares | (63) | |
Additional paid-in capital | 24,434 | 24,378 |
Accumulated other comprehensive (loss) income | (848) | 1,771 |
Accumulated deficit | (273,754) | (274,186) |
Equity attributable to equity shareholders of Mechel PAO | (245,228) | (243,041) |
Non-controlling interests | 11,631 | 9,846 |
Total equity | (233,597) | (233,195) |
Non-current liabilities | ||
Loans and borrowings | 7,205 | 6,538 |
Lease liabilities | 7,002 | 2,413 |
Other non-current financial liabilities | 48,303 | 44,510 |
Other non-current liabilities | 105 | 120 |
Pension obligations | 4,933 | 3,819 |
Provisions | 5,238 | 3,719 |
Deferred tax liabilities | 13,877 | 13,506 |
Total non-current liabilities | 86,663 | 74,625 |
Current liabilities | ||
Loans and borrowings, including interest payable, fines and penalties on overdue amounts of RUB 11,111 million and RUB 9,877 million as of December 31, 2019 and 2018, respectively | 381,317 | 412,294 |
Trade and other payables | 38,391 | 34,800 |
Lease liabilities | 10,353 | 5,880 |
Income tax payable | 9,161 | 6,425 |
Taxes and similar charges payable other than income tax | 9,228 | 6,106 |
Advances received and other current liabilities | 5,816 | 5,096 |
Pension obligations | 615 | 772 |
Provisions | 4,558 | 4,822 |
Total current liabilities | 459,439 | 476,195 |
Total liabilities | 546,102 | 550,820 |
Total equity and liabilities | 312,505 | 317,625 |
Common shares [member] | ||
Equity | ||
Equity shares | 4,163 | 4,163 |
Preferred shares [member] | ||
Equity | ||
Equity shares | ₽ 840 | ₽ 833 |
Consolidated Statement of Fin_2
Consolidated Statement of Financial Position (Parenthetical) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of financial position [abstract] | ||
Interest payable, fines and penalties | ₽ 11,111 | ₽ 9,877 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - RUB (₽) ₽ in Millions | Total | Common shares [member] | Preferred shares [member] | Treasury shares [member] | Additional paid-in capital [member] | Accumulated other comprehensive income (loss) [member] | Accumulated deficit [member] | Equity attributable to shareholders of Mechel PAO [member] | Non-controlling interest [member] |
Beginning balance at Dec. 31, 2016 | ₽ (252,588) | ₽ 4,163 | ₽ 833 | ₽ 28,326 | ₽ 848 | ₽ (294,444) | ₽ (260,274) | ₽ 7,686 | |
Beginning balance, shares at Dec. 31, 2016 | 416,270,745 | 83,254,149 | |||||||
Profit for the period | 12,570 | 11,557 | 11,557 | 1,013 | |||||
Other comprehensive income (loss) | |||||||||
Re-measurement losses on defined benefit plans | 145 | 145 | 145 | ||||||
Exchange differences on translation of foreign operations | 313 | 310 | 310 | 3 | |||||
Total comprehensive income for the period | 13,028 | 455 | 11,557 | 12,012 | 1,016 | ||||
Dividends declared to equity shareholders of Mechel PAO | (856) | (856) | (856) | ||||||
Dividends declared to non-controlling interests | (359) | (359) | |||||||
Change in non-controlling interests | (3,358) | (3,948) | (3,948) | 590 | |||||
Ending balance (Adjustment on inital application of IFRS 9 [member]) at Dec. 31, 2017 | (1,689) | (1,684) | (1,684) | (5) | |||||
Ending balance (As of January 1, 2018 adjusted for the effect of IFRS 9 [member]) at Dec. 31, 2017 | (245,822) | ₽ 4,163 | ₽ 833 | 24,378 | 1,303 | (285,427) | (254,750) | 8,928 | |
Ending balance at Dec. 31, 2017 | (244,133) | ₽ 4,163 | ₽ 833 | 24,378 | 1,303 | (283,743) | (253,066) | 8,933 | |
Ending balance, shares (As of January 1, 2018 adjusted for the effect of IFRS 9 [member]) at Dec. 31, 2017 | 416,270,745 | 83,254,149 | |||||||
Ending balance, shares at Dec. 31, 2017 | 416,270,745 | 83,254,149 | |||||||
Profit for the period | 13,536 | 12,628 | 12,628 | 908 | |||||
Other comprehensive income (loss) | |||||||||
Re-measurement losses on defined benefit plans | 487 | 487 | 487 | ||||||
Exchange differences on translation of foreign operations | (9) | (19) | (19) | 10 | |||||
Total comprehensive income for the period | 14,014 | 468 | 12,628 | 13,096 | 918 | ||||
Dividends declared to equity shareholders of Mechel PAO | (1,387) | (1,387) | (1,387) | ||||||
Ending balance (Adjustment on inital application of IFRS 16 [member]) at Dec. 31, 2018 | (533) | (461) | (461) | (72) | |||||
Ending balance (As of January 1, 2019 adjusted for the effect of IFRS 16 [member]) at Dec. 31, 2018 | (233,728) | ₽ 4,163 | ₽ 833 | 24,378 | 1,771 | (274,647) | (243,502) | 9,774 | |
Ending balance at Dec. 31, 2018 | (233,195) | ₽ 4,163 | ₽ 833 | 24,378 | 1,771 | (274,186) | (243,041) | 9,846 | |
Ending balance, shares (As of January 1, 2019 adjusted for the effect of IFRS 16 [member]) at Dec. 31, 2018 | 416,270,745 | 83,254,149 | |||||||
Ending balance, shares at Dec. 31, 2018 | 416,270,745 | 83,254,149 | |||||||
Profit for the period | 4,285 | 2,409 | 2,409 | 1,876 | |||||
Other comprehensive income (loss) | |||||||||
Re-measurement losses on defined benefit plans | (867) | (848) | (848) | (19) | |||||
Exchange differences on translation of foreign operations | (1,771) | (1,771) | (1,771) | ||||||
Total comprehensive income for the period | 1,647 | (2,619) | 2,409 | (210) | 1,857 | ||||
Sale of preferred shares kept as treasury shares by the Group shares | 709,130 | ||||||||
Sale of preferred shares kept as treasury shares by the Group value | 63 | ₽ 7 | 56 | 63 | |||||
Reacquired common shares value | (63) | ₽ (63) | (63) | ||||||
Reacquired common shares shares | (1,018,996) | ||||||||
Dividends declared to equity shareholders of Mechel PAO | (1,516) | (1,516) | (1,516) | ||||||
Ending balance at Dec. 31, 2019 | ₽ (233,597) | ₽ 4,163 | ₽ 840 | ₽ (63) | ₽ 24,434 | ₽ (848) | ₽ (273,754) | ₽ (245,228) | ₽ 11,631 |
Ending balance, shares at Dec. 31, 2019 | 416,270,745 | 83,963,279 | (1,018,996) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Profit for the period | ₽ 4,285 | ₽ 13,536 | ₽ 12,570 |
Adjustments to reconcile profit to net cash provided by operating activities | |||
Depreciation of property, plant and equipment and amortisation of mineral licenses and other intangible assets | 15,176 | 13,859 | 14,227 |
Foreign exchange (gain) loss, net | (19,241) | 25,775 | (4,237) |
Deferred income tax expense (benefit) | 2,288 | (2,596) | (3,401) |
Changes in allowance for expected credit losses and write-off of trade and other receivables and payables, net | 73 | 517 | (522) |
Write-off of inventories to net realisable value | 1,763 | 1,162 | 470 |
Impairment of goodwill and other non-current assets, net and loss on write-off of non-current assets | 2,880 | 7,953 | 6,423 |
Finance income | (600) | (34,056) | (633) |
Finance costs including fines and penalties on overdue loans and borrowings and lease payments | 38,830 | 42,052 | 47,610 |
Provisions for legal claims, taxes and other provisions | 3,630 | 4,940 | 4,222 |
Other | 198 | 575 | (228) |
Changes in working capital items | |||
Trade and other receivables | 1,546 | 1,354 | (318) |
Inventories | (1,511) | (7,858) | (4,508) |
Trade and other payables | 4,037 | 4,150 | (3,435) |
Advances received | 650 | 485 | 625 |
Taxes payable and other liabilities | 5,151 | 683 | (158) |
Other assets | 1,238 | (851) | (895) |
Income tax paid | (2,735) | (3,562) | (4,530) |
Net cash provided by operating activities | 57,658 | 68,118 | 63,282 |
Cash flows from investing activities | |||
Loans issued and other investments | (525) | ||
Interest received | 76 | 188 | 165 |
Royalty and other proceeds associated with disposal of subsidiaries | 17 | 3 | 568 |
Proceeds from loans issued and other investments | 313 | 9 | 144 |
Proceeds from disposals of property, plant and equipment | 211 | 215 | 328 |
Purchases of property, plant and equipment | (6,282) | (5,472) | (6,460) |
Purchases of intangible assets | (150) | (771) | |
Interest paid, capitalised | (256) | (440) | (587) |
Net cash used in investing activities | (5,921) | (5,647) | (7,138) |
Cash flows from financing activities | |||
Proceeds from loans and borrowings, including proceeds from factoring arrangement of RUB 214 million, RUB 918 million and RUB 272 million for the periods ended December 31, 2019, 2018 and 2017, respectively | 7,599 | 76,504 | 23,200 |
Repayment of loans and borrowings, including payments from factoring arrangement of RUB 2,222 million, RUB 435 million and RUB 1,123 million for the periods ended December 31, 2019, 2018 and 2017, respectively | (20,772) | (97,269) | (35,033) |
Repayment of other current financial liabilities | (442) | ||
Dividends paid to shareholders of Mechel PAO | (1,515) | (1,386) | (856) |
Dividends paid to non-controlling interests | (16) | (8) | (122) |
Interest paid, including fines and penalties | (30,923) | (33,308) | (31,948) |
Acquisition of non-controlling interests in subsidiaries | 0 | (3,358) | |
Repayment of lease liabilities | (2,276) | (2,780) | (3,513) |
Effect of sale and leaseback transactions | 248 | ||
Deferred payments for acquisition of assets | (341) | (629) | (455) |
Deferred consideration paid for the acquisition of subsidiaries in prior periods | (361) | (3,968) | (3,652) |
Net cash used in financing activities | (48,357) | (63,286) | (55,737) |
Foreign exchange (gain) loss on cash and cash equivalents, net | (891) | 63 | (637) |
Changes in allowance for expected credit losses on cash and cash equivalents | (2) | (91) | |
Net increase (decrease) in cash and cash equivalents | 2,487 | (843) | (230) |
Cash and cash equivalents at beginning of period | 1,803 | 2,452 | 1,689 |
Cash and cash equivalents, net of overdrafts at beginning of period | 380 | 1,223 | 1,453 |
Cash and cash equivalents at end of period | 3,509 | 1,803 | 2,452 |
Cash and cash equivalents, net of overdrafts at end of period | ₽ 2,867 | ₽ 380 | ₽ 1,223 |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Parenthetical) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of cash flows [abstract] | |||
Proceeds from factoring arrangement | ₽ 214 | ₽ 918 | ₽ 272 |
Payments from factoring arrangement | ₽ 2,222 | ₽ 435 | ₽ 1,123 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Corporate information | 1. Corporate information (a) Information Mechel PAO (“Mechel”, formerly – Mechel OAO and Mechel Steel Group OAO) was incorporated on March 19, 2003, under the laws of the Russian Federation in connection with a reorganization to serve as a holding company for various steel and mining companies owned by two individual shareholders (the “Controlling Shareholders”). During 2006, one of the Controlling Shareholders sold all his Mechel’s stock to the other Controlling Shareholder, Igor V. Zyuzin. Igor V. Zyuzin with his family members is the ultimate controlling party. In accordance with the changes in the Civil Code of the Russian Federation Mechel has registered changes in its Charter on March 17, 2016 and changed its name from Mechel OAO to Mechel PAO. The registered office is located at Krasnoarmeyskaya St. 1, Moscow, 125167, Russian Federation. Mechel and its subsidiaries are collectively referred to herein as the “Group”. Set forth below is a summary of the Group’s primary subsidiaries: Name of subsidiary Registered in Core business Date control Interest in voting stock held Southern Kuzbass Coal Company (SKCC) Russia Coal mining January 1999 99.1 % Chelyabinsk Metallurgical Plant (CMP) Russia Steel products December 2001 94.2 % Vyartsilya Metal Products Plant (VMPP) Russia Steel products May 2002 93.3 % Beloretsk Metallurgical Plant (BMP) Russia Steel products June 2002 94.8 % Urals Stampings Plant (USP) Russia Steel products April 2003 93.8 % Korshunov Mining Plant (KMP) Russia Iron ore mining October 2003 90.0 % Mechel Nemunas (MN) Lithuania Steel products October 2003 100.0 % Mechel Energo Russia Power sales February 2004 100.0 % Port Posiet Russia Transshipment February 2004 97.8 % Izhstal Russia Steel products May 2004 90.0 % Port Kambarka Russia Transshipment April 2005 90.4 % Mechel Service Russia Trading May 2005 100.0 % Mechel Coke Russia Coke production June 2006 100.0 % Moscow Coke and Gas Plant (Moskoks) Russia Coke production October 2006 99.5 % Southern Kuzbass Power Plant (SKPP) Russia Power generation April 2007 98.3 % Kuzbass Power Sales Company (KPSC) Russia Electricity distribution June 2007 72.1 % Bratsk Ferroalloy Plant (BFP) Russia Ferrosilicon production August 2007 100.0 % Yakutugol Russia Coal mining October 2007 100.0 % Port Temryuk Russia Transshipment March 2008 100.0 % Mechel Carbon AG Switzerland Trading April 2008 100.0 % HBL Holding GmbH (HBL) Germany Trading September 2008 100.0 % Mechel Service Stahlhandel Austria GmbH and its subsidiaries Austria Trading September 2012 100.0 % Elgaugol Russia Coal mining August 2013 51.0 %** Elga-road Russia Railroad transportation January 2016 51.0 %** * Date, when a control interest was acquired or a new company established. ** In 2016, the Group sold 49% stakes in Elgaugol and Elga-road to Gazprombank. Simultaneously with this transaction, the Group granted to Gazprombank a put option to sell 49% stakes in these companies to the Group. The transaction in fact represents a financial liability, and these entities are consolidated based on 100% ownership (Note 10.4). (b) Business The Group operates in three business segments: steel (comprising steel and steel products), mining (comprising coal, iron ore and coke) and power (comprising electricity (generation and distribution) and heat power generation), and conducts operations in Russia, the CIS countries, Europe and Asia Pacific. The Group sells its products within Russia and foreign markets. Through acquisitions, the Group has added various businesses to explore new opportunities and build an integrated Group of steel, mining, ferroalloy and power companies. The Group operates in a highly competitive and cyclical industry; any local or global downturn in the industries may have an adverse effect on the Group’s results of operations and financial condition. While the Group will utilize funds from operations, it expects to continue to rely on operating cash flow and long-term debt to finance major investment projects, focus on refinancing and restructuring of the loan portfolio and other financing sources for its capital needs. As discussed in Notes 4 and 5, management believes that the Group will secure adequate financing. (c) Authorisation for issuance These consolidated financial statements as of December 31, 2019 and for the year then ended were authorised for issuance on March 19, 2020. |
Basis of preparation of the con
Basis of preparation of the consolidated financial statements | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Basis of preparation of the consolidated financial statements | 2. Basis of preparation of the consolidated financial statements (a) Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared on a historical cost basis, except for specific financial assets and liabilities that have been measured at fair value. Russian associates and subsidiaries of the Group maintain their books and records in Russian rubles and prepare accounting reports in accordance with the accounting principles and practices mandated by Russian Accounting Standards (RAS). Foreign subsidiaries and associates maintain their books and records in different foreign functional currencies and prepare accounting reports in accordance with generally accepted accounting principles (GAAP) in various jurisdictions. The financial statements and accounting reports for the Group and its subsidiaries and associates for the purposes of preparation of the consolidated financial statements in accordance with IFRS have been translated and adjusted on the basis of the respective standalone RAS or other GAAP financial statements. The accompanying consolidated financial statements differ from the financial statements issued for the RAS and other GAAP purposes in that they reflect certain adjustments, not recorded in the statutory books, which are appropriate to present the financial position, results of operations and cash flows in accordance with IFRS. The principal adjustments relate to: (1) purchase accounting; (2) recognition of interest expense and certain operating expenses; (3) valuation and depreciation of property, plant and equipment and mineral licenses; (4) defined benefit plans and other long-term benefits; (5) foreign currency translation; (6) deferred income taxes; (7) accounting for tax penalties, uncertainties and contingencies; (8) revenue recognition; (9) valuation allowances for unrecoverable assets; (10) accounting for financial instruments; (11) leases and (12) recording investments at fair value. The consolidated financial statements of the Group comply with the Russian Federal Law No. 208 On Consolidated Financial Statements “208-FZ”), 208-FZ (b) Basis of consolidation The consolidated financial statements comprise the financial statements of the Group and its subsidiaries for the year ended December 31, 2019. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has: • Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); • Exposure, or rights, to variable returns from its involvement with the investee; • The ability to use its power over the investee to affect its returns. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling non-controlling A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of significant accounting policies | 3. Summary of significant accounting policies (a) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as of the acquisition date. Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IFRS 9 Financial Instruments Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests) and any previous interest held over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in the consolidated statement of profit (loss) and other comprehensive income. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained. (b) Investments in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. The considerations made in determining significant influence are similar to those necessary to determine control over subsidiaries. The Group’s investments in its associate are accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for impairment separately. The consolidated statement of profit (loss) and other comprehensive income reflects the Group’s share of the results of operations of the associate. Any change in OCI of those investees is presented as part of the Group’s OCI movements. In addition, when there has been a change recognised directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate. The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the consolidated statement of profit (loss) and other comprehensive income outside operating profit and represents profit or loss after tax and non-controlling The financial statements of the associate are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the investment in associate and its carrying value, and then recognises the loss as ‘Share of profit (loss) of associates’ in the consolidated statement of profit (loss) and other comprehensive income. Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognised in the consolidated statement of profit (loss) and other comprehensive income. (c) Current versus non-current classification The Group presents assets and liabilities in the consolidated statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realised or intended to be sold or consumed in the normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realised within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Group classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. (d) Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities; • Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; • Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognised in the consolidated financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. (e) Revenue from contracts with customers Revenue from contracts with customers is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. Revenue from contracts with customers is inflows from sales of goods that constitute ongoing major operations of the Group and is reported as such in the consolidated statement of profit (loss) and other comprehensive income. Inflows from incidental and peripheral operations, net of related costs, are considered gains and are included in other operating income and other income in the consolidated statement of profit (loss) and other comprehensive income. The following criteria are also applicable to other specific revenue transactions from contracts with customers: Sales of goods and rendering services Revenue from the sale of goods and rendering services is recognised when (or as) the Group satisfies a performance obligation by transferring promised goods and services to a customer. An asset is transferred when (or as) the customer obtains control of the asset. The Group is engaged into contracts for sales of goods which include transportation and freight services. In these contracts the Group accounts for two separate performance obligations: the obligation to provide goods to the customer and the obligation to arrange the delivery (transportation, freight) of goods to the customer. Revenue is recognised at a point of time when control over the goods passes to the customer (at the loading port, place or after delivery to the first carrier). Revenue related to freight and transportation component is recognised over time as the service is rendered. Revenue from the sale of goods and rendering services is measured at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services, net of returns and allowances, trade discounts, associated sales taxes (VAT) and export duties. Certain contracts are provisionally priced so that price is not settled until the final price based on the market price for the relevant period is determined. Revenue from these transactions is initially recognised based on related coal market indices. An adjustment to the final price on provisionally priced contracts is recorded in revenue. Sales of power In the Power segment (Note 25), revenue is recognised based on unit of power measure (kilowatts) delivered to customers, since at that point revenue recognition criteria are met. The billings are usually done on a monthly basis, several days after each month end. Variable consideration If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. Some contracts with customers provide a right of return, trade discounts or volume rebates. IFRS 15 Revenue from Contracts with customers Significant financing component The Group decided to use the practical expedient provided in IFRS 15, which allows not to adjust the promised amount of consideration for the effects of a significant financing component in the contracts where the Group expects, at contract inception, that the period between the Group’s transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Warranty obligations The Group provides warranties to its customers under the Russian Federation Law requirements. These warranties represent assurance type warranties and do not require providing any additional service to the Group’s customers. This type of warranties is accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets Trade receivables A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in Note 3 (n). The disclosure of significant accounting judgements relating to revenue from contracts with customers is provided in Note 3 (u). (f) Taxes Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable income. Uncertain tax positions The Group’s policy is to comply fully with the applicable tax regulations in the jurisdictions in which its operations are subject to income taxes. The Group’s estimates of current income tax expense and liabilities are calculated assuming that all tax computations filed by the Group’s subsidiaries will be subject to a review or audit by the relevant tax authorities. The Group and the relevant tax authorities may have different interpretations of how regulations should be applied to actual transactions. Such uncertain tax positions are accounted for in accordance with IAS 12 Income Taxes Deferred tax Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except: • When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. • In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except: • When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. • In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside profit or loss is recognised in correlation to the underlying transaction either in OCI or directly in equity. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. (g) Foreign currencies The Group’s consolidated financial statements are presented in Russian rubles to comply with the Law 208-FZ. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currencies of the main Russian and European subsidiaries of the Group are the Russian ruble and euro, respectively. The U.S. dollar is the functional currency of other main international operations of the Group. The Group uses the direct method of consolidation and on disposal of a foreign operation; the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method. (i) Transactions and balances Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency exchange rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rates as of the reporting date. Differences arising on settlement or translation of monetary items are recognised in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The following table presents the exchange rates for the functional and operating currencies at various subsidiaries, other than the presentation currency: Exchange rates* at Average exchange rates* Currency December 31, December 31, December 31, December 31, December 31, U.S. dollar 61.91 69.47 64.74 62.71 58.35 Euro 69.34 79.46 72.50 73.95 65.90 (*) Exchange rates shown in Russian rubles for one currency unit. The majority of the balances and operations not already denominated in the presentation currency were denominated in the U.S. dollar and euro. The Russian ruble is not a convertible currency outside the territory of Russia. Official exchange rates are determined daily by the Central Bank of the Russian Federation (“CBR”) and are generally considered to be a reasonable approximation of market rates. (ii) Group companies On consolidation, the assets and liabilities of foreign operations are translated into the Russian rubles at the rate of exchange prevailing at the reporting date and their statements of profit (loss) and other comprehensive income are translated at the average exchange rate for the period. The exchange differences arising on translation for consolidation are recognised in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is recognised in profit or loss. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and translated at the exchange rate as of the reporting date. (h) Non-current assets held for sale and discontinued operations The Group classifies non-current assets (or disposal group) as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Such non-current assets (or disposal group) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups). For the sale to be highly probable, the appropriate level of management must be committed to a plan to sell the asset (or disposal group), and an active program to locate a buyer and complete the plan must have been initiated. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale. Assets and liabilities classified as held for sale are presented separately as current items in the consolidated statement of financial position. A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and: • Represents a separate major line of business or geographical area of operations; • Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or • Is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the consolidated statement of profit (loss) and other comprehensive income. (i) Mineral licenses The Group’s mining segment production activities are located within Russia. The Group’s mineral reserves and deposits are situated on the land belonging to government and regional authorities. Mining minerals requires a subsoil license from the state authorities with respect to identified mineral deposits. The Group obtains licenses from such authorities and pays certain taxes to explore and produce from these deposits. These licenses expire up to 2038, with the most significant licenses expiring between 2024 and 2033, and management believes that they may be extended at the initiative of the Group without substantial cost, based on previous experience. Management intends to extend such licenses for deposits expected to remain productive subsequent to their license expiry dates. Mineral licenses acquired separately are measured on initial recognition at cost. The cost of mineral licenses acquired in a business combination is their fair value at the date of acquisition. Mineral licenses are amortised under a unit of production basis over proved and probable reserves of the relevant area. In order to calculate proved and probable reserves, estimates and assumptions are used about a range of geological, technical and economic factors, including but not limited to quantities, grades, production techniques, recovery rates, production costs, transport costs, commodity demand, commodity prices and exchange rates. There are numerous uncertainties inherent in estimating proved and probable reserves, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. The Group established a policy according to which internal mining engineers review proved and probable reserves annually. This policy does not change the Group’s approach to the measurement of proved and probable reserves as of their acquisition dates as part of business combinations that involve independent mining engineers. The Group’s proved and probable reserve estimates as of the reporting date were made by internal mining engineers and the majority of the assumptions underlying these estimates had been previously reviewed and verified by independent mining engineers. The carrying values of the mineral licenses were reduced proportionate to the depletion of the respective mineral reserves at each deposit related to mining and production of reserves adjusted for the reserves re-measurement and purchase accounting effects. Reduction in carrying values of the mineral licenses is included in the amortisation charge proportional to the depletion for the period within the cost of sales in the consolidated statement of profit (loss) and other comprehensive income. No residual value is assumed in the mineral license valuation. (j) Property, plant and equipment Property, plant and equipment and construction in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of the rehabilitation provision, and, for qualifying assets (where relevant), borrowing costs and other costs incurred in connection with the borrowings. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. When significant parts of property, plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the property, plant and equipment as a replacement if the recognition criteria are satisfied. Where a separately depreciated asset, or part of an asset, is replaced, the expenditure is capitalised. Where part of the asset was not separately considered as a component and therefore not depreciated separately, the replacement value adjusted for prices inflation is used to estimate the carrying amount of the replaced asset(s) which is immediately written off. All other repair and maintenance costs are recognised in the consolidated statement of profit (loss) and other comprehensive income as incurred. The capitalised value of right-of-use assets is also included in property, plant and equipment. The present value of the expected cost for the rehabilitation of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. Inventories planned to be used for construction and spare parts with useful lives over one year are recorded within property, plant and equipment. Mining assets and processing plant and equipment Mining assets and processing plant and equipment are those assets, including construction in progress, which are intended to be used only for the needs of a certain mine or field, and upon full extraction exhausting of the reserves of such mine or the field, these assets cannot be further used for any other purpose without a capital reconstruction. Items of production mines are stated at cost, less accumulated depreciation and accumulated impairment losses, if any. Costs of developing new underground mines are capitalized. Underground development costs, which are costs incurred to make the mineral physically accessible, include costs to prepare property for shafts, driving main entries for ventilation, haulage, personnel, construction of airshafts, roof protection and other facilities. Additionally, interest expense subject to allocation to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use. Exploration and evaluation activity involves the search for mineral resources, the determination of technical feasibility and the assessment of commercial viability of identified proved and probable reserves. Once the legal right to explore has been acquired, exploration and evaluation expenditure is charged to profit or loss as incurred, unless the Group concludes that a future economic benefit is more likely than not to be realized. As part of its surface mining operations, the Group incurs stripping costs both during the development phase and production phase of its operations. Stripping costs incurred in the development phase of a mine, before the production phase commences, are capitalized as part of cost of constructing the mine. In general case, the capitalization of development stripping costs ceases when the mine is commissioned and ready for use as intended by management. Stripping costs undertaken during the production phase of mine are charged to profit and loss as cost of sales as incurred. In some cases, the further development of a mine may require stripping operations, equivalent by scale to those that were incurred in the development phase of a mine. In such cases, production stripping costs are capitalized similarly to the capitalization of costs during the development phase of a mine. Stripping costs incurred in the production phase are capitalized, if all of the following criteria according to IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (a) it is probable that the future economic benefit associated with the stripping activity will flow to the entity; (b) the entity can identify the component of the ore body for which access has been improved; (c) the costs relating to the stripping activity associated with that component can be measured reliably. When mining assets and processing plant and equipment are placed in production, the applicable capitalized costs, including mine development costs, are depleted using the unit-of-production method at the ratio of tonnes of mineral mined or processed to the estimated proved and probable mineral reserves that are expected to be mined during the estimated lives of the mines. Capitalized production stripping costs are also depleted using the unit-of-production method on a basis consistent with the mine production and reserves to which they relate. The unit-of-production method is used for the underground mine development structure costs as their useful lives coincide with the estimated lives of mines, provided that all repairs and maintenance are timely carried out. A decision to abandon, reduce or expand activity on a specific mine is based upon many factors, including general and specific assessments of mineral reserves, anticipated future mineral prices, anticipated costs of developing and operating a producing mine, the expiration date of mineral licenses, and the likelihood that the Group will continue exploration on the mine. Based on the results at the conclusion of each phase of an exploration program, properties that are not economically feasible for production are re-evaluated to determine if future exploration is warranted and that carrying values are appropriate. The ultimate recovery of these costs depends on the discovery and development of economic ore reserves or the sale of the companies owning such mineral rights. Other property, plant and equipment Capitalized production costs for internally developed assets include material, direct labor costs, and allocated material and manufacturing direct overhead costs. When construction activities are performed over an extended period, borrowing costs incurred in connection with the borrowing of funds are capitalized. Construction-in-progress and equipment held for installation are not depreciated until the constructed or installed asset is substantially ready for its intended use. Property, plant and equipment other than mining assets and processing plant and equipment is depreciated using the straight-line method, apart from railway of the Elga coal deposit which is depreciated using the units of production method as discussed in (u) Significant accounting judgements, estimates and assumptions). Upon sale or retirement, the acquisition or production cost and related accumulated depreciation are removed from the consolidated statement of financial position and any gain or loss is included in the consolidated statement of profit (loss) and other comprehensive income. The following useful lives are used as a basis for calculating depreciation: Category of asset Useful economic Buildings and constructions 5-85 Operating machinery and equipment 2-30 Transportation vehicles 2-25 Other equipment 2-15 (k) Leases The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for conside |
Going concern
Going concern | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Going concern | 4. Going concern The Group’s total liabilities exceeded total assets by RUB 233,597 million as of December 31, 2019. As of December 31, 2019, the Group was not in compliance with the payment schedules under certain credit facilities and a number of financial and non-financial covenants contained in the Group’s loan agreements were breached, as further described in Note 5. These breaches constitute an event of default and, as a result, the lenders may request accelerated repayment of a substantial portion of the Group’s debt. As a result of these conditions, as of December 31, 2019, the Group’s debt payable on demand amounted to RUB 373,705 million, including RUB 220,046 million of long-term debt classified as short-term debt due to contractual cross-default provisions and RUB 2,097 million of fines and penalties accrued on overdue loans and overdue interest. As of the date of approval of the consolidated financial statements, the Group did not have sufficient own resources to enable it to comply with such accelerated repayment requests immediately or make payments within 12 months after the date of approval of these consolidated financial statements, in accordance with the repayment schedules agreed, pursuant to earlier loan restructurings. The Group is negotiating with Gazprombank and VTB to restructure and amend the terms and conditions of its existing debt to extend debt maturities beyond 12 months after the date of approval of these consolidated financial statements. In relation thereto, in January-February 2020, the Group requested and received consents from Gazprombank and VTB waiving the accelerated repayment of debt principal until April 1, 2020 and March 31, 2020, respectively, if interest and commissions were paid timely under the respective loan agreements. The Group has made such interest and commission payments on time. As part of its debt restructuring plans, the Group is considering the sale of certain assets. As such, in January 2020, the Group entered into negotiations relating to the sale of the Elga coal complex to a prospective buyer, which would allow the Group to reduce its debt burden. However, as of the date of approval of the consolidated financial statements, the Group has not agreed a binding sale and it is currently unclear if or when it will be able to conclude a sale of the Elga coal complex. As the sale of the Elga coal complex is currently included as part of the planned debt restructuring, if the sale does not go ahead as planned, the debt restructuring plan will need to be amended. Management has concluded that the existing uncertainty about the Group’s availability of free cash flow for repayment, its ability to refinance and restructure current liabilities described above and its ability to comply with financial and non-financial covenants contained in its loan agreements, represents a material uncertainty that may cast significant doubt upon the Group’s ability to continue as a going concern. As described above, management is in the process of and intends to achieve a debt restructuring with its lenders to enable the Group to continue in operational existence for at least 12 months after the date of approval of these consolidated financial statements. Management’s strategy also includes enhancement of steel production of the most profitable products, diversification of product range to quickly respond to market changes, and further development of the Group’s mining assets providing additional volumes of high-grade coking coal both to the Russian consumers and to exports markets. The Group has a history of successful negotiations of debt restructurings. However, if its ongoing discussions with the relevant lenders are unsuccessful or covenants continue to be breached and are not waived by the lenders, the related debt will continue to be payable on demand. In that situation, the Group will consider all available legal options to protect the Group’s operations while negotiating the terms of the restructuring of its debt. The economic environment and economic conditions in the major segments of the Group’s operations retain uncertainty about the level of demand for the Group’s products, the pricing of major products mined or manufactured by the Group, operating and financial results, the availability of free cash flow for repayment or ability to refinance and restructure current liabilities. The consolidated financial statements have been prepared assuming that the Group will continue as a going concern. Accordingly, the consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, the amounts and classification of liabilities or any other adjustments that might result from the Group being unable to continue as a going concern. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Capital management | 5. Capital management The equity capital of the Group was formed by injecting shares of its operating subsidiaries into Mechel PAO. This together with obtaining profits allowed the Group to raise debt to finance major investment projects as well as to acquire new companies. Although it has always been the Group’s priority to create and grow the shareholders’ value, during the past several years, the Group has become more focused on managing its debt, which has been the major source for expansion and growth. Metals and mining industry is known for its capital intensive investment cycle requiring secure long-term financing. In 2012-2015, high price volatility on the coal seaborne market and metal market resulted in the decrease in the Group’s operating profit and impairments of non-current Given current economic circumstances and the amount of debt, the Group’s primary objective is to focus on resolving the debt issues through a long-term restructuring of the loan portfolio and bringing down both cost of financing and actual interest payments as well as use of all available free cash flow for repayment of debt. The Group’s long-term policy is to maintain a strong capital base to maintain investor, creditor and market confidence and to ensure sustainable future development of the business. The Group’s management constantly monitors profitability and leverage ratios. The Group’s capital management is based on a number of covenants, of which ‘Net Debt to EBITDA’ and ‘EBITDA to Net Interest Expense’ are the main indicators the management uses for control. The level of dividends is monitored by the Board of Directors of the Group. The Group was required to comply with the following ratios under the most significant loan agreements with the Russian state-controlled banks as of December 31, 2019: Restrictive covenants Requirement Actual as of Group’s EBITDA to Net Interest Expense Shall not be less than 2.0:1.0 1.36:1.0 Group’s EBITDA to Consolidated Financial Expense Shall not be less than 2.0:1.0 1.40:1.0 Group’s Net Debt to EBITDA Not exceed 6.0:1.0 8.85:1.0 Group’s Total Debt to EBITDA Not exceed 3.5:1.0 8.51:1.0 Group’s Cash flow from operating activities to EBITDA Shall not be less than 0.8:1.0 1.08:1.0 Group’s EBITDA to Revenue Shall not be less than 0.2:1.0 0.18:1.0 The Group was required to comply with the following ratios under the most significant loan agreements with the Russian state-controlled banks as of December 31, 2018 1 Restrictive covenants Requirement Actual as of Group’s EBITDA to Net Interest Expense Shall not be less than 1.75:1.0 1.79:1.0 Group’s EBITDA to Consolidated Financial Expense Shall not be less than 1.75:1.0 1.82:1.0 Group’s Net Debt to EBITDA Not exceed 6.0:1.0 6.39:1.0 Group’s Total Debt to EBITDA Not exceed 4.5:1.0 6.25:1.0 Group’s Cash flow from operating activities to EBITDA Shall not be less than 0.8:1.0 0.90:1.0 Group’s EBITDA to Revenue Shall not be less than 0.2:1.0 0.24:1.0 In previous periods, following a sudden fall of the commodity markets the Group violated most of such covenants and defaulted on major credit facilities of interest and debt payments. Limited free cash flow available for debt service forced the Group to start negotiations with creditors about review of schedule of the debt maturity profile. Current restructuring arrangements with major creditors are aimed at rescheduling repayment of principal, gradual amortisation and decrease in interest payments by partial capitalization. The main goal for the Group is to achieve long-term restructuring of the loan portfolio with a gradual decrease in debt balance, which will permit to restore working capital The objectives, policies and processes for managing capital during the year ended December 31, 2019 and 2018 were not changed. 1 Detailed information in respect of restrictive covenant calculations is presented in Note 10.1. |
Material partly-owned subsidiar
Material partly-owned subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Material partly-owned subsidiaries | 6. Material partly-owned subsidiaries Financial information of subsidiaries that have material non-controlling interests is provided below. Proportion of equity interest held by non-controlling interests: Name At December 31, At December 31, SKCC and subsidiaries* 0.9 % 0.9 % Kuzbass Power Sales Company (KPSC) 27.9 % 27.9 % Chelyabinsk Metallurgical Plant (CMP) 5.8 % 5.8 % Southern Urals Nickel Plant (SUNP) 15.9 % 15.9 % Beloretsk Metallurgical Plant (BMP) 8.6 % 8.6 % Korshunov Mining Plant (KMP) 10.0 % 10.0 % Urals Stampings Plant (USP) 6.2 % 6.2 % Izhstal 10.0 % 10.0 % * Hereinafter SKCC and subsidiaries are represented by Southern Kuzbass Coal Company (SKCC), Tomusinsky Open Pit Mine (TOPM), Tomusinsky Energoupravlenie. The summarised financial information for these subsidiaries is provided below. This information is based on amounts before inter-company eliminations. Summarised statements of profit (loss) and other comprehensive income for 2019: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Revenue from contracts with customers 35,059 24,624 113,020 198 22,061 15,776 17,231 20,208 Cost of sales (21,667 ) (12,479 ) (101,258 ) (54 ) (19,263 ) (6,739 ) (12,330 ) (17,631 ) Total selling, distribution and operating expenses, net (7,264 ) (11,531 ) (11,406 ) (218 ) (1,749 ) (4,439 ) (1,157 ) 919 Total other income and (expense), net (233 ) 209 4,173 235 41 1,831 1,633 (99 ) Profit before tax 5,895 823 4,529 161 1,090 6,429 5,377 3,397 Income tax (expense) benefit (372 ) (174 ) (551 ) (37 ) (28 ) (271 ) (323 ) 97 Profit for the period 5,523 649 3,978 124 1,062 6,158 5,054 3,494 Total comprehensive income 5,523 649 3,978 124 1,062 6,158 5,054 3,494 Attributable to non-controlling interests 79 182 231 20 91 613 315 348 Dividends paid to non-controlling interests — — — — — — — — Summarised statements of profit (loss) and other comprehensive income for 2018: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Revenue from contracts with customers 32,251 24,084 124,372 88 25,899 9,989 16,549 21,173 Cost of sales (18,123 ) (12,077 ) (101,829 ) (47 ) (24,095 ) (6,222 ) (13,131 ) (19,392 ) Total selling, distribution and operating expenses, net (9,064 ) (11,894 ) (11,988 ) (170 ) (1,867 ) (4,250 ) (1,099 ) (2,498 ) Total other income and (expense), net (4,514 ) 343 (5,114 ) 722 1,034 2,103 2,090 (1,097 ) Profit (loss) before tax 550 456 5,441 593 971 1,620 4,409 (1,814 ) Income tax (expense) benefit (1,707 ) (94 ) 1,443 (115 ) (34 ) 46 (109 ) 228 (Loss) profit for the period (1,157 ) 362 6,884 478 937 1,666 4,300 (1,586 ) Total comprehensive (loss) income (1,157 ) 362 6,884 478 937 1,666 4,300 (1,586 ) Attributable to non-controlling interests 12 101 345 76 83 166 269 (154 ) Dividends paid to non-controlling interests — — — — — — — — Summarised statements of profit (loss) and other comprehensive income for 2017: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Revenue from contracts with customers 31,993 22,418 118,557 102 24,206 11,492 12,725 18,696 Cost of sales (18,173 ) (10,754 ) (102,398 ) (24 ) (21,464 ) (6,136 ) (10,089 ) (16,199 ) Total selling, distribution and operating expenses, net (7,844 ) (11,182 ) (11,894 ) (184 ) (1,634 ) (5,576 ) (909 ) (3,486 ) Total other income and (expense), net 12,769 340 (506 ) 531 379 2,913 1,382 (906 ) Profit (loss) before tax 18,745 822 3,759 425 1,487 2,693 3,109 (1,895 ) Income tax (expense) benefit (718 ) (170 ) 544 (85 ) (91 ) 212 (144 ) 194 Profit (loss) for the period 18,027 652 4,303 340 1,396 2,905 2,965 (1,701 ) Total comprehensive income (loss) 18,027 652 4,303 340 1,396 2,905 2,965 (1,701 ) Attributable to non-controlling interests 103 182 256 54 114 281 183 (170 ) Dividends paid to non-controlling interests 198 — — — — — — — Summarised statements of financial position as of December 31, 2019: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Current assets 74,924 4,373 46,448 3,301 14,127 20,413 15,374 4,049 Non-current assets 61,772 4,316 170,004 4,556 3,651 23,484 19,942 4,405 Current liabilities (135,625 ) (2,727 ) (177,585 ) (93 ) (5,308 ) (3,001 ) (5,504 ) (10,153 ) Non-current liabilities (6,626 ) (176 ) (2,757 ) (610 ) (261 ) (1,098 ) (422 ) (2,634 ) Total equity 5,555 (5,786 ) (36,110 ) (7,154 ) (12,209 ) (39,798 ) (29,390 ) 4,333 Attributable to: Equity shareholders of Mechel PAO 5,828 (4,176 ) (34,021 ) (6,019 ) (11,156 ) (35,836 ) (27,565 ) 3,908 Non-controlling interests (273 ) (1,610 ) (2,089 ) (1,135 ) (1,053 ) (3,962 ) (1,825 ) 425 Summarised statements of financial position as of December 31, 2018: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Current assets 49,771 3,735 38,571 1,507 9,594 13,863 10,217 5,171 Non-current assets 81,868 4,187 174,639 6,201 6,442 23,221 19,139 1,803 Current liabilities (101,714 ) (2,757 ) (176,114 ) (108 ) (4,751 ) (2,336 ) (4,870 ) (12,765 ) Non-current liabilities (40,888 ) (31 ) (4,921 ) (204 ) (141 ) (917 ) (137 ) (1,987 ) Total equity 10,963 (5,134 ) (32,175 ) (7,396 ) (11,144 ) (33,831 ) (24,349 ) 7,778 Attributable to: Equity shareholders of Mechel PAO 11,157 (3,706 ) (30,314 ) (6,223 ) (10,182 ) (30,462 ) (22,837 ) 7,010 Non-controlling interests (194 ) (1,428 ) (1,861 ) (1,173 ) (962 ) (3,369 ) (1,512 ) 768 Summarised cash flow information for the year ended December 31, 2019: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Operating 12,043 243 10,898 (146 ) (2,482 ) 2,867 1,375 2,839 Investing (950 ) (58 ) (3,522 ) 163 2,685 (2,627 ) (912 ) (72 ) Financing (10,945 ) (245 ) (7,108 ) (17 ) 505 (240 ) (199 ) (2,741 ) Increase (decrease) in cash and cash equivalents, net 148 (60 ) 268 — 708 — 264 26 Summarised cash flow information for the year ended December 31, 2018: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Operating 13,152 193 13,015 (264 ) (1,891 ) 1,325 3,950 1,647 Investing 547 (97 ) (76,283 ) 264 1,870 (1,003 ) (1,163 ) (89 ) Financing (13,651 ) (99 ) 63,200 — (169 ) (322 ) (2,829 ) (1,604 ) Increase (decrease) in cash and cash equivalents, net 48 (3 ) (68 ) — (190 ) — (42 ) (46 ) Summarised cash flow information for the year ended December 31, 2017: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Operating 3,434 112 8,036 (211 ) (1,221 ) 500 560 751 Investing 8,008 (38 ) (2,950 ) 210 1,477 (329 ) 949 73 Financing (11,445 ) (45 ) (4,826 ) — (323 ) (172 ) (1,590 ) (755 ) (Decrease) increase in cash and cash equivalents, net (3 ) 29 260 (1 ) (67 ) (1 ) (81 ) 69 |
Investments in associates
Investments in associates | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Investments in associates | 7. Investments in associates Investments in associates comprised of: Percent of shares held at Investment carrying value at Investee December 31, December 31, December 31, December 31, TPTU (Mining segment) 40 % 40 % 208 189 TRMZ (Mining segment) 25 % 25 % 113 104 Total investments in associates 321 293 TPTU (Tomusinskiy Transportation Management Center) shares are owned by SKCC. The core business is provision of transportation services. TRMZ (Tomusinskiy Auto Repair Shop) shares are owned by SKCC. TRMZ provides repair services. The following table shows movements in the investments in associates TPTU TRMZ Total December 31, 2016 175 90 265 Share of profit 9 9 18 December 31, 2017 184 99 283 Share of profit 5 5 10 December 31, 2018 189 104 293 Share of profit 19 9 28 December 31, 2019 208 113 321 |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Related party disclosures | 8. Related party disclosures Note 1 provides information about the Group’s structure, including details of the subsidiaries and the holding company. The following table provides the total amount of transactions that have been entered into with the related parties in 2019, 2018 and 2017. 2019 2018 2017 Purchases Sales Other loss Purchases Sales Other loss Purchases Sales Other loss Associates 110 98 — 121 103 (33 ) 230 134 (6 ) Controlling shareholders and entities under control of the Group’s Controlling shareholders 904 184 138 280 52 (9 ) 267 50 (33 ) Total 1,014 282 138 401 155 (42 ) 497 184 (39 ) As of December 31, 2019 and 2018, the Group had the following balances in settlement with related parties: December 31, 2019 December 31, 2018 Financial Financial Total Financial Financial Total Associates 7 (6 ) 1 7 (13 ) (6 ) Controlling shareholders and entities under control of the Group’s Controlling shareholders 100 (963 ) (863 ) 50 (500 ) (450 ) Total 107 (969 ) (862 ) 57 (513 ) (456 ) (a) Controlling shareholders and entities under control of the Group’s Controlling shareholders As of December 31, 2019 and 2018, the amounts of non-current financial assets fully covered by the allowance for expected credit losses included amounts receivable of RUB 24,391 million and RUB 24,391 million, respectively, described below. In December 2013, the Group, related party (an entity wholly owned by the Controlling Shareholder) and the former Estar metallurgical plants (hereinafter referred to as “metallurgical plants”) signed an assignment agreement. Under that agreement, the Group assigned to its related party the right to collect amounts due from the metallurgical plants, and the related party is to repay this amount to the Group through November 2017. In November 2017, the Group extended the terms of repayment through 2022. The amount of receivables and allowance for expected credit losses have been reclassified to Non-current financial assets (Note 12). The outstanding cash balance in Coalmetbank, an entity under control of the Group’s controlling shareholders, was RUB 1,509 million and RUB 703 million as of December 31, 2019 and December 31, 2018, respectively. In 2019, the Group purchased energy and electricity from its related party in the amount of RUB 692 million. (b) Compensation to key management personnel The total compensation to key management personnel was included in general and administrative expenses in the consolidated statement of profit (loss) and other comprehensive income and consisted of the short-term employee benefits in the amount of RUB 592 million, RUB 561 million and RUB 613 million in the year ended December 31, 2019, 2018 and 2017, respectively. There are no share-based payments to key management personnel. The Group’s directors and executive officers are also provided with voluntary medical insurance and the use of wireless services. |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Fair value measurement | 9. Fair value measurement Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial liabilities that are carried in the consolidated financial statements: December 31, 2019 December 31, 2018 Level Carrying Fair Carrying Fair Financial liabilities measured at amortised cost Floating rate loans and borrowings 2 370,312 357,276 384,608 356,444 Bonds 1 6,483 6,534 11,195 10,876 Fixed rate loans and borrowings 2 11,727 11,169 23,029 21,852 Other non-current 2 48, 3 46, 2 44,510 40,528 Total 436, 8 421, 1 463,342 429,700 The fair value of loans and borrowings was calculated based on the present value of future principal and interest cash flows, discounted at the Group’s interest rates adjusted for risk premium at the reporting dates (Level 2 Management assessed that the fair values of cash and cash equivalents, trade and other receivables (other than arising from provisionally priced contracts), trade and other payables and bank overdrafts approximate their carrying amounts largely due to the short-term maturities of these instruments. As of December 31, 2019 and 2018, trade receivables of RUB 459 million and RUB 1,938 million arising from provisionally priced contracts were measured at fair value through profit or loss upon recognition (Level 2). The adjustments to the final price on provisionally priced contracts measured at fair value resulted in a net loss of RUB 815 million, net gain of RUB 29 million and net loss of RUB 1,520 million and are recorded within revenue for the year ended December 31, 2019, 2018 and 2017, respectively. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. |
Financial assets and financial
Financial assets and financial liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Financial assets and financial liabilities | 10. Financial assets and financial liabilities 10.1 Financial liabilities: loans and borrowings 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, 2019 December 31, 2018 Interest Amount of Interest Amount of In Russian rubles Banks and financial institutions 7.8 1,347 9.3-9.6 3,634 Corporate lenders — — 6.7 10 Weighted average interest rate for the period 7.8 9.4 In euro Banks and financial institutions 1.7-1.9 524 1.3-2.8 580 Corporate lenders — — 3.0 22 Weighted average interest rate for the period 1.9 1.5 Current portion of long-term debt — 368,335 — 398,171 Interest payable — 9,014 — 7,749 Fines and penalties on overdue amounts — 2,097 — 2,128 Total short-term borrowings and current portion of long-term 381,317 412,294 Long-term debt December 31, 2019 December 31, 2018 Interest Amount of Interest Amount of In Russian rubles Banks and financial institutions 1.0-9.8 239,659 5.0-10.0 242,499 Bonds issue 8.0-11.9 6,370 8.0-12.3 10,979 Corporate lenders 9.3 43 6.7 73 Weighted average interest rate for the period 7.9 9.3 In U.S. dollars Banks and financial institutions 3.2-9.0 44,725 3.9-9.9 54,719 Corporate lenders — — 3.0 138 Weighted average interest rate for the period 8.4 8.6 In euro Banks and financial institutions 0.8-7.0 84,743 0.8-7.0 96,301 Weighted average interest rate for the period 4.8 4.8 Current part of long-term loans and borrowings (368,335 ) (398,171 ) Total long-term debt 7,205 6,538 Aggregate scheduled maturities of the debt outstanding as of December 31, 2019 were as follows: Payable by On demand 373,705 2020 (current portion) 7,612 2021 4,829 2022 2,292 2023 14 2024 49 Thereafter 21 Total 388,522 The unused portion under all credit facilities as of December 31, 2019 and 2018 was RUB 514 million and RUB 573 million, respectively. The outstanding balances of principal amount of short-term and long-term debt by denominated currencies and major banks as of December 31, 2019 and 2018 were as follows: Short-term and long-term debt December 31, December 31, Russian ruble-denominated Gazprombank 139,971 142,635 VTB 99,411 73,416 Sberbank — 25,723 Bonds 6,370 10,979 Eximbank of Russia — 3,305 Other 1,667 1,137 Total 247,419 257,195 U.S. dollar-denominated VTB 27,256 7,573 BNP 9,587 10,759 VEB 7,000 8,794 Sberbank — 23,147 MCB 676 4,037 Pre-export facility — 7 Other 206 540 Total 44,725 54,857 Euro-denominated VTB 66,145 74,794 BNP 13,793 15,752 ING Bank 2,221 2,541 NatWest Markets 1,352 1,549 Commerzbank — 1,317 Deutsche Bank AG. 1,150 — Other 606 950 Total 85,267 96,903 Total short-term and long-term debt 377,411 408,955 (a) Pre-export facility agreement In 2018, the Group refinanced an existing pre-export credit facility by receiving a new euro-denominated loan from VTB in the amount of RUB 66,368 million (EUR 897 million at the dates of transactions). The loan matures in April 2022. The outstanding balances of the pre-export credit facility as of December 31, 2019 and 2018 were nil and RUB 7 million ($100 thousand at exchange rate as of December 31, 2018), respectively. The finance income in the amount of RUB 12,854 million was recorded in the consolidated statements of profit (loss) and other comprehensive income for the year ended December 31, 2018 as a result of refinancing of pre-export credit facility. (b) VTB facilities In November 2019, all the ruble-denominated credit facilities of CMP, SKCC and BFP were transferred from Sberbank to VTB according to the assignment agreement between Sberbank and VTB, the terms and conditions remained the same in the assigned agreement. The outstanding balances of the ruble-denominated facilities as of December 31, 2019 and 2018 were RUB 99,411 million and RUB 73,416 million, respectively, bearing interest at 7.8-8.8% p.a. In December 2016, the Group signed amendments to the restructuring agreements and, in April 2017, VTB confirmed the restructuring terms under the credit facilities of Mechel PAO, CMP, SKCC and Yakutugol including an extension of the repayment grace period until 2020 and the final maturity until 2022 and annual interest rate at the level of the key rate of the Central Bank of the Russian Federation plus 1.5% for the ruble-denominated credit facilities. In accordance with the restructuring terms, the repayment of a RUB 30,000 million credit facility issued to Mechel PAO is made in equal installments within 36 months starting February 22, 2017 from the proceeds received from VTB under the credit facility issued to CMP 2 In October 2018, the Group fulfilled the terms of restructuring agreement signed in 2015. Consequently, finance income in the amount of RUB 12,101 million, including fines and penalties in the amount of RUB 9,878 million, was recognised in the consolidated statements of profit (loss) and other comprehensive income for the year ended December 31, 2018. In 2018, the Group received an euro-denominated loan from VTB bearing interest at 1M EURIBOR plus 5.5% p.a. in the amount of EUR 897 million (RUB 66,368 million at the date of transactions) in order to refinance the existing pre-export credit facilities in the amount of EUR 864 million (RUB 63,844 million at the date of transactions) and for other purposes in the amount of EUR 33 million (RUB 2,524 million at the date of transactions). The outstanding balances of the euro-denominated credit facilities as of December 31, 2019 and 2018 were RUB 66,145 million and RUB 74,794 million, respectively, bearing interest at 5.3-7.0% p.a. In November 2019, all the U.S. dollar-denominated credit facilities of SKCC were transferred from Sberbank to VTB according to the assignment agreement between Sberbank and VTB. The outstanding balance of the U.S. dollar-denominated credit facilities as of December 31, 2019 and 2018 was RUB 27,256 million and RUB 7,573 million, respectively, bearing interest at 9.0% p.a. (c) Gazprombank facilities The outstanding balances of the ruble-denominated facilities as December 31, 2019 and 2018 were RUB 139,971 million and RUB 142,635 million, respectively, bearing interest at 7.8% p.a. 2 Cash flows arising from settlement of VTB credit facilities were disclosed on a gross basis (as cash inflows and cash outflows within financing activities in the amount of RUB 5,000 million for the years ended December 31, 2019, 2018 and 2017). All payments under the credit facility issued to Mechel PAO are made upon receipt of the respective proceeds from VTB under the credit facility issued to CMP. In 2015, the Group signed restructuring agreements (became effective in 2016) and in April 2017, Gazprombank confirmed the restructuring terms of the credit facilities of SKCC, Yakutugol, CMP, Mechel Service, Mechel-Energo, BMP, Port Posiet, Mechel Coke and USP including an extension of the repayment grace period until 2020 and of the final maturity until 2022 and annual interest rate at the level of the key rate of the Central Bank of the Russian Federation plus 1.5% for the ruble-denominated credit facilities. In March 2018, the Group fully repaid the overdue interest accrued prior to the credit facilities restructuring in 2016. Consequently, fines and penalties in the amount of RUB 7,323 million were recorded as finance income in the consolidated statements of profit (loss) and other comprehensive income for the year ended December 31, 2018. (d) Sberbank facilities In November 2019, all the ruble-denominated credit facilities of CMP, SKCC and BFP, excluding interest payable for the amount of RUB 182 million, were transferred from Sberbank to VTB according to the assignment agreement between Sberbank and VTB, the terms and conditions remained the same in the assigned agreement. The outstanding balances of the ruble-denominated facilities as of December 31, 2019 and 2018 were nil and RUB 25,723 million, respectively. In 2016, the Group signed restructuring agreements and amicable settlements agreement approved by the courts with Sberbank and, in April 2017, Sberbank confirmed the restructuring terms under the relevant credit facilities including an extension of the repayment grace period until 2020 and the final maturity until 2022 and annual interest rate at the level of the key rate of the Central Bank of the Russian Federation plus 1.5% for the ruble-denominated credit facilities and 3M LIBOR plus 7% for the U.S. dollar-denominated credit facilities. In November 2019, all the U.S. dollar-denominated credit facilities of SKCC, excluding interest payable for the amount of RUB 370 million ($5,984 thousand at exchange rate as of December 31, 2019), were transferred from Sberbank to VTB according to the assignment agreement between Sberbank and VTB, the terms and conditions remained the same in the assigned agreement. The outstanding balances of the U.S. dollar-denominated facilities as of December 31, 2019 and 2018 were nil and RUB 23,147 million ($333,198 thousand at exchange rate as of December 31, 2018), respectively. As of December 31, 2019 and 2018, there were no overdue principal amount and overdue interest on the Sberbank credit facilities. (e) VEB facility In September 2017, the Group signed a new credit agreement, providing the Group with refinancing of existing credit facilities and the final maturity until April 2022. According to the agreement, VEB provided a credit facility in the amount of up to $190 million to refinance existing credit facilities. The Elgaugol’s outstanding balances under VEB credit facility as of December 31, 2019 and 2018 were RUB 7,000 million ($113,069 thousand at exchange rate as of December 31, 2019) and RUB 8,794 million ($126,583 thousand at exchange rate as of December 31, 2018), respectively, bearing interest at 5.5% p.a. As of December 31, 2019 and 2018, there were no overdue principal amount and overdue interest on the VEB credit facilities. The use of proceeds under the facility is limited to the development of the Elga coal project. (f) Bonds During 2009-2011, Mechel PAO placed a number of issues of the 5,000,000 ruble-denominated bonds each in an aggregate principal amount of RUB 40,000 million with maturity dates between February 2020 — July 2021. The range of coupon interest rate as of December 31, 2019 varies from 8.0% p.a. to 11.9% p.a. (g) Other loans Other loans represent the Russian ruble, U.S. dollar and euro-denominated long-term and short-term loans bearing interest at 0.8%-10.9% p.a. The outstanding balance under other loan agreements amounted to RUB 31,258 million and RUB 41,887 million as of December 31, 2019 and 2018, respectively. As of December 31, 2019, the Group’s overdue principal amount and overdue interest on other loans amounted to RUB 25,354 million and RUB 1,563 million, respectively, as of December 31, 2018 — RUB 25,209 million and RUB 1,726 million, respectively. The fines and penalties on overdue amounts of RUB 2,097 million and RUB 1,622 million were recorded in loans and borrowings in the consolidated statement of financial position as of December 31, 2019 and 2018, respectively. The fines and penalties in the amount of RUB 733 million, RUB 858 million and RUB 1,038 million were recorded as finance costs in the consolidated statements of profit (loss) and other comprehensive income for the year ended December 31, 2019, 2018 and 2017, respectively. In 2010-2017, the Group signed revolving credit agreements for working capital financing up to RUB 4,512 million with several banks. These revolving credit lines allow the Group to withdraw, repay and re-draw in the agreed amounts, timing and number of times until the arrangement expires. Borrowings bear interest at 5.3-7.0% p.a. (h) Pledges In order to secure bank financings, the Group pledged shares in certain key subsidiaries, including 100% of Yakutugol, 95% + 3 shares of SKCC, 91.66% of shares of CMP, 50% + 2 shares of common shares of BMP, 80% + 2 shares of KMP, 87.5%+3 shares of Mechel Mining, 75% + 2 shares of USP, 25% + 1 share of Izhstal, 25% + 1 share of Port Posiet, 50.99% of registered capital of Elgaugol, 25% of registered capital of Mecheltrans, 100% of registered capital of Fincom-invest OOO, 25% of registered capital of BFP, 25% of registered capital of Port Temryuk, 1.99% of registered capital of Mecheltrans Vostok OOO, 1.99% of registered capital of Elga-road as of December 31, 2019. As of December 31, 2019 and 2018, the carrying value of property, plant and equipment pledged under the loan agreements amounted to RUB 116,717 million and RUB 117,370 million, respectively (Note 15). Carrying value of inventories pledged under the loan agreements amounted to RUB 2,931 million and RUB 3,472 million as of December 31, 2019 and 2018, respectively. Accounts receivable pledged as of December 31, 2019 and 2018 amounted to RUB 179 million and RUB 1,044 million, respectively. Additionally, CMP pledged its rights to receive future payments (revenue) related to the contract with Russian Railways JSC in the amount of RUB 6,191 million ($100 million). 3 3 CMP’s accounts receivable from Russian Railways JSC as of December 31, 2019 amounted to RUB 695 million. (i) Covenants The Group’s loan agreements contain a number of covenants and restrictions, which include, but are not limited to, financial ratios, minimum value of shareholders’ equity and certain cross-default provisions. The covenants also include, among other restrictions, limitations on: (1) raising of additional borrowings; (2) amount of dividends in common and preferred shares; and (3) amounts that can be spent for capital expenditures, new investments and acquisitions. Covenant breaches if not waived generally permit lenders to demand accelerated repayment of principal and interest. The Group was required to comply with the following ratios under the most significant loan agreements with the Russian state-controlled banks as of December 31, 2019 4 Restrictive covenants Requirement Actual as of Group’s EBITDA to Net Interest Expense Shall not be less than 2.0:1.0 1.36:1.0 Group’s EBITDA to Consolidated Financial Expense Shall not be less than 2.0:1.0 1.40:1.0 Group’s Net Debt to EBITDA Shall not exceed 6.0:1.0 8.85:1.0 Group’s Total Debt to EBITDA Shall not exceed 3.5:1.0 8.51:1.0 Group’s Cash flow from operating activities to EBITDA Shall not be less than 0.8:1.0 1.08:1.0 Group’s EBITDA to Revenue Shall not be less than 0.2:1.0 0.18:1.0 As of December 31, 2019, the Group was not in compliance with all major covenants set by the loan agreements with the Russian state-controlled banks, except for the Cash flow from operating activities to EBITDA. Also, the Group was not in compliance with covenants contained in the loan agreements with foreign banks (such as Net Borrowings to EBITDA ratio, EBITDA to Net Interest Expense ratio and targeted amount of Adjusted Shareholder’s Equity). There was a default on payments of principal and interest in the amount of RUB 25,354 million and RUB 1,563 million, respectively, which is represented primarily by ECA-covered loans (represented by the credit facilities of BNP, ING, NatWest, Deutsche Bank AG and other international banks). As a result, the long-term debt of RUB 220,046 million was reclassified to short-term liabilities as of December 31, 2019. 10.2 Financial instruments risk management objectives and policies The Group is exposed to foreign currency risk, credit risk and liquidity risk. Management reviews and agrees policies for managing each of these risks, which are summarised below. Liquidity risk Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Group has procedures with the objective of minimizing such losses such as maintaining sufficient cash and other highly liquid current assets to meet its liabilities as and when they fall due. 4 Net Debt and Total Debt are calculated according to the respective definitions set by the credit agreements. Generally, Total Debt includes outstanding loans, lease, bonds and other finance liability balances; Net Debt is equal to Total Debt less cash and cash equivalents. As of December 31, 2019, the Group was in breach of a number of financial and non-financial covenants contained in the Group’s loan agreements which led to cross-defaults under other loan and lease agreements, permitting the respective lenders under such other facilities to accelerate the payment of principal and interest under their loans. 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 More than More than More than More than Total At December 31, 2019 Loans and borrowings, including interest payable 373,799 7,998 5,024 2,325 14 70 389,230 Lease liabilities 8,802 3,992 3,122 1,230 643 12,515 30,304 Trade and other payables 20,210 14,642 — — — — 34,852 Other financial liabilities — — 54,450 38 38 19 54,545 Maturity On demand Within More than More than More than More than Total At December 31, 2018 Loans and borrowings, including interest payable 406,337 7,185 4,520 2,550 16 119 420,727 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 Credit risk Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. The Group is exposed to credit risk from its operating activities (primarily trade receivables (Note 12)) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. Customer credit risk is managed by each subsidiary subject to the Group’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. The contractual credit period for sales of goods is about 30 days on average. No interest is charged on trade receivables. An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on actual incurred historical data. Based on the results of impairment analysis the allowance for expected credit losses on receivables is recognised (Note 12). The maximum exposure to credit risk arising from the Group’s financial assets is presented as follows: December 31, December 31, Restricted cash (excluding cash on hand) 147 51 Cash deposits 1,074 494 Trade and other receivables 15,442 17,718 Other financial assets 382 533 — Promissory notes — 212 — Loans issued 368 305 — Bonds 14 16 Total 17,045 18,796 The Group evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets. Foreign currency risk Foreign currency risk is the risk that the value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchanges rates. This risk arises when commercial transactions and recognised assets and liabilities are denominated in a currency different from the Group’s functional currencies. The Group undertakes transactions denominated in foreign currencies and consequently is exposed to foreign currency risk. Approximately 26% of the Group’s sales are denominated in U.S. dollars and 11% of the Group’s sales are denominated in euro, 13% of the Group’s borrowings are denominated in U.S. dollars and 22% of the Group’s borrowings are denominated in euro. The Group does not have formal arrangements to mitigate foreign currency risk. However, management of the Group believes that the foreign currency risk from sales of the Group denominated in U.S. dollars and euro is partly mitigated by foreign exchange (loss) gain from the Group’s borrowings and purchases denominated in foreign currencies, mostly in euro and U.S. dollars. 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, December 31, Current assets 639 157 Trade and other receivables 172 27 Cash and cash equivalents 467 130 Non-current liabilities (4,667 ) — Loans and borrowings (4,667 ) — Current liabilities (41,047 ) (54,954 ) Loans and borrowings (38,861 ) (51,732 ) Trade and other payables (2,186 ) (3,222 ) Assets and liabilities denominated in euro December 31, December 31, Current assets 171 812 Trade and other receivables 63 510 Cash and cash equivalents 108 302 Non-current liabilities (148 ) (219 ) Lease liabilities (148 ) (219 ) Current liabilities (88,794 ) (101,294 ) Loans and borrowings (86,213 ) (98,285 ) Trade and other payables (2,499 ) (2,953 ) Lease liabilities (82 ) (56 ) Sensitivity analysis 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 Effect before tax Change in Effect before tax 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 2019 +13 % (5,860 ) +13 % (11,540 ) -11 % 4,958 -11 % 9,765 Interest rate risk Interest rate risk is the risk that changes in floating interest rates adversely impacts the financial results of the Group. As of December 31, 2019 and 2018, the share of the borrowings with floating rates in the total amount of the borrowings were 97% (incl. key rate of the Central Bank of the Russian Federation – 65%, LIBOR, EURIBOR and other – 32%) and 95% (incl. key rate of the Central Bank of the Russian Federation – 62%, LIBOR, EURIBOR and other – 33%), respectively. The table below demonstrates the Group’s sensitivity to the change of floating rates: Increase/decrease in Effect before tax Increase/ Effect before tax Increase/ Effect before tax 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 2019 +1.25 % (3,116 ) +0.35 % (145 ) +0.15 % (126 ) -1.25 % 3,116 -0.35 % 145 -0.15 % 126 10.3 Other current financial assets In November 2011, the owners of the metallurgical plants (refer to Note 8(a)) and the Group entered into a loan agreement pursuant to which a loan of $944,530 thousand (RUB 28,433 million at exchange rate as of November 10, 2011) was granted by the Group. The loan consists of several tranches which bear interest at the range of 1-8.5% p.a. To secure the loan, shares in the major metallurgical plants (or shares in parent companies of such metallurgical plants) were pledged. The proceeds from this loan were used by the metallurgical plants to repay most of the accounts receivable owed to the Group. According to the loan agreement, in the event that the loan is not repaid at maturity (September 30, 2012), the Group was entitled to enforce the pledge over the pledged metallurgical plants assets and thereby take control of these assets subject to approval from the Russian Federal Antimonopoly Service. The Group has not taken possession of assets provided as collateral because these entities are under the bankruptcy procedure and burdened with substantial amount of debt. The Group evaluates the recoverability of the loan based on the fair value of the pledged assets. As of December 31, 2019, 2018 and 2017, this loan in the amount of RUB 7,992 million, RUB 10,240 million and RUB 9,800 million, respectively, was fully provided for as the fair value of the pledged assets was nil as at these dates. In 2019, this loan was partially written off in the amount of $34,929 thousand (RUB 2,250 million at the dates of transactions) due to liquidation of certain debtors. 10.4 Other non-current financial liabilities The Group recognised other non-current financial liabilities under the put option of Gazprombank in the amount of RUB 48,201 million as of December 31, 2019 and RUB 44,056 million as of December 31, 2018 (estimated at the present value of the consideration to be transferred upon the exercise of the put option discounted at the key rate of the Central Bank of the Russian Federation plus 2%). The respective finance cost was recognised in the consolidated statement of profit (loss) and other comprehensive income in the amount of RUB 4,145 million, RUB 3,796 million and RUB 4,062 million for 2019, 2018 and 2017, respectively (Note 24.4). On August 23, 2019, the Group received the offer from Gazprombank to acquire a 34% stake in the Elga coal complex. The offer expired on January 20, 2020 and the Group did not exercise its preemptive right under the offer. Gazprombank still has put option to sell the stake (in full or in part) in the Elga coal complex to the Group within three years following a five-year grace period or in case of a breach of conditions stipulated by the put option agreement signed in 2016. 10.5 Other current financial liabilities As part of the restructuring requirement, in January 2017, the Group signed a call option agreement with VTB providing VTB with an option to acquire preferred shares of Mechel PAO. At the date of the call option agreement, the Group recognised the financial liability at fair value in the amount of RUB 815 million. The corresponding amount was capitalized as restructuring fees within loans and borrowings considering this call option agreement as part of the restructuring requirement. On August 10, 2018, VTB notified the Group of its decision to exercise the option and receive cash of RUB 442 million. On August 22, 2018, RUB 442 million has been paid by the Group in full. 10.6 Leases The Group has lease contracts for various items of land, operating machinery and equipment and transportation vehicles. None of them meets the definition of investment property. The Group presents right-of-use assets within property, plant and equipment in the consolidated statement of financial position. Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period: Land Buildings Operating Transportation Total At January 1, 2019 — — 643 9,469 10,112 Adjustment on initial application of IFRS 16 1,932 681 73 12 2,698 Additions 200 541 405 7,401 8,547 Depreciation charge (72 ) (138 ) (204 ) (2,587 ) (3,001 ) Disposals (9 ) — (6 ) (2 ) (17 ) Impairment (72 ) — (19 ) (363 ) (454 ) Transfer to own property, plant and equipment — — (114 ) (1 ) (115 ) Exchange differences (1 ) (23 ) (15 ) (3 ) (42 ) At December, 31 2019 1,978 1,061 763 13,926 17,728 The Group presents lease liabilities separately from other liabilities in the consolidated statement of financial position. The following amounts related to the lease were recognised for the reporting period: 2019 The maturity analysis of lease liabilities Note 10.2 The cash flow effect of sale and leaseback transactions (net increase, consolidated statement of cash flows) 248 Interest expense on lease liabilities (Note 24.4) 1,409 Expense relating to short-term leases 1,536 Commitments for short-term leases as of December 31 62 The total cash outflow for leases 5,404 The Group’s lease contracts contain a number of restrictions, which included but not limited to, overdue principal and cross-default provisions. As of December 31, 2019 and 2018, the Group was not in compliance with the payment schedules under certain lease contracts and the Group’s loan agreements. As a result, the related long-term lease liabilities of RUB 5,480 million and RUB 1,320 million were reclassified to short-term lease liabilities due to covenant violations as of December 31, 2019 and 2018, respectively. In June 2019, the Group has extended a contract for lease of railway carriages until July 2021 resulting in addition to right-of-use assets and lease liabilities recognised in the amount of RUB 4,862 million. Until May 2019, the contract for lease of these railway carriages was short-term and contract expense was recognised within expense relating to short-term leases. The Group has lease contracts that have not yet commenced as of December 31, 2019 with the future lease payments of RUB 45 million within one year, RUB 110 million within five years and RUB 1 million thereafter. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
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Inventories | 11. Inventories December 31, December 31, Raw materials 13,643 14,980 Work in progress 8,565 8,681 Finished goods and goods for resale 17,565 19,762 Total inventories at the lower of cost and net realisable value 39,773 43,423 During 2019, RUB 1,763 million (2018: RUB 1,162 million, 2017: RUB 470 million) was recognised as an expense within cost of sales for inventories carried at net realisable value. The amount of inventories recognised as an expense during the period was RUB 93,837 million for 2019 (2018: RUB 115,126 million, 2017: RUB 102,613 million). |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2019 | |
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Trade and other receivables | 12. Trade and other receivables December 31, December 31, Trade receivables, including from contracts with 21,262 24,039 — domestic customers 18,251 19,037 — foreign customers 3,011 5,002 Less allowance for expected credit losses on trade receivables (6,200 ) (6,749 ) Total trade receivables, net 15,062 17,290 Other receivables 2,933 3,410 Less allowance for expected credit losses on other receivables (2,655 ) (3,088 ) Total other receivables, net 278 322 Total accounts receivable, net 15,340 17,612 Set out below is the information about the credit risk exposure on the Group’s trade receivables by ageing as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Trade Expected credit Trade Expected credit Current 11,907 (169 ) 14,734 (659 ) =<30 days 2,154 (59 ) 2,178 (106 ) 31-60 days 504 (99 ) 497 (62 ) 61-90 355 (126 ) 199 (57 ) 91-180 444 (134 ) 334 (142 ) 181-365 659 (565 ) 579 (377 ) >1 year 5,239 (5,048 ) 5,518 (5,346 ) Total trade receivables 21,262 (6,200 ) 24,039 (6,749 ) The Group does not hold any collateral over these balances. The movements in the allowance for expected credit losses on trade and other receivables were as follows: Total At December 31, 2016 (33,941 ) Charge for the year (343 ) Utilised amounts 603 Reclassified to non-current 24,391 Exchange rate difference 207 At December 31, 2017 (9,083 ) Charge for the year (791 ) Utilised amounts 575 Exchange rate difference (538 ) At December 31, 2018 (9,837 ) Charge for the year (226 ) Utilised amounts 800 Exchange rate difference 408 At December 31, 2019 (8,855 ) |
Other current and non-current a
Other current and non-current assets | 12 Months Ended |
Dec. 31, 2019 | |
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Other current and non-current assets | 13. Other current and non-current December 31, December 31, Other current assets Prepayments and advances 2,930 4,778 Input VAT and other taxes recoverable 3,970 3,758 Other current assets 82 137 Total prepayments and other current assets 6,982 8,673 December 31, December 31, Other non-current Deferred assets from sale and lease back 208 241 Other non-current 345 389 Total other non-current 553 630 Generally in Russia, VAT related to sales is payable to the tax authorities on an accrual basis based upon invoices issued to the customer. VAT incurred on purchases may be reclaimed, subject to certain restrictions, against VAT related to sales. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
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Cash and cash equivalents | 14. Cash and cash equivalents December 31, December 31, Cash on hand 6 8 Cash at banks, including — in Russian rubles 1,715 360 — in U.S. dollars 1,081 766 — in euro 640 596 — in other currencies 160 164 Total cash and cash equivalents 3,602 1,894 Less allowance for expected credit losses (93 ) (91 ) Total cash and cash equivalents, net 3,509 1,803 For the purpose of the consolidated statement of cash flows, bank overdrafts are deducted from cash and cash equivalents in the amount of RUB 642 million and RUB 1,423 million as of December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, the Group had short-term deposits included in cash at banks of RUB 1,074 million and RUB 494 million, respectively. Reconciliation between the changes in liabilities arising from financing activities including both changes arising from cash flows and non-cash changes: Loans and Lease Deferred Effect of Put option of Other Deferred At December 31, 2016 445,809 10,596 1,052 — 36,198 — 8,032 Cash flows (42,480 ) (4,801 ) (455 ) — — — (3,652 ) Foreign exchange movement (3,942 ) (67 ) — — — — (370 ) Changes in fair value — — — — — (81 ) — Other changes, including interest 40,506 3,626 1,083 — 4,062 815 — At December 31, 2017 439,893 9,354 1,680 — 40,260 734 4,010 Cash flows (52,951 ) (3,892 ) (629 ) — — (442 ) (3,968 ) Foreign exchange movement 24,167 83 — — — — 339 Changes in fair value — — — — — (292 ) — Other changes, including interest 7,723 2,748 379 — 3,796 — — At December 31, 2018 418,832 8,293 1,430 — 44,056 — 381 Cash flows (42,831 ) (3,488 ) (341 ) 234 — — (361 ) Foreign exchange movement (17,636 ) (38 ) — — — — (20 ) Other changes, including interest 30,157 12,588 62 14 4,145 — — At December 31, 2019 388,522 17,355 1,151 248 48,201 — — The table above does not include dividends paid of RUB 1,531 million, RUB 1,394 million and RUB 978 million, acquisition of non-controlling interests in subsidiaries of RUB nil million, RUB nil million and RUB 3,358 million and fines and penalties on overdue leases of RUB 39 million, RUB 10 million and RUB 13 million for the years ended December 31, 2019, 2018 and 2017, respectively. The amounts presented in other changes are primarily attributable to interest accrued of RUB 33,159 million, RUB 36,660 million and RUB 41,528 million for the years ended December 31, 2019, 2018 and 2017, respectively (Note 24.4), new lease agreements of RUB 11,234 million (including effect of adoption of IFRS 16 in the amount of RUB 3,259 million), RUB 1,675 million and RUB 2,295 million for the years ended December 31, 2019, 2018 and 2017, respectively, and effect of restructuring of loans of RUB 25 million, RUB 33,514 million and RUB 264 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
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Property, plant and equipment | 15. Property, plant and equipment Land Buildings and Operating Trans- Other Construction- Mining Railway Ulak-Elga Total Cost At December 31, 2016 3,049 77,659 114,328 29,291 822 21,134 15,100 74,791 336,174 Additions 6 363 1,531 3,124 45 5,767 1,576 — 12,412 Change in rehabilitation provision — 141 — — — — (58 ) — 83 Transfers — 2,934 3,360 190 148 (7,011 ) 362 17 — Disposals (12 ) (432 ) (1,713 ) (1,795 ) (28 ) (245 ) (3 ) — (4,228 ) Exchange differences 52 148 132 21 9 — — — 362 At December 31, 2017 3,095 80,813 117,638 30,831 996 19,645 16,977 74,808 344,803 Additions 9 10 2,423 2,048 83 6,851 50 — 11,474 Change in rehabilitation provision — (187 ) — — — — (102 ) — (289 ) Transfers 1 487 2,750 251 97 (4,099 ) 119 394 — Disposals (255 ) (649 ) (1,734 ) (1,410 ) (32 ) (509 ) (136 ) — (4,725 ) Exchange differences 91 277 251 40 28 — — — 687 At December 31, 2018 2,941 80,751 121,328 31,760 1,172 21,888 16,908 75,202 351,950 Adjustment on initial application of IFRS16 2,488 686 73 12 — — — — 3,259 Additions 200 568 1,585 7,683 33 7,332 38 — 17,439 Change in rehabilitation provision — 456 — — — — 707 — 1,163 Transfers (9 ) 2,606 3,176 262 21 (6,752 ) (26 ) 722 — Disposals (36 ) (241 ) (2,415 ) (2,159 ) (33 ) (990 ) — — (5,874 ) Exchange differences (86 ) (289 ) (240 ) (37 ) (30 ) (2 ) — — (684 ) At December 31, 2019 5,498 84,537 123,507 37,521 1,163 21,476 17,627 75,924 367,253 Depreciation and impairment At December 31, 2016 (251 ) (35,905 ) (72,899 ) (16,769 ) (733 ) (1,582 ) (3,101 ) (581 ) (131,821 ) Depreciation charge — (3,747 ) (7,315 ) (2,222 ) (72 ) — (245 ) (235 ) (13,836 ) Disposals — 302 1,611 1,720 22 127 1 7 3,790 Reversal of impairment/ (impairment) (37 ) (876 ) (2,174 ) (454 ) (5 ) (278 ) (1,067 ) — (4,891 ) Exchange differences (4 ) (49 ) (95 ) (13 ) (9 ) — — — (170 ) At December 31, 2017 (292 ) (40,275 ) (80,872 ) (17,738 ) (797 ) (1,733 ) (4,412 ) (809 ) (146,928 ) Depreciation charge — (3,550 ) (7,273 ) (2,253 ) (99 ) — (180 ) (279 ) (13,634 ) Disposals 223 287 1,593 1,317 50 47 170 — 3,687 Impairment (43 ) (319 ) (1,065 ) (709 ) (15 ) (536 ) (2,153 ) — (4,840 ) Exchange differences (3 ) (110 ) (191 ) (28 ) (24 ) — — — (356 ) At December 31, 2018 (115 ) (43,967 ) (87,808 ) (19,411 ) (885 ) (2,222 ) (6,575 ) (1,088 ) (162,071 ) Adjustment on initial application of IFRS16 (556 ) (5 ) — — — — — — (561 ) Depreciation charge (72 ) (2,919 ) (6,968 ) (3,469 ) (53 ) — (186 ) (295 ) (13,962 ) Disposals 25 194 2,237 2,108 21 30 4,615 Reversal of impairment/ (impairment) (36 ) 615 1,495 (415 ) 10 (310 ) (18 ) — 1,341 Exchange differences 4 117 194 39 23 — — — 377 At December 31, 2019 (750 ) (45,965 ) (90,850 ) (21,148 ) (884 ) (2,502 ) (6,779 ) (1,383 ) (170,261 ) Net book value At December 31, 2016 2,798 41,754 41,429 12,522 89 19,552 11,999 74,210 204,353 At December 31, 2017 2,803 40,538 36,766 13,093 199 17,912 12,565 73,999 197,875 At December 31, 2018 2,826 36,784 33,520 12,349 287 19,666 10,333 74,114 189,879 At December 31, 2019 4,748 38,572 32,657 16,373 279 18,974 10,848 74,541 196,992 According to the results of the impairment analysis of non-current assets, gain from reversal of impairment of RUB 1,341 million and impairment losses of RUB 4,840 million and RUB 4,891 million were recognised by the Group for the years ended December 31, 2019, 2018 and 2017, respectively (Note 17). Property, plant and equipment other than right-of-use assets Land Buildings and Operating Trans- Other Construction- Mining Railway Ulak-Elga Total Cost At December 31, 2018 2,941 80,751 119,583 17,203 1,172 21,888 16,908 75,202 335,648 Additions — 27 1,180 282 33 7,332 38 — 8,892 Change in rehabilitation provision — 456 — — — — 707 — 1,163 Transfers (9 ) 2,606 3,176 262 21 (6,752 ) (26 ) 722 — Transfer to own property, plant and equipment — — 752 95 — — — — 847 Disposals (24 ) (240 ) (2,400 ) (2,045 ) (33 ) (990 ) — — (5,732 ) Exchange differences (84 ) (263 ) (223 ) (29 ) (30 ) (2 ) — — (631 ) At December 31, 2019 2,824 83,337 122,068 15,768 1,163 21,476 17,627 75,924 340,187 Depreciation and impairment At December 31, 2018 (115 ) (43,967 ) (86,706 ) (14,323 ) (885 ) (2,222 ) (6,575 ) (1,088 ) (155,881 ) Depreciation charge — (2,781 ) (6,764 ) (882 ) (53 ) — (186 ) (295 ) (10,961 ) Transfer to own property, plant and equipment — — (638 ) (94 ) — — — — (732 ) Disposals 22 193 2,228 1,996 21 30 4,490 Reversal of impairment/ (impairment) 36 615 1,514 (52 ) 10 (310 ) (18 ) — 1,795 Exchange differences 3 114 192 34 23 — — — 366 At December 31, 2019 (54 ) (45,826 ) (90,174 ) (13,321 ) (884 ) (2,502 ) (6,779 ) (1,383 ) (160,923 ) Net book value At December 31, 2018 2,826 36,784 32,877 2,880 287 19,666 10,333 74,114 179,767 At December 31, 2019 2,770 37,511 31,894 2,447 279 18,974 10,848 74,541 179,264 Assets under construction As of December 31, 2019 and 2018, construction-in-progress included advances issued for acquisition of property, plant and equipment in the amounts of RUB 277 million and RUB 547 million, respectively. Property pledged to the banks as security Certain property, plant and equipment assets have been pledged to secure bank loans and borrowings granted to the Group: December 31, December 31, Net book value 116,717 117,370 Capitalised borrowing costs The amount of borrowing costs capitalised during the year ended December 31, 2019 was RUB 309 million (2018: RUB 492 million, 2017: RUB 621 million). The rate used to determine the amount of borrowing costs eligible for capitalisation was 8.57% (2018: 8.55%, 2017: 9.70 %), which is the average rate of the eligible borrowings. Contractual commitments As of December 31, 2019 and 2018, the total Group’s contractual commitments to acquire property, plant and equipment excluding VAT amounted to RUB 10,506 million and RUB 11,801 million, respectively. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
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Intangible assets | 16. Intangible assets Goodwill Mineral Other intangible Cost At December 31, 2016 32,902 55,783 — Additions — — 880 Disposal — (165 ) — Exchange differences (24 ) — — At December 31, 2017 32,878 55,618 880 Additions — — — Disposal — — — Exchange differences 90 — — At December 31, 2018 32,968 55,618 880 Additions Disposal Exchange differences (57 ) At December 31, 2019 32,911 55,618 880 Amortisation and impairment At December 31, 2016 (14,547 ) (19,684 ) — Impairment — (1,190 ) — Amortisation — (1,504 ) — At December 31, 2017 (14,547 ) (22,378 ) — Impairment (2,382 ) — — Amortisation — (1,172 ) (36 ) Disposal — — — Exchange differences — — — At December 31, 2018 (16,929 ) (23,550 ) (36 ) Impairment (3 , ) (6 ) — Amortisation — (987 ) (35 ) Disposal — — — Exchange differences — — — At December 31, 2019 (20,068 ) (24,543 ) (71 ) Net book value At December 31, 2016 18,355 36,099 — At December 31, 2017 18,331 33,240 880 At December 31, 2018 16,039 32,068 844 At December 31, 2019 12,843 31,075 809 In December 2017, the Group acquired the rights to connect to the power grid for providing the SKCC’s power receiving equipment with an additional power capacity. These rights are recorded as other intangible assets of mining segment with a useful life of 25 years. As of December 31, 2019 and 2018, the Group performed an impairment analysis of goodwill (Note 17). As of December 31, 2019 and 2018, the total Group’s contractual commitments to acquire intangible assets excluding VAT amounted to nil and RUB 110 million, respectively. |
Impairment of goodwill and othe
Impairment of goodwill and other non-current assets | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Impairment of goodwill and other non-current assets | 17. Impairment of goodwill and other non-current assets As of December 31, 2019 and 2018, the Group performed an impairment analysis of goodwill and other non-current assets at the level of cash generating units (CGU). The Group considers the relationship between market capitalization and its book value, among other factors, when reviewing for indicators of impairment. Goodwill acquired through business combinations has been allocated to CGUs for impairment testing as follows (before impairment write-downs): Goodwill Cash generating units Segment December 31, December 31, Yakutugol Mining 13,399 13,399 Kuzbass Power Sales Company Power 1,026 1,026 Port Posiet Mining 756 756 Chelyabinsk Metallurgical Plant Steel 589 646 Southern Kuzbass Coal Company Mining 143 143 Port Temryuk Mining 69 69 Southern Kuzbass Power Plant Power — 2,382 Total 15,982 18,421 As of December 31, 2019 and 2018, the recoverable amount of CGUs was determined based on value in use except for one CGU with the recoverable amount determined as fair value less cost to sell. Inflation and discount rates, range of discount rates, estimated for each year for the forecasted period, were as follows: Forecast period, years For the year ended December 31, 2018 2019 2020 2021 2022 2023 Inflation rate in Russia 5.0% 4.3% 3.8% 4.0% 4.0% Inflation rate in European countries 3.3% 3.3% 3.1% 3.1% 3.0% Pre-tax discount rate, % 11.10%-23.60% 11.10%-23.60% 11.10%-23.60% 11.10%-23.60% 11.10%-23.60% For the year ended December 31, 2019 2020 2021 2022 2023 2024 Inflation rate in Russia 3.7% 3.4% 3.8% 3.8% 3.8% Inflation rate in European countries 3.1% 2.7% 2.8% 2.8% 2.9% Pre-tax discount rate, % 10.0%-14.9% 10.0%-14.9% 10.0%-14.9% 10.0%-14.9% 10.0%-14.9% As of December 31, 2019, the Group performed the impairment testing for the following number of CGUs by segments: Steel – 3, Mining – 6 and Power – 2. Impairment of goodwill According to the results of the impairment analysis of goodwill, an impairment loss as of December 31, 2019 was recognised in the following CGU: Cash generating units Impairment loss Yakutugol 3,139 Total 3,139 Goodwill at Yakutugol was impaired in the amount of RUB 3,139 as of December 31, 2019 due to coal prices decline in long-term forecast along with forthcoming depletion of Neryungrinsky Open Pit. The remaining carrying value of goodwill was RUB 10,259 million. According to the results of the impairment analysis of goodwill, an impairment loss as of December 31, 2018 was recognised in the following CGU: Cash generating units Impairment loss Southern Kuzbass Power Plant (SKPP) 2,382 Total 2,382 Goodwill at SKPP was written down from RUB 2,382 million to nil as of December 31, 2018 due to the breakdown of generating equipment and increased raw materials cost, that led to the increased idle and maintenance costs and reduced generating capacity forecasts. According to the results of the impairment analysis of goodwill, no impairment loss as of December 31, 2017 was recognized. Impairment of non-current assets According to the results of the impairment analysis, impairment of non-current assets was identified for the following CGUs as of December 31, 2019: Cash generating units Impairment loss Bratsk Ferroalloy Plant (BFP) 727 Korshunov Mining Plant (KMP) 549 Total 1,276 Impairment of non-current assets at BFP of RUB 727 million was recognised due to ferrosilicon prices decline in long-term forecast. The remaining carrying value of the property, plant and equipment and mineral licenses of BFP was RUB 702 million. Estimated future cash flows remained negative at KMP therefore property, plant and equipment acquired in 2019 for the purpose to maintain production volumes in accordance with the license agreement obligations was written down to nil as of December 31, 2019. According to the results of the impairment analysis, reversal of previously recognised impairment loss of non-current assets was identified for the following CGUs as of December 31, 2019: Cash generating units Gain from reversal of Izhstal 2,611 Total 2,611 An impairment loss of non-current assets previously recognised at Izhstal was reversed of RUB 2,611 million due to decline in purchase prices for electrodes used as raw materials for steel production in a long-term forecast and decrease in pre-tax discount rate The remaining carrying value of the property, plant and equipment of Izhstal was RUB 4,199 million. According to the results of the impairment analysis, impairment of non-current assets was identified for the following CGUs as of December 31, 2018: Cash generating units Impairment loss Korshunov Mining Plant (KMP) 1,151 Izhstal 781 Southern Kuzbass Power Plant (SKPP) 337 Total 2,269 The carrying value of property, plant and equipment at KMP was written down to nil as of December 31, 2017. However, during 2018, new non-current assets were acquired for the purpose to maintain production volumes in accordance with the license agreement obligations. As of December 31, 2018, estimated future cash flows remain negative due to high transportation cost per tonne and significant costs of large-scale stripping works in order to fulfil required level of extraction. Therefore, an additional impairment of property, plant and equipment at KMP of RUB 1,151 million was recognised as of December 31, 2018. Impairment of property, plant and equipment at Izhstal of RUB 781 million was caused by the shift of production technology to casting own steel instead of acquiring billets, increased projected cost of purchased scrap metal and continued growth in long-term production costs. The remaining carrying value of the property, plant and equipment of Izhstal was RUB 1,799 million. Impairment of non-current assets at SKPP of RUB 337 million represents the remaining loss allocated after the reduction of carrying value of goodwill at SKPP as described above. The remaining carrying value of the property, plant and equipment of SKPP was RUB 1,889 million. Carrying value of individual items of the non-current assets for the respective entities including the underground mining workings at SKCC was impaired due to changes in the Group’s management plans to invest funds into the ongoing construction projects and, as a result, the inability of these assets to generate future economic benefits in the current market conditions: Subsidiaries Impairment loss 2018 Southern Kuzbass Coal Company (SKCC) 2,533 Other 38 Total 2,571 According to the results of the impairment analysis, impairment of non-current assets was identified for the following CGUs as of December 31, 2017: Cash generating units Impairment loss Korshunov Mining Plant (KMP) 2,271 Izhstal 2,130 Bratsk Ferroalloy Plant (BFP) 151 Total 4,552 The carrying value of property, plant and equipment and the mineral licenses at KMP of RUB 1,631 million and RUB 640 million, respectively, was written down to nil as of December 31, 2017 due to the decline in long-term forecast for iron ore prices, increase in transportation cost per tonne and growth of stripping costs required for removal of landslide deformations. Impairment of non-current assets at Izhstal of RUB 2,130 million was caused by significant increase in production costs for raw materials, specifically by increase in purchase price for electrodes expected to be maintained for a long-term period. The remaining carrying value of the property, plant and equipment of Izhstal was 2,871 RUB million. Impairment of property, plant and equipment at BFP of RUB 151 million was recognized due to the extension of planned period of furnace shutdown for compulsory repair works. The remaining carrying value of the property, plant and equipment and mineral licenses of BFP was RUB 1,258 million. The carrying value of individual items of the non-current assets for the respective entity was impaired due to the decline by the regulatory authorities to extend the term of mineral license for exploration and extraction: Subsidiaries Impairment loss 2017 Southern Kuzbass Coal Company (SKCC) 1,529 Total 1,529 Sensitivity analysis Reasonably possible change in key assumptions used in calculations of value in use could impact recoverable amount which was most sensitive to the growth of discount rate, cash flows growth rates after the forecasted period and change in operating profit due to changes in sales and extraction volumes and selling prices. Based on the sensitivity analysis carried out as of December 31, 2019, a 5% decrease in future planned revenues would trigger impairment of goodwill, property, plant and equipment, mineral licenses and other intangible assets of RUB 17,693 million at SKCC, additional impairment of goodwill of RUB 8,283 million at Yakutugol, additional impairment of property, plant and equipment and mineral licenses at BFP of 702 RUB million, and a 1% increase in discount rate would lead to additional impairment of goodwill of RUB 1,606 million at Yakutugol. Decrease in selling prices for steel products by 3.3% would lead to reduction of gain from reversal of previously recognised impairment loss at Izhstal, at a 5.5% decrease in selling prices for steel products gain from reversal of previously recognized impairment loss at Izhstal would decrease to nil. For the cash-generating units, which were not impaired in the reporting period and for which the reasonably possible changes could lead to impairment, the recoverable amounts would become equal to their carrying amounts if the assumptions used to measure the recoverable amounts changed by the following percentages: decrease in sales prices by 1.3% and 2.5% at SKCC and SKPP, respectively. The recoverable amounts of SKCC and SKPP based on initial key assumptions exceed the carrying amounts by RUB 6,436 million and RUB 1,390 million, respectively. Reasonably possible changes in other key assumptions used in assessing recoverable amount of CGUs as of December 31, 2019 do not lead to excess of carrying value over recoverable amount. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Trade and other payables | 18. Trade and other payables December 31, December 31, Trade payables 27,806 24,288 Other payables 10,585 10,512 Total trade and other payables 38,391 34,800 Other payables include accruals for fines and penalties, payables for property, plant and equipment acquired, salaries payable, dividends payable and other. December December 31, Other payables Wages and salaries payable and other related obligations 3,538 3,425 Accounts payable for property, plant and equipment 3,164 2,600 Dividends payable, common shares 136 146 Dividends payable, preferred shares 80 86 Other 3,667 4,255 Total 10,585 10,512 |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Income tax | 19. Income tax The major components of income tax expense for the years ended December 31, 2019, 2018 and 2017 are: Recognised in profit or loss 2019 2018 2017 Current income tax Current income tax charge (2,981 ) (2,315 ) (3,397 ) Adjustments in respect of income tax, including income tax penalties and changes in uncertain income tax position (2,718 ) (2,962 ) (3,154 ) Deferred tax Relating to origination and reversal of temporary differences (2,288 ) 2,596 3,401 Income tax expense reported in the consolidated statement of profit (loss) and other comprehensive income (7,987 ) (2,681 ) (3,150 ) In January 2013, the Group created the consolidated group of taxpayers in accordance with the Tax code of the Russian Federation, under the Federal law of the Russian Federation of November 16, 2011 No. 321-FZ. The existence of the consolidated group of taxpayers is subject to compliance with several conditions stated in the Tax code of the Russian Federation. The Group believes that these conditions were met as of December 31, 2019, 2018 and 2017. In 2016-2019, the consolidated group of taxpayers consisted of 20 subsidiaries of the Group, together with Mechel PAO, which is the responsible taxpayer under the agreement. Under the Federal law of the Russian Federation of August 3, 2018 No. 302-FZ, the Russian legislation introduced a limitation for registration by the tax authorities of agreements on the establishment of consolidated group of taxpayers, changes to contracts related to the accession of new members of such groups, withdrawal of participants, the extension of the agreement on the established consolidated group of taxpayers and termination of the consolidated group of taxpayers by January 1, 2023. For subsidiaries which are not included in the consolidated group of taxpayers, income taxes are calculated on an individual subsidiary basis. Deferred income tax assets and liabilities are recognised in the accompanying consolidated financial statements in the amount determined by the Group in accordance with IAS 12. During 2017-2019, income tax was calculated at 20% of taxable profit in Russia and Kazakhstan, and at 25% in Austria. Income tax in Germany was calculated at 32.81%, 32.10% and 32.10% for 2017, 2018 and 2019. Amendments in the tax legislation Switzerland resulted in the increase in tax rate from 10.5%-11% to 13% since January 1, 2020. Starting 2018, Elgaugol used a privilege and applied a 0% income tax rate due to fulfillment of conditions of the Regional investment project (RIP). The reconciliation between the income tax expense computed by applying the Russian enacted statutory tax rates to the income from continuing operations before tax and non-controlling interest, to the income tax expense reported in the consolidated financial statements is as follows: 2019 2018 2017 Profit before tax from continuing operations 12,272 16,217 15,720 Income tax expense at statutory income tax rate of 20% (2,454 ) (3,243 ) (3,144 ) Adjustments: Adjustments in respect of income tax, including income tax penalties and changes in uncertain income tax position. (2,718 ) (2,962 ) (3,154 ) Unrecognised current year tax losses and write-off of previously recognised asset on tax losses (1,277 ) 4,008 4,783 Non-deductible expenses for tax purposes (1,347 ) (3,625 ) (1,755 ) Non-deductible interest expense (229 ) (363 ) (254 ) Effect of restructuring and expense related to fines and penalties on breach of covenants in credit agreements — 3,460 112 Effect of different tax rates 155 (12 ) 262 Change in tax rate (117 ) 56 — At the effective income tax rate of 65.1% (16.5% in 2018, 20.0% in 2017) income tax expense reported in the consolidated statement of profit (loss) and other comprehensive income (7,987 ) (2,681 ) (3,150 ) The deferred tax balances were calculated by applying the currently enacted statutory income tax rate in each jurisdiction applicable to the period in which the temporary differences between the carrying amounts and tax base (both in respective local currencies) of assets and liabilities are expected to reverse. The amounts reported in the accompanying consolidated financial statements consisted of the following: January 1, Adjustment January 1, Tax (expense) recognised in Foreign currency December 31, Deferred tax assets Property, plant and equipment 386 (86 ) 300 386 — 686 Rehabilitation provision 773 — 773 295 — 1,068 Inventory 1,716 — 1,716 (36 ) (1 ) 1,679 Trade and other receivables 790 — 790 (269 ) (2 ) 519 Loans and borrowings 320 — 320 40 — 360 Lease liabilities 843 651 1,494 1,087 (4 ) 2,577 Trade and other payables and other liabilities 869 — 869 (340 ) — 529 Net operating loss carry-forwards 13,623 — 13,623 (3,210 ) (10 ) 10,403 Other 74 — 74 40 (3 ) 111 Deferred tax liabilities Property, plant and equipment (15,468 ) (537 ) (16,005 ) (1,830 ) 30 (17,805 ) Mineral licenses (6,376 ) — (6,376 ) 235 — (6,141 ) Inventory (834 ) — (834 ) (160 ) 5 (989 ) Trade and other receivables (499 ) — (499 ) (280 ) 5 (774 ) Loans and borrowings (3,898 ) — (3,898 ) 1,825 — (2,073 ) Trade and other payables and other liabilities (337 ) — (337 ) (71 ) 29 (379 ) Deferred tax assets (liabilities), net (8,018 ) 28 (7,990 ) (2,288 ) 49 (10,229 ) January 1, Adjustment January 1, Tax (expense) recognised in Foreign currency December 31, Deferred tax assets Property, plant and equipment 759 — 759 (373 ) — 386 Rehabilitation provision 802 — 802 (29 ) — 773 Inventory 179 — 179 1,537 — 1,716 Trade and other receivables 735 — 735 52 3 790 Loans and borrowings 313 822 1,135 (815 ) — 320 Lease liabilities 983 — 983 (141 ) 1 843 Trade and other payables and other liabilities 656 — 656 213 — 869 Net operating loss carry-forwards 7,972 — 7,972 5,646 5 13,623 Other 86 — 86 (15 ) 3 74 Deferred tax liabilities Property, plant and equipment (15,869 ) — (15,869 ) 429 (28 ) (15,468 ) Mineral licenses (6,652 ) (6,652 ) 276 — (6,376 ) Inventory (801 ) — (801 ) (28 ) (5 ) (834 ) Trade and other receivables (330 ) — (330 ) (160 ) (9 ) (499 ) Loans and borrowings (112 ) 50 (62 ) (3,835 ) (1 ) (3,898 ) Trade and other payables and other liabilities (119 ) — (119 ) (161 ) (57 ) (337 ) Deferred tax assets (liabilities), net (11,398 ) 872 (10,526 ) 2,596 (88 ) (8,018 ) January 1, Tax benefit recognised in Foreign currency December 31, Deferred tax assets Property, plant and equipment 677 81 1 759 Rehabilitation provision 694 108 — 802 Inventory 193 (9 ) (5 ) 179 Trade and other receivables 831 (92 ) (4 ) 735 Loans and borrowings 118 195 — 313 Lease liabilities 1,121 (138 ) — 983 Trade and other payables and other liabilities 700 (31 ) (13 ) 656 Net operating loss carry-forwards 4,715 3,248 9 7,972 Other 59 26 1 86 Deferred tax liabilities Property, plant and equipment (15,665 ) (193 ) (11 ) (15,869 ) Mineral licenses (7,216 ) 564 — (6,652 ) Inventory (684 ) (117 ) — (801 ) Trade and other receivables (124 ) (207 ) 1 (330 ) Loans and borrowings (103 ) (9 ) — (112 ) Trade and other payables and other liabilities (96 ) (25 ) 2 (119 ) Deferred tax assets (liabilities), net (14,780 ) 3,401 (19 ) (11,398 ) Recognised in the consolidated statement of financial position: December 31, December 31, Deferred tax assets 3,648 5,488 Deferred tax liabilities (13,877 ) (13,506 ) Deferred tax liabilities, net (10,229 ) (8,018 ) The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. For financial reporting purposes, the Group has not recognised deferred tax assets in the amount of RUB 29,600 million (2018: RUB 33,216 million) on losses in the amount of RUB 150,460 million (2018: RUB 177,639 million) that are available to carry forward against future taxable income of the subsidiaries in which the losses arose. Deferred tax assets have not been recognised in respect of these losses as it is not probable that future taxable profit will be available for utilization of such assets. Deferred tax assets on net operating loss carry forwards which are considered to be realisable in the future, are mostly related to the Russian subsidiaries. A deferred tax liability of approximately RUB 305 million and RUB 302 million as of December 31, 2019 and 2018, respectively, has not been recognised for temporary differences related to the Group’s investment in foreign subsidiaries primarily as a result of unremitted earnings of consolidated subsidiaries, as it is the Group’s intention, generally, to reinvest such earnings permanently. Similarly, a deferred tax liability of approximately RUB 105 million and nil as of December 31, 2019 and 2018, respectively, has not been recognised for temporary difference related to unremitted earnings of consolidated domestic subsidiaries as management believes the Group is able to control the timing of the reversal of these temporary differences and does not intend to reverse them in the foreseeable future. Probable income tax risks of RUB 8,984 million and RUB 6,314 million as of December 31, 2019 and 2018, respectively, have been recorded in the Group’s consolidated financial statements. Due to changes in the Russian tax legislation effective January 1, 2017, calculation of the consolidated tax base of the consolidated group of taxpayers and the way to offset current losses and losses received in the previous tax periods (before January 2017) were changed. Due to the absence of official explanations of the regulatory authorities concerning changes, there is an uncertainty in the interpretation. The Group does not believe that any other material income tax matters exist relating to the Group, including current pending or future governmental claims and demands, which would require adjustment to the accompanying consolidated financial statements in order for those statements not to be materially misstated or misleading as of December 31, 2019. Possible income tax risks of RUB 1,663 million and RUB 2,745 million as of December 31, 2019 and 2018, respectively, have not been recognised in the Group’s consolidated financial statements. |
Taxes and similar charges payab
Taxes and similar charges payable other than income tax | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Taxes and similar charges payable other than income tax | 20. Taxes and similar charges payable other than income tax December 31, December 31, Payroll taxes 3,353 2,424 VAT payable 4,120 2,233 Property tax 566 511 Land lease 454 471 Mineral extraction tax 332 226 Land tax 240 125 Other 163 116 Total 9,228 6,106 |
Pensions and other post-employm
Pensions and other post-employment benefit plans | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Pensions and other post-employment benefit plans | 21. Pensions and other post-employment benefit plans In addition to the state pension and social insurance required by the Russian legislation, the Group has a number of defined benefit pension plans that cover the majority of production employees and some other postretirement benefit plans. A number of the Group’s companies provide their former employees with non-state retirement pensions, which are conditional on the member qualifying for the state old age pension. Some employees are also eligible for an early retirement in accordance with the state pension regulations. Specific coal industry rules also provide for certain benefits upon reaching retirement age. Additionally, the Group voluntarily provides financial support, of a defined benefit nature, to its old age and disabled pensioners, who did not acquire any pension under the non-state pension plans. The Group provides several types of long-term employee benefits such as death-in-service benefit and invalidity pension of a defined benefit nature. The Group also provides former employees with reimbursement of fuel and energy resources, coal used for heating purposes. In addition, one-time lump sum benefits are paid to employees of a number of the Group’s companies upon retirement depending on the employment service with the Group and the salary level of an individual employee. All pension plans are unfunded until the qualifying event occurs. As of December 31, 2019, there were 47,288 active participants under the defined benefit pension plans and other long-term benefit plans and 37,814 pensioners receiving monthly pensions or other regular financial support from these plans. As of December 31, 2018 and December 31, 2017, the related figures were 48,531 and 48,920 of active participants under the defined benefit pension plans and other long-term benefits and 38,751 and 39,427 pensioners receiving monthly pensions or other regular financial support from these plans, respectively. The majority of employees at the Group’s major subsidiaries belong to the trade unions. Actuarial valuation of pensions and other long-term benefits for the major subsidiaries was performed in January 2020, with the measurement date of December 31, 2019. Members’ census data as of that date was collected for all relevant business units of the Group. Pension obligations and expenses determined by the Group are supported by an independent qualified actuary in accordance with the “Projected Unit Credit method” of calculation of actuarial present value of future liabilities. The state retirement age is one of the factors affecting the retirement of employees from the Group. In October 2018, the state gradually changed the previously established national retirement age; the Group took this circumstance into account in the actuarial valuation of the obligations. The effect of the revaluation of the retirement benefit obligation due to the amended pension legislation of the Russian Federation was reflected as the cost of past services in 2018. As of December 31, 2019, defined benefit obligations, including pension obligations in the amount of RUB 4,745 million and other long-term benefit obligations in the amount of RUB 803 million (RUB 3,806 million and 785 million as of December 31, 2018, respectively), were presented within Pension obligations in the consolidated statement of financial position. Changes in the present value of the pension obligations and other long-term benefits and fair value of plan assets for 2017 were as follows: Pension Fair value of Benefit December 31, 2016 (4,697 ) 252 (4,445 ) Current service cost (142 ) — (142 ) Net interest expense (331 ) 17 (314 ) Curtailment / settlement gain 1 — 1 Remeasurement of other long-term benefit obligations 174 — 174 Past service cost — — — Sub-total included in profit or loss (298 ) 17 (281 ) Benefit paid 313 (17 ) 296 Exchange difference (95 ) 19 (76 ) Actuarial changes arising from changes in demographic assumptions 51 — 51 Actuarial changes arising from changes in financial assumptions (69 ) — (69 ) Experience adjustments 163 — 163 Sub-total included in OCI 50 19 69 December 31, 2017 (4,632 ) 271 (4,361 ) Changes in the present value of the pension obligations and other long-term benefits and fair value of plan assets for 2018 were as follows: Pension Fair value of Benefit December 31, 2017 (4,632 ) 271 (4,361 ) Current service cost (130 ) — (130 ) Net interest expense (266 ) (13 ) (279 ) Curtailment / settlement gain 4 — 4 Remeasurement of other long-term benefit obligations (492 ) — (492 ) Past service cost 70 — 70 Sub-total included in profit or loss (814 ) (13 ) (827 ) Benefit paid 299 (17 ) 282 Exchange difference (213 ) 41 (172 ) Actuarial changes arising from changes in demographic assumptions (38 ) — (38 ) Actuarial changes arising from changes in financial assumptions 354 — 354 Experience adjustments 171 — 171 Sub-total included in OCI 274 41 315 December 31, 2018 (4,873 ) 282 (4,591 ) Changes in the present value of the pension obligations and other long-term benefits and fair value of plan assets for 2019 were as follows: Pension Fair value of Benefit December 31, 2018 (4,873 ) 282 (4,591 ) Current service cost (210 ) — (210 ) Net interest expense (297 ) 4 (293 ) Curtailment / settlement gain — — — Remeasurement of other long-term benefit obligations (25 ) — (25 ) Past service cost — — — Sub-total included in profit or loss (532 ) 4 (528 ) Benefit paid 344 (7 ) 337 Exchange difference 117 (16 ) 101 Actuarial changes arising from changes in demographic assumptions (88 ) — (88 ) Actuarial changes arising from changes in financial assumptions (772 ) — (772 ) Experience adjustments (7 ) — (7 ) Sub-total included in OCI (750 ) (16 ) (766 ) December 31, 2019 (5,811 ) 263 (5,548 ) In 2019, the effect of actuarial changes arising from changes in financial assumptions is connected with the significant decrease in discount rate. Amounts of the pension obligations recognised in the consolidated statement of the financial position were as follows: December 31, December 31, Current liabilities 615 772 Non-current liabilities 4,933 3,819 Total net pension obligations 5,548 4,591 The plan asset allocation of the investment portfolio was as follows as of December 31, 2019 and 2018: December 31, December 31, Debt instruments 142 161 Equity instruments 82 74 Cash and cash equivalents 18 19 Property 12 15 Other assets 9 13 Total plan assets 263 282 The investment strategy employed includes an overall goal to attain a maximum investment return with a strong focus on limiting the amount of risk taken. The strategy is to invest with a medium- to long-term perspective while maintaining a level of liquidity through proper allocation of investment assets. Investment policies include rules to avoid concentrations of investments. The vast majority of plan assets are measured using quoted prices in active markets for identical assets (Level 1 assets). The investment portfolio is primarily comprised of debt and equity instruments. Real estate and other alternative investments asset can be included when these have favorable return and risk characteristics. Debt instruments include investment grade and high yield corporate and government bonds with fixed yield and mostly short- to medium maturities. Equity instruments include selected investments in equity securities listed on active exchange market. The valuation of debt and equity securities is determined using a market approach, and is based on an unadjusted quoted prices. The Group’s entities have a practice to provide lump-sum financial support to former employees as well as certain life-long benefits, so there is a risk of changes in the life expectancy for pensioners. This risk is controlled by using most recent life expectancy tables. The risk of a significant fluctuation in interest rates is offset by actuarial best estimate assumptions in respect of discount rates. The Group does not identify the unusual, specific business plan or risk, as well as any significant risk concentrations. The Group performs sensitivity analysis calculating the whole defined benefit obligation and other long-term benefits obligation in different actuarial assumptions and comparing the results. There are no changes from the previous period in the methods and set of assumptions used in preparing the sensitivity analyses. The weighted average duration of the defined benefit obligation and other long-term benefits obligation is around 12 years as of December 31, 2019 and 2018. The key actuarial assumptions used to determine defined benefit obligations were as follows as of December 31, 2019 and 2018: December 31, December 31, Discount rate Russian entities 6.60 % 8.60 % German entities 1.10 % 1.90 % Ukrainian entity 5.70 % 11.80 % Austrian entities 0.75 % 1.70 % Inflation rates Russian entities 4.00 % 4.00 % Ukrainian entity 6.70 % 6.60 % Rate of compensation increase Russian entities 5.10 % 5.00 % German entities 4.00 % 4.00 % Ukrainian entity 9.90 % 9.60 % Austrian entities 2.25 % 2.25 % The results of sensitivity analysis of defined benefit obligations for the Russian and Ukrainian entities as of December 31, 2019 and 2018 are presented below: 2019 2018 Discount rate 1% increase -9.20 % -6.75 % 1% decrease 11.00 % 7.85 % Inflation rate 1% increase 5.90 % 5.09 % 1% decrease -5.00 % -4.37 % Rate of compensation increase 1% increase 4.00 % 2.48 % 1% decrease -3.60 % -2.23 % Turnover rate 3% increase -7.40 % -5.98 % 3% decrease 7.90 % 7.87 % The results of sensitivity analysis of defined benefit obligations for Austrian entities as of December 31, 2019 and 2018 are presented below: 2019 2018 Discount rate 1% increase -10.20 % -10.03 % 1% decrease 12.20 % 11.98 % The results of sensitivity analysis of defined benefit obligations for German entities as of December 31, 2019 and 2018 are presented below: 2019 2018 Discount rate 1% increase -12.00 % -12.00 % 1% decrease 18.00 % 18.00 % The sensitivity analyses above have been prepared based on a method that extrapolates the impact on the defined benefit pension obligations and other long-term benefits obligations as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analyses are based on a change in one significant assumption, keeping all other assumptions constant. The sensitivity analysis may not be representative of an actual change in the defined benefit obligations and other long-term |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Provisions | 22. Provisions Rehabilitation Provisions for Provisions on Other Total At December 31, 2016 3,678 746 760 1,732 6,916 Arising during the year — 2,175 23 7 2,205 Utilized (79 ) (451 ) (1 ) (905 ) (1,436 ) Revision in estimated cash flow and discount rate change 82 — — — 82 Unused amounts reversed — (180 ) (232 ) (551 ) (963 ) Unwinding of discount 311 — — — 311 Exchange differences — — 26 32 58 At December 31, 2017 3,992 2,290 576 315 7,173 Current 178 2,290 576 315 3,359 Non-current 3,814 — — — 3,814 Arising during the year — 1,516 199 905 2,620 Utilized (77 ) (273 ) — (256 ) (606 ) Revision in estimated cash flow and discount rate change (309 ) — — — (309 ) Unused amounts reversed — (646 ) (188 ) (20 ) (854 ) Unwinding of discount 302 — — — 302 Exchange differences — 215 (4 ) 4 215 At December 31, 2018 3,908 3,102 583 948 8,541 Current 189 3,102 583 948 4,822 Non-current 3,719 — — — 3,719 Arising during the year — 1,346 980 — 2,326 Utilized (30 ) (264 ) — (722 ) (1,016 ) Revision in estimated cash flow and discount rate change 1,180 — — — 1,180 Unused amounts reversed — (1,200 ) (9 ) (197 ) (1,406 ) Unwinding of discount 345 — — — 345 Exchange differences — (150 ) (19 ) (5 ) (174 ) At December 31, 2019 5,403 2, 834 1,535 24 9,796 Current 165 2, 834 1,535 24 4,558 Non-current 5,238 — — — 5,238 Rehabilitation provision The Group has numerous site rehabilitation obligations that it is required to perform under law or contract once an asset is permanently taken out of service. The main part of these obligations is not expected to be paid in a foreseeable future, and will be funded from the general Group’s resources when respective works will be performed. The Group’s rehabilitation provisions primarily relate to its steel and mining production facilities with related landfills and dump areas and its mines. In 2019, the increase in rehabilitation provision is mostly due to significant decrease in discount rate. Provisions for legal claims A provision for the claims related to disputes over purchases was recognised in the amount of RUB 741 million in 2018 and reversed in 2019 due to favorable court judgment. Legal claim contingency As of December 31, 2019, management assesses the outcome of several court proceedings and claims where the Group’s companies act as defendants in the aggregate amount of RUB 2,195 million as possible based on the management’s analysis and discussions with the legal advisers. As of December 31, 2019, the Group as a defendant is involved in the court proceeding regarding the claim from one of the metallurgical plants as defined in Note 8(a). It is not practicable to estimate the potential effect of this claim and the timing of the payment, if any. The Group has been advised by its legal counsel that it is only possible, but not probable, that the action will succeed. Provisions on taxes other than income tax Management believes that it has paid or accrued all applicable taxes. Where uncertainty exists, the Group has accrued tax liabilities based on management’s best estimate of the probable outflow of resources embodying economic benefits which will be required to settle these liabilities. In accordance with IAS 37, the Group recorded RUB 1,535 million and RUB 583 million of other tax claims including fines and penalties that management believes are probable as of December 31, 2019 and 2018, respectively. The Group does not believe that any other material tax matters exist relating to the Group, including current pending or future governmental claims and demands, which would require adjustment to the accompanying consolidated financial statements in order for those statements not to be materially misstated or misleading as of December 31, 2019. Possible tax liabilities on taxes other than income tax, which were identified by management as those that can be subject to different interpretations of the tax law and regulations, are not accrued in the consolidated financial statements. The amount of such liabilities was RUB 1,904 million and RUB 1,689 million as of December 31, 2019 and 2018, respectively. Environmental Possible liabilities, which were identified by management as those that can be subject to potential claims from environmental authorities, are not accrued in the consolidated financial statements. The amount of such liabilities was not significant. |
Issued capital and reserves
Issued capital and reserves | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Issued capital and reserves | 23. Issued capital and reserves Common shares The capital stock of Mechel PAO consists of 416,270,745 common shares, each with a nominal value of 10 Russian rubles, all of which are issued, fully paid for and outstanding under the Russian law, of which 1,018,996 and nill were owned by one of the Group’s subsidiaries as of December 31, 2019 and 2018, respectively. In December 2019, the Group reacquired 1,018,996 common shares for RUB 63 million. Mechel PAO is authorised to issue additional 81,698,341 common shares with a nominal value of 10 Russian rubles each. Preferred shares As of December 31, 2019 and 2018, the Group had 138,756,915 preferred shares with a nominal value of 10 Russian rubles each, authorised and issued under the Russian law and representing 25% of the Mechel PAO’s share capital, of which 83,963,279 and 83,254,149 shares were outstanding and fully paid for, and the remaining 54,793,636 and 55,502,766 shares were owned by one of the Group’s subsidiaries. In December 2019, the Group sold 709,130 preferred shares for RUB 63 million. Under the Russian law and the Mechel PAO’s Charter, these preferred shares are non-cumulative and have no voting rights, except for cases stipulated by the law and the Charter. The dividend yield paid per one preferred share is also fixed by the Charter and amounts to 20% of the consolidated annual net profit of the Group under IFRS divided by 138,756,915 issued preferred shares. Distributions made and proposed Mechel and its subsidiaries can distribute all profits as dividends or transfer them to reserves in accordance with applicable legislation and the charters. Dividends may only be declared from undistributed earnings as shown in the statutory financial statements of Russian subsidiaries. Dividends from Russian companies are generally subject to a 13% withholding tax for residents and 15% for non-residents, which could be reduced or eliminated if paid to foreign owners under certain applicable double tax treaties. Effective January 1, 2008, intercompany dividends may be subject to a withholding tax of 0% (if at the date of dividends declaration, the dividend-recipient Russian company held a controlling (over 50%) interest in the share capital of the company (Russian or foreign) of the dividend payer for a period over one year and the residence of the dividend distribution foreign company is not included into the Ministry of Finance offshore list. Herewith 0% tax rate is not applicable to the income received by foreign entities that are recognised as Russian residents in accordance with the Russian Tax Code. On June 14 2019, the Group’s subsidiary declared dividends attributable to non-controlling interests of RUB 0.030 million for 2018. On June 28, 2019, Mechel declared dividends of RUB 1,516 million (RUB 18.21 per preferred share) to the third party holders of preferred shares for 2018. On June 29, 2018, the Group’s subsidiaries declared dividends attributable to non-controlling interests of RUB 0.056 million and Mechel declared dividends of RUB 1,387 million (RUB 16.66 per preferred share) to the holders of preferred shares for 2017. On June 30, 2017, the Group’s subsidiaries declared dividends attributable to non-controlling interests of RUB 359 million and Mechel declared dividends of RUB 856 million (RUB 10.28 per preferred share) to the holders of preferred shares for 2016. Additional paid-in capital In 2017, additional paid-in capital was decreased by RUB 3,948 million due to the acquisition of non-controlling interests of 2.53% and 0.21% in certain Group’s subsidiaries with the negative carrying value of RUB 590 million. Earnings (loss) per share (EPS) Basic EPS is calculated by dividing the profit (loss) for the year attributable to common equity holders of the parent by the weighted average number of common shares outstanding during the year. There were no dilutive securities issued as of December 31, 2019, 2018 and 2017. |
Other income_expenses
Other income/expenses | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Other income/expenses | 24. Other income/expenses 24.1 Administrative and other operating expenses General, administrative and other operating expenses are comprised of the following: 2019 2018 2017 Wages, salaries and social security costs 9,116 10,482 7,769 Office and maintenance expenses 1,231 1,213 1,211 Loss on write-off of non-current assets 1,103 859 321 Depreciation 728 756 605 Fines and penalties related to business contracts 630 391 303 Audit and consulting services 558 941 631 Provision for legal claims, net 146 870 1,995 Banking charges and services 330 245 271 Consumables 308 307 276 Social expenses 303 387 406 Business trips 115 139 132 Expense relating to short-term leases (Note 10.6) 83 158 165 Write off of trade and other receivables 5 2 109 Net result from disposal of non-current assets — — 34 Other 1,660 2,015 1,683 Total 16,316 18,765 15,911 Loss on write-off of non-current assets is represented by the write-down of certain property, plant and equipment items as no future economic benefits are expected from the use or disposal. 24.2 Employee benefits expense Employee benefits expenses are comprised of the following: 2019 2018 2017 Included in cost of sales Wages and salaries 23,022 21,519 20,591 Social security costs 7,485 6,887 6,438 Post-employment benefits 210 130 142 Included in selling and distribution expenses Wages and salaries 3,882 3,784 3,686 Social security costs 1,052 999 973 Included in administrative and other operating expenses Wages and salaries 7,206 8,444 6,259 Social security costs 1,910 2,038 1,510 Total 44,767 43,801 39,599 24.3 Other operating income Other operating income is comprised of the following: 2019 2018 2017 Income from fines and penalties related to business contracts 160 248 307 Net result from disposal of non-current assets 27 128 — Curtailment and result of remeasurement of pension obligations 25 93 175 Gain from sales of scrap materials — 378 226 Subsidies received from the governmental authorities as a compensation for operating activities (energy tariffs) — 359 496 Other 533 505 183 Total 745 1,711 1,387 In 2019, 2018 and 2017, the Group recognised gain on remeasurement of pension obligations because of the changes in the actuarial assumptions, fluctuation in payment amounts from year to year, adjustment in the financial support amount per one pensioner. 24.4 Finance income and finance costs Finance income is comprised of the following: 2019 2018 2017 Effect of restructuring of loans and leases 362 33,514 264 Interest income on other financial assets 180 207 158 Income from the discounting of financial instruments 58 15 14 Remeasurement of fair value of financial instruments (Note 10.5) — 320 197 Total 600 34,056 633 Effect of restructuring of loans and leases in 2019 mainly include waiving of fines and penalties on leases with Gazprombank Leasing and Cat Financial, in 2018, primarily relates to VTB (Note 10.1 (b)), Gazprombank (Note 10.1 (c)) and the refinancing of the pre-export credit facility (Note 10.1 (a)). Finance costs are comprised of the following: 2019 2018 2017 Interest on loans and borrowings 31,750 35,556 40,298 Interest expense on lease liabilities 1,409 1,104 1,230 Fines and penalties on overdue loans and borrowing payments and overdue interest payments 733 858 1,086 Fines and penalties on overdue leases 49 10 75 Total finance costs related to loans, borrowings and leases 33,941 37,528 42,689 Expenses related to discounting of financial instruments 4,251 3,916 4,179 Unwinding of discount on rehabilitation provision 345 302 311 Interest expenses under pension liabilities 293 279 314 Remeasurement of fair value of the call option (Note 10.5) — 27 117 Total 38,830 42,052 47,610 Expenses related to discounting of financial instruments include changes in the measurement of the non-current obligation related to put-option granted on non-controlling 24.5 Other income and other expenses Other income is comprised of the following: 2019 2018 2017 Write-off of trade and other payables with expired legal term 167 425 516 Gain on royalty and other proceeds associated with disposal of Bluestone — 3 474 Gain on final settlements from subsidiaries’ disposal occurred in previous years — 3 — Gain on forgiveness and restructuring of trade and other payables — — 447 Other income 72 81 58 Total 239 512 1,495 Other expenses are comprised of the following: 2019 2018 2017 Loss on sales and purchases of foreign currencies 148 108 114 Other expenses 356 206 106 Total 504 314 220 Write-off of trade and other payables with expired legal term constitutes gain on the write-off of payable amounts that were written-off due to legal liquidation of the creditors or expiration of the statute of limitation. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Segment information | 25. Segment information The Group’s operations are presented in three business segments as follows: • Steel segment, comprising production and sales of semi-finished steel products, carbon and specialty long products, carbon and stainless flat products, value-added downstream metal products, including forgings, stampings, hardware, rails, balks and ferrosilicon; • Mining segment, comprising production and sales of coal (coking and steam) and middlings, coke and chemical products, and iron ore concentrate, which supplies raw materials to the Steel and Power segments and also sells substantial amounts of raw materials to third parties; • Power segment, comprising generation and sales of electricity and heat power, which supplies electricity and heat power to the Steel and Mining segments and also sells a portion of electricity and heat power to third parties. The above three segments meet criteria for reportable segments. No operating segments have been aggregated to form the above reportable operating segments. Subsidiaries are consolidated by the segment to which they belong based on their products and by which they are managed. The Group’s management evaluates performance of the segments based on segment revenues, gross margin, operating income (loss), assets and liabilities. Transfer prices between operating segments are on an arm’s-length basis in a manner similar to transactions with third parties. Income tax, deferred tax related to the consolidated group of taxpayers and certain other assets and liabilities are not allocated to those segments as they are managed on the group basis. As of December 31, 2019 and for the year then ended Mining Steel Power Adjustments Consolidated Revenue from contracts with external customers 92,996 174,850 28,721 — 296,567 Inter-segment revenue 37,710 6,107 15,606 (59,423 ) — Gross profit 68,152 27,525 13,190 (157 ) 108,710 Gross margin, % 52.1 15.2 29.8 — 36.7 Depreciation and amortisation (8,541 ) (6,153 ) (482 ) — (15,176 ) Impairment of goodwill and other non-current assets, net (3,688 ) 1,884 — — (1,804 ) Operating profit 23,902 7,126 1,548 (1,078 ) 31,498 Share of profit of associates, net 28 — — — 28 Finance income 524 75 1 — 600 Intersegment finance income 386 375 30 (791 ) — Finance cost (23,934 ) (14,514 ) (382 ) — (38,830 ) Intersegment finance cost (195 ) (325 ) (271 ) 791 — Income tax expense (94 ) (503 ) (333 ) (7,057 ) (7,987 ) Profit for the year 4,955 6,934 531 (8,135 ) 4,285 Segment assets 202,423 100,493 7,610 1,979 312,505 Segment liabilities 300,058 233,279 9,432 3,333 546,102 Investments in associates 321 — — — 321 As of December 31, 2018 and for the year then ended Mining Steel Power Adjustments Consolidated Revenue from contracts with external customers 96,882 187,918 27,774 — 312,574 Inter-segment revenue 37,549 5,865 15,471 (58,885 ) — Gross profit 77,199 44,433 12,571 615 134,818 Gross margin, % 57.4 22.9 29.1 — 43.1 Depreciation and amortisation (7,621 ) (5,738 ) (500 ) — (13,859 ) Impairment of goodwill and other non-current assets, net (3,684 ) (819 ) (2,719 ) — (7,222 ) Operating profit (loss) 32,574 19,831 (3,240 ) 615 49,780 Share of profit of associates, net 10 — — — 10 Finance income 23,387 9,478 1,191 — 34,056 Intersegment finance income 1,071 395 41 (1,507 ) — Finance cost (28,932 ) (12,810 ) (310 ) — (42,052 ) Intersegment finance cost (220 ) (1,015 ) (272 ) 1,507 — Income tax (expense) benefit (5,940 ) 531 83 2,645 (2,681 ) Profit (loss) for the year 11,489 1,331 (2,544 ) 3,260 13,536 Segment assets 208,123 97,373 7,519 4,610 317,625 Segment liabilities 296,125 247,241 9,469 (2,015 ) 550,820 Investments in associates 293 — — — 293 As of December 31, 2017 and for the year then ended Mining Steel Power Adjustments Consolidated Revenue from contracts with external customers 100,129 172,760 26,224 — 299,113 Inter-segment revenue 42,286 7,622 16,338 (66,246 ) — Gross profit 93,464 34,013 12,724 (1,444 ) 138,757 Gross margin, % 65.6 18.9 29.9 — 46.4 Depreciation and amortisation (7,979 ) (5,800 ) (448 ) — (14,227 ) Impairment of goodwill and other non-current assets, net (3,800 ) (2,281 ) — — (6,081 ) Operating profit 48,190 9,154 1,267 (1,444 ) 57,167 Share of profit of associates, net 18 — — — 18 Finance income 475 150 8 — 633 Intersegment finance income 1,335 567 49 (1,951 ) — Finance cost (34,324 ) (12,793 ) (493 ) — (47,610 ) Intersegment finance cost (222 ) (1,342 ) (387 ) 1,951 — Income tax (expense) benefit (3,410 ) (203 ) (229 ) 692 (3,150 ) Profit (loss) for the year 17,210 (4,116 ) 228 (752 ) 12,570 Segment assets 209,630 100,543 10,417 (1,463 ) 319,127 Segment liabilities 371,196 184,952 9,808 (2,696 ) 563,260 Investments in associates 283 — — — 283 The following table presents the Group’s revenues from contracts with customers segregated between domestic and export sales. Domestic represents sales by a subsidiary in the country in which it is located. This category is further divided between subsidiaries located in Russia and other countries. Export represents cross-border sales by a subsidiary regardless of its location. 2019 2018 2017 Domestic Russia 171,215 178,880 176,906 Other 28,469 29,666 23,445 Total 199,684 208,546 200,351 Export 96,883 104,028 98,762 Total revenue 296,567 312,574 299,113 Allocation of total revenue from contracts with customers by country is based on the location of the customer. The Group’s total revenue from external customers by geographic area were as follows: 2019 2018 2017 Russia 171,344 178,997 177,005 Asia 63,187 61,840 63,182 Europe 38,334 44,263 36,605 CIS 21,465 23,877 19,346 Middle East 1,983 3,130 2,212 USA 155 258 286 Other regions 99 209 477 Total 296,567 312,574 299,113 The majority of the Group’s non-current assets are located in Russia. The carrying amounts of mineral licenses and property, plant and equipment pertaining to the Group’s major operations were as follows: December 31, December 31, Russia 225,755 219,504 Germany 1,225 1,532 Austria 677 637 Czech Republic 237 224 Other 173 50 Total 228,067 221,947 Because of the significant number of customers, there are no individual external customers that generate sales greater than 10% of the Group’s consolidated total revenue from contracts with customers. The following table presents the breakdown of the Group’s revenues from contracts with external customers by major products: 2019 2018 2017 Mining segment Coal and middlings 71,970 80,022 84,341 Coke and chemical products 17,970 14,205 13,747 Iron ore concentrate 1,179 839 220 Other 1,877 1,816 1,821 Total 92,996 96,882 100,129 Steel segment Long steel products 97,692 105,722 96,768 Hardware 27,086 30,040 27,578 Flat steel products 23,371 22,786 22,505 Forgings and stampings 14,818 15,848 12,247 Ferrosilicon 3,229 3,927 2,807 Steel pipes 3,281 3,230 2,733 Semi-finished steel products 137 54 492 Other 5,236 6,311 7,630 Total 174,850 187,918 172,760 Power segment Electricity 26,965 26,009 24,297 Other 1,756 1,765 1,927 Total 28,721 27,774 26,224 Total revenue 296,567 312,574 299,113 |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2019 | |
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Events after the reporting period | 26. Events after the reporting period The Group evaluated subsequent events from December 31, 2019 through the date the consolidated financial statements were issued and concluded that no subsequent events have occurred that would require recognition or disclosure in the consolidated financial statements other than discussed below and disclosed in Note 4 and Note 10.4. Since January 2020, the Russian government implemented preventive measures to curb the spread of coronavirus (COVID-19) in the country by imposing quarantines, carrying raids on potential virus carriers and using facial recognition to impose quarantine measures. The extent to which the coronavirus impacts the Group’s results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. Chief Executive Officer of Mechel PAO March 19, 2020 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Business combinations and goodwill | (a) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as of the acquisition date. Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IFRS 9 Financial Instruments Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests) and any previous interest held over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in the consolidated statement of profit (loss) and other comprehensive income. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained. |
Investments in associates | (b) Investments in associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. The considerations made in determining significant influence are similar to those necessary to determine control over subsidiaries. The Group’s investments in its associate are accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for impairment separately. The consolidated statement of profit (loss) and other comprehensive income reflects the Group’s share of the results of operations of the associate. Any change in OCI of those investees is presented as part of the Group’s OCI movements. In addition, when there has been a change recognised directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate. The aggregate of the Group’s share of profit or loss of an associate is shown on the face of the consolidated statement of profit (loss) and other comprehensive income outside operating profit and represents profit or loss after tax and non-controlling The financial statements of the associate are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the investment in associate and its carrying value, and then recognises the loss as ‘Share of profit (loss) of associates’ in the consolidated statement of profit (loss) and other comprehensive income. Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognised in the consolidated statement of profit (loss) and other comprehensive income. |
Current versus non-current classification | (c) Current versus non-current classification The Group presents assets and liabilities in the consolidated statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realised or intended to be sold or consumed in the normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realised within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Group classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. |
Fair value measurement | (d) Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — quoted (unadjusted) market prices in active markets for identical assets or liabilities; • Level 2 — valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; • Level 3 — valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognised in the consolidated financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. |
Revenue from contracts with customers | (e) Revenue from contracts with customers Revenue from contracts with customers is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. Revenue from contracts with customers is inflows from sales of goods that constitute ongoing major operations of the Group and is reported as such in the consolidated statement of profit (loss) and other comprehensive income. Inflows from incidental and peripheral operations, net of related costs, are considered gains and are included in other operating income and other income in the consolidated statement of profit (loss) and other comprehensive income. The following criteria are also applicable to other specific revenue transactions from contracts with customers: Sales of goods and rendering services Revenue from the sale of goods and rendering services is recognised when (or as) the Group satisfies a performance obligation by transferring promised goods and services to a customer. An asset is transferred when (or as) the customer obtains control of the asset. The Group is engaged into contracts for sales of goods which include transportation and freight services. In these contracts the Group accounts for two separate performance obligations: the obligation to provide goods to the customer and the obligation to arrange the delivery (transportation, freight) of goods to the customer. Revenue is recognised at a point of time when control over the goods passes to the customer (at the loading port, place or after delivery to the first carrier). Revenue related to freight and transportation component is recognised over time as the service is rendered. Revenue from the sale of goods and rendering services is measured at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services, net of returns and allowances, trade discounts, associated sales taxes (VAT) and export duties. Certain contracts are provisionally priced so that price is not settled until the final price based on the market price for the relevant period is determined. Revenue from these transactions is initially recognised based on related coal market indices. An adjustment to the final price on provisionally priced contracts is recorded in revenue. Sales of power In the Power segment (Note 25), revenue is recognised based on unit of power measure (kilowatts) delivered to customers, since at that point revenue recognition criteria are met. The billings are usually done on a monthly basis, several days after each month end. Variable consideration If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. Some contracts with customers provide a right of return, trade discounts or volume rebates. IFRS 15 Revenue from Contracts with customers Significant financing component The Group decided to use the practical expedient provided in IFRS 15, which allows not to adjust the promised amount of consideration for the effects of a significant financing component in the contracts where the Group expects, at contract inception, that the period between the Group’s transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Warranty obligations The Group provides warranties to its customers under the Russian Federation Law requirements. These warranties represent assurance type warranties and do not require providing any additional service to the Group’s customers. This type of warranties is accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets Trade receivables A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in Note 3 (n). The disclosure of significant accounting judgements relating to revenue from contracts with customers is provided in Note 3 (u). |
Taxes | (f) Taxes Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable income. Uncertain tax positions The Group’s policy is to comply fully with the applicable tax regulations in the jurisdictions in which its operations are subject to income taxes. The Group’s estimates of current income tax expense and liabilities are calculated assuming that all tax computations filed by the Group’s subsidiaries will be subject to a review or audit by the relevant tax authorities. The Group and the relevant tax authorities may have different interpretations of how regulations should be applied to actual transactions. Such uncertain tax positions are accounted for in accordance with IAS 12 Income Taxes Deferred tax Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except: • When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. • In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except: • When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. • In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside profit or loss is recognised in correlation to the underlying transaction either in OCI or directly in equity. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. |
Foreign currencies | (g) Foreign currencies The Group’s consolidated financial statements are presented in Russian rubles to comply with the Law 208-FZ. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currencies of the main Russian and European subsidiaries of the Group are the Russian ruble and euro, respectively. The U.S. dollar is the functional currency of other main international operations of the Group. The Group uses the direct method of consolidation and on disposal of a foreign operation; the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method. (i) Transactions and balances Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency exchange rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rates as of the reporting date. Differences arising on settlement or translation of monetary items are recognised in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The following table presents the exchange rates for the functional and operating currencies at various subsidiaries, other than the presentation currency: Exchange rates* at Average exchange rates* Currency December 31, December 31, December 31, December 31, December 31, U.S. dollar 61.91 69.47 64.74 62.71 58.35 Euro 69.34 79.46 72.50 73.95 65.90 (*) Exchange rates shown in Russian rubles for one currency unit. The majority of the balances and operations not already denominated in the presentation currency were denominated in the U.S. dollar and euro. The Russian ruble is not a convertible currency outside the territory of Russia. Official exchange rates are determined daily by the Central Bank of the Russian Federation (“CBR”) and are generally considered to be a reasonable approximation of market rates. (ii) Group companies On consolidation, the assets and liabilities of foreign operations are translated into the Russian rubles at the rate of exchange prevailing at the reporting date and their statements of profit (loss) and other comprehensive income are translated at the average exchange rate for the period. The exchange differences arising on translation for consolidation are recognised in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is recognised in profit or loss. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation and translated at the exchange rate as of the reporting date. |
Non-current assets held for sale and discontinued operations | (h) Non-current assets held for sale and discontinued operations The Group classifies non-current assets (or disposal group) as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Such non-current assets (or disposal group) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (or disposal groups). For the sale to be highly probable, the appropriate level of management must be committed to a plan to sell the asset (or disposal group), and an active program to locate a buyer and complete the plan must have been initiated. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale. Assets and liabilities classified as held for sale are presented separately as current items in the consolidated statement of financial position. A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and: • Represents a separate major line of business or geographical area of operations; • Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or • Is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the consolidated statement of profit (loss) and other comprehensive income. |
Mineral licenses | (i) Mineral licenses The Group’s mining segment production activities are located within Russia. The Group’s mineral reserves and deposits are situated on the land belonging to government and regional authorities. Mining minerals requires a subsoil license from the state authorities with respect to identified mineral deposits. The Group obtains licenses from such authorities and pays certain taxes to explore and produce from these deposits. These licenses expire up to 2038, with the most significant licenses expiring between 2024 and 2033, and management believes that they may be extended at the initiative of the Group without substantial cost, based on previous experience. Management intends to extend such licenses for deposits expected to remain productive subsequent to their license expiry dates. Mineral licenses acquired separately are measured on initial recognition at cost. The cost of mineral licenses acquired in a business combination is their fair value at the date of acquisition. Mineral licenses are amortised under a unit of production basis over proved and probable reserves of the relevant area. In order to calculate proved and probable reserves, estimates and assumptions are used about a range of geological, technical and economic factors, including but not limited to quantities, grades, production techniques, recovery rates, production costs, transport costs, commodity demand, commodity prices and exchange rates. There are numerous uncertainties inherent in estimating proved and probable reserves, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. The Group established a policy according to which internal mining engineers review proved and probable reserves annually. This policy does not change the Group’s approach to the measurement of proved and probable reserves as of their acquisition dates as part of business combinations that involve independent mining engineers. The Group’s proved and probable reserve estimates as of the reporting date were made by internal mining engineers and the majority of the assumptions underlying these estimates had been previously reviewed and verified by independent mining engineers. The carrying values of the mineral licenses were reduced proportionate to the depletion of the respective mineral reserves at each deposit related to mining and production of reserves adjusted for the reserves re-measurement and purchase accounting effects. Reduction in carrying values of the mineral licenses is included in the amortisation charge proportional to the depletion for the period within the cost of sales in the consolidated statement of profit (loss) and other comprehensive income. No residual value is assumed in the mineral license valuation. |
Property, plant and equipment | (j) Property, plant and equipment Property, plant and equipment and construction in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of the rehabilitation provision, and, for qualifying assets (where relevant), borrowing costs and other costs incurred in connection with the borrowings. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset. When significant parts of property, plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the property, plant and equipment as a replacement if the recognition criteria are satisfied. Where a separately depreciated asset, or part of an asset, is replaced, the expenditure is capitalised. Where part of the asset was not separately considered as a component and therefore not depreciated separately, the replacement value adjusted for prices inflation is used to estimate the carrying amount of the replaced asset(s) which is immediately written off. All other repair and maintenance costs are recognised in the consolidated statement of profit (loss) and other comprehensive income as incurred. The capitalised value of right-of-use assets is also included in property, plant and equipment. The present value of the expected cost for the rehabilitation of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met. Inventories planned to be used for construction and spare parts with useful lives over one year are recorded within property, plant and equipment. Mining assets and processing plant and equipment Mining assets and processing plant and equipment are those assets, including construction in progress, which are intended to be used only for the needs of a certain mine or field, and upon full extraction exhausting of the reserves of such mine or the field, these assets cannot be further used for any other purpose without a capital reconstruction. Items of production mines are stated at cost, less accumulated depreciation and accumulated impairment losses, if any. Costs of developing new underground mines are capitalized. Underground development costs, which are costs incurred to make the mineral physically accessible, include costs to prepare property for shafts, driving main entries for ventilation, haulage, personnel, construction of airshafts, roof protection and other facilities. Additionally, interest expense subject to allocation to the cost of developing mining properties and to constructing new facilities is capitalized until assets are ready for their intended use. Exploration and evaluation activity involves the search for mineral resources, the determination of technical feasibility and the assessment of commercial viability of identified proved and probable reserves. Once the legal right to explore has been acquired, exploration and evaluation expenditure is charged to profit or loss as incurred, unless the Group concludes that a future economic benefit is more likely than not to be realized. As part of its surface mining operations, the Group incurs stripping costs both during the development phase and production phase of its operations. Stripping costs incurred in the development phase of a mine, before the production phase commences, are capitalized as part of cost of constructing the mine. In general case, the capitalization of development stripping costs ceases when the mine is commissioned and ready for use as intended by management. Stripping costs undertaken during the production phase of mine are charged to profit and loss as cost of sales as incurred. In some cases, the further development of a mine may require stripping operations, equivalent by scale to those that were incurred in the development phase of a mine. In such cases, production stripping costs are capitalized similarly to the capitalization of costs during the development phase of a mine. Stripping costs incurred in the production phase are capitalized, if all of the following criteria according to IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (a) it is probable that the future economic benefit associated with the stripping activity will flow to the entity; (b) the entity can identify the component of the ore body for which access has been improved; (c) the costs relating to the stripping activity associated with that component can be measured reliably. When mining assets and processing plant and equipment are placed in production, the applicable capitalized costs, including mine development costs, are depleted using the unit-of-production method at the ratio of tonnes of mineral mined or processed to the estimated proved and probable mineral reserves that are expected to be mined during the estimated lives of the mines. Capitalized production stripping costs are also depleted using the unit-of-production method on a basis consistent with the mine production and reserves to which they relate. The unit-of-production method is used for the underground mine development structure costs as their useful lives coincide with the estimated lives of mines, provided that all repairs and maintenance are timely carried out. A decision to abandon, reduce or expand activity on a specific mine is based upon many factors, including general and specific assessments of mineral reserves, anticipated future mineral prices, anticipated costs of developing and operating a producing mine, the expiration date of mineral licenses, and the likelihood that the Group will continue exploration on the mine. Based on the results at the conclusion of each phase of an exploration program, properties that are not economically feasible for production are re-evaluated to determine if future exploration is warranted and that carrying values are appropriate. The ultimate recovery of these costs depends on the discovery and development of economic ore reserves or the sale of the companies owning such mineral rights. Other property, plant and equipment Capitalized production costs for internally developed assets include material, direct labor costs, and allocated material and manufacturing direct overhead costs. When construction activities are performed over an extended period, borrowing costs incurred in connection with the borrowing of funds are capitalized. Construction-in-progress and equipment held for installation are not depreciated until the constructed or installed asset is substantially ready for its intended use. Property, plant and equipment other than mining assets and processing plant and equipment is depreciated using the straight-line method, apart from railway of the Elga coal deposit which is depreciated using the units of production method as discussed in (u) Significant accounting judgements, estimates and assumptions). Upon sale or retirement, the acquisition or production cost and related accumulated depreciation are removed from the consolidated statement of financial position and any gain or loss is included in the consolidated statement of profit (loss) and other comprehensive income. The following useful lives are used as a basis for calculating depreciation: Category of asset Useful economic Buildings and constructions 5-85 Operating machinery and equipment 2-30 Transportation vehicles 2-25 Other equipment 2-15 |
Leases | (k) Leases The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. Right-of-use assets The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets as follows: Category of asset Years Buildings and constructions 2-5 Operating machinery and equipment 5-10 Transportation vehicles 2-22 The right-of-use assets related to land are depreciated using the straight-line method based on the period of land use (from 2 to 91 years). The right-of-use assets are also subject to impairment. Refer to the accounting policies in Note 3 (q). Lease liabilities At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment, office and storage facilities (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). The Group also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term. Sale and leaseback transactions The Group sells and leases back operating machinery and transportation vehicles. The Group keeps the transferred assets subject to the sale and leaseback transaction on the balance sheet and accounts for amounts received as a financial liability due to intention to excercise repurchase option for the underlying assets set by contracts. |
Borrowing costs | (l) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale (a qualifying asset) are capitalised as part of the cost of the respective asset. Borrowing costs consist of interest including exchange differences arising from foreign currency borrowings and other costs that an entity incurs in connection with the borrowing of funds. Where funds are borrowed specifically to finance a project, the amount capitalised represents the actual borrowing costs incurred. Where the funds used to finance a project form part of general borrowings, the amount capitalised is calculated using a weighted average of rates applicable to relevant general borrowings of the Group during the period. According to IAS 23 Borrowing Costs |
Intangible assets | (m) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Intangible assets with determinable useful lives are amortised using the straight-line method over their estimated period of benefit, ranging from two to twenty five years, and assessed for impairment whenever there is an indication that the intangible asset may be impaired. |
Financial instruments - initial recognition and subsequent measurement | (n) Financial instruments — initial recognition and subsequent measurement A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (i) Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15 (Note 3 (e)). In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset. Subsequent measurement For purposes of subsequent measurement, financial assets are classified in three categories: • Financial assets at amortised cost; • Financial assets at fair value through OCI; • Financial assets at fair value through profit or loss. Financial assets at amortised cost This category of financial assets is the most relevant to the Group. The Group measures financial assets at amortised cost if both of the following conditions are met: • The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest rate (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. This category generally applies to trade and other receivables excluding trade receivables on provisionally priced contracts. Financial assets at fair value through OCI The Group measures financial assets at fair value through OCI if both of the following conditions are met: • The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. For financial assets at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the consolidated statement of profit (loss) and other comprehensive income and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition of financial assets represented by debt instruments at fair value through OCI the cumulative fair value change recognised in OCI is recycled to profit or loss in opposite to equity instruments at fair value through OCI with the cumulative fair value change remained in OCI. The Group has no instruments measured at fair value through OCI. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Trade receivables on provisionally priced contracts are measured at fair value through profit or loss. Trade receivables on provisionally priced contracts are remeasured at each reporting date based on the market price for the relevant period. Financial assets at fair value through profit or loss are carried in the consolidated statement of financial position at fair value with net changes in fair value recognised in the consolidated statement of profit or loss. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when: • The rights to receive cash flows from the asset have expired; or • The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Allowance for expected credit losses of financial assets Further disclosures relating to impairment of financial assets are also provided in the following notes: • Financial assets — Note 10. • Trade and other receivables — Note 12. Allowance for expected credit losses is recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, expected credit losses are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month expected credit losses). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime expected credit losses). For purposes of measuring probability of default, the Group defines default as a situation when the exposure meets one or more of the following criteria: • the customer is more than 90 days past due on its contractual payments; • international rating agencies have classified the customer in the default rating class; • the customer meets the unlikeliness-to-pay criteria listed below: • the customer is insolvent; • the customer is in breach of financial covenants; and • it is becoming likely that the customer will enter bankruptcy. For trade receivables and contract assets, the Group applies a simplified approach in calculating expected credit losses. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime expected credit losses at each reporting date. To estimate the allowance for expected credit losses for trade and other receivables the Group applied 2-dimension model. For individual significant balances with specific characteristics the individual allowance rates were applied based on the historical experience of relationships with those counterparties, individual analysis of their current financial position and forward-looking factors specific to the debtors and the economic environment. For all other balances which are similar by the nature the standard simplified approach was applied with the use of a provision matrix based on the Group’s historical credit loss experience adjusted for forward-looking information. The provision rates are based on days past due for groupings of various homogeneous counterparties. At each reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10.2. The Group does not hold collateral as security. Allowance for expected credit losses on cash and cash equivalents is calculated based on the 12-month expected loss basis and reflects the short maturities of the exposures. (ii) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Gains or losses on liabilities held for trading are recognised in the consolidated statement of profit (loss) and other comprehensive income. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. Loans and borrowings This is the category most relevant to the Group. After initial recognition, loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the consolidated statement of profit (loss) and other comprehensive income. This category generally applies to loans and borrowings (Note 10). Put options written on non-controlling interests The Group initially measures a financial liability at the present value of the redemption amount in the parent’s consolidated financial statements for written puts on non-controlling interests, therefore, when the Group grants non-controlling interests a put option to sell part or all of their interests in a subsidiary during a certain period, on the date of grant, the non-controlling interests are classified as a financial liability. The Group remeasures the financial liability at the end of each reporting period based on the estimated present value of the consideration to be transferred upon the exercise of the put option. The respective finance cost is recognised in the consolidated statement of profit (loss) and other comprehensive income within finance costs. Call options written on preferred shares In the consolidated financial statements the Group initially measures a financial liability for call options granted in respect of preferred shares at fair value. Determining the fair value of the call options at the recognition date is subject to judgment. The Group calculated the fair value of call options using mix of the Black-Scholes option pricing model and model of Asian options. The models require input of assumptions, including expected volatility, expected term, risk-free interest rate and dividend yield and other subjective assumptions. The Group remeasures the financial liability at the end of each reporting period at fair value. The respective finance cost or income is recognised in the consolidated statement of profit (loss) and other comprehensive income within finance costs or finance income. Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the consolidated statement of profit (loss) and other comprehensive income. (iii) Interest income For all financial instruments measured at amortised cost interest income is recorded using the EIR. The EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. Interest income is included in finance income in the consolidated statement of profit (loss) and other comprehensive income. |
Derivative financial instruments | (o) Derivative financial instruments The Group uses derivative financial instruments, such as cross currency swap and cross currency option. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. For the years ended December 31, 2019, 2018 and 2017, the Group did not have any derivatives designated as hedging instruments. |
Inventories | (p) Inventories Inventories are measured at the lower of cost or net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses. The cost of inventories is determined under the weighted average cost method, and includes all costs in bringing the inventory to its present location and condition. The elements of costs include direct material, labor and allocable material and manufacturing overhead. Costs of production in process and finished goods include the purchase costs of raw materials and conversion costs such as direct labor and allocation of fixed and variable production overheads. Raw materials are valued at a purchase cost inclusive of freight and other shipping costs. Coal and iron ore inventory costs include direct labor, supplies, depreciation of equipment and mining assets, and amortisation of licenses to use mineral reserves, mine operating overheads and other related costs. Operating overheads are charged to expenses in the periods when the production is temporarily paused or abnormally low. |
Impairment of non-current assets | (q) Impairment of non-current assets Further disclosures relating to impairment of non-current assets are also provided in the following notes: • Intangible assets — Note 16. • Property, plant and equipment — Note 15. • Impairment of goodwill and other non-current assets — Note 17. The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The Group’s CGUs represent single entities with one component of business in each case. In assessing value in use, the Group uses assumptions that include estimates regarding the discount rates, growth rates and expected changes in selling prices, sales volumes and operating costs, as well as capital expenditures and working capital requirements during the forecasted period. The estimated future cash flows expected to be generated by the asset, when the quoted market prices are not available, are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Discount rates used in the impairment test for goodwill and non-current assets are estimated in nominal terms on the weighted average cost of capital basis. The growth rates are based on the Group’s growth forecasts, which are largely in line with industry trends. Changes in selling prices and direct costs are based on historical experience and expectations of future changes in the market. In determining fair value less costs to sell, the Group uses recent market transactions data and best information available to reflect the amount that it could obtain from the disposal of the asset in an arm’s length transaction (e.g., offers obtained from potential buyers). The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. A long-term growth rate is calculated and applied to project future cash flows after the fifth year. For CGUs involved in mining activity future cash flows include estimates of recoverable minerals that will be obtained from proved and probable reserves, mineral prices (considering current and historical prices, price trends and other related factors), production levels, capital and reclamation costs, all based on the life of mine models prepared by the Group’s engineers. Impairment losses of continuing operations are recognised in the consolidated statement of profit (loss) and other comprehensive income. For impaired assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the consolidated statement of profit (loss) and other comprehensive income unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase. Goodwill is tested for impairment annually as of December 31 and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. |
Cash and cash equivalents | (r) Cash and cash equivalents Cash and cash equivalents in the consolidated statement of financial position comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management. |
Provisions | (s) Provisions General Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, including legal or tax proceedings’ obligations, and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the consolidated statement of profit (loss) and other comprehensive income, net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Rehabilitation provision Mine rehabilitation costs will be incurred by the Group either while operating, or at the end of the operating life of the Group’s facilities and mine properties. The Group assesses its mine rehabilitation provision at each reporting date. The Group recognises a rehabilitation provision where it has a legal and constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of obligation can be made. The nature of these restoration activities includes: dismantling and removing structures; rehabilitating mines and tailings dams; dismantling operating facilities; closing plant and waste sites; and restoring, reclaiming and revegetating affected areas. The obligation generally arises when the asset is installed or the ground/environment is disturbed at the mining operation’s location. When the liability is initially recognised, the present value of the estimated costs is capitalised by increasing the carrying amount of the related mining assets to the extent that it was incurred as a result of the development/construction of the mine. Changes in the estimated timing of rehabilitation or changes to the estimated future costs are dealt with prospectively by recognising an adjustment to the rehabilitation provision and a corresponding adjustment to the asset to which it relates, if the initial estimate was originally recognised as part of an asset measured in accordance with IAS 16 Property, Plant and Equipment Any reduction in the rehabilitation provision and, therefore, any deduction from the asset to which it relates, may not exceed the carrying amount of that asset. If it does, any excess over the carrying value is taken immediately to the consolidated statement of profit (loss) and other comprehensive income. Over time, the discounted liability is increased for the change in present value based on the discount rates that reflect current market assessments and the risks specific to the liability. The periodic unwinding of the discount is recognised in the consolidated statement of profit (loss) and other comprehensive income as part of finance costs. For closed sites, changes to estimated rehabilitation costs are recognised immediately in the consolidated statement of profit (loss) and other comprehensive income. Environmental expenditures and liabilities Environmental expenditures that relate to current or future revenues are expensed or capitalised as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future earnings are expensed. Liabilities for environmental costs are recognised when a clean-up is probable and the associated costs can be reliably estimated. Generally, the timing of recognition of these provisions coincides with the commitment to a formal plan of action or, if earlier, on divestment or on closure of inactive sites. The amount recognised is the best estimate of the expenditure required. Where the liability will not be settled for a number of years, the amount recognised is the present value of the estimated future expenditure. |
Pensions and other post-employment benefits | (t) Pensions and other post-employment benefits Defined benefit pension and other post-retirement plans The Group has a number of defined benefit pension plans and other long-term benefits that cover the majority of production employees. Benefits under these plans are primarily based upon years of service and average earnings. The Group accounts for the cost of defined benefit plans and other long-term benefits using the projected unit credit method. Under this method, the cost of providing pensions is charged to the consolidated statement of profit (loss) and other comprehensive income, so as to attribute the total pension cost over the service lives of employees in accordance with the benefit formula of the plan. The Group’s obligation in respect of defined retirement benefit plans and other long-term benefits is calculated separately for each defined benefit plan and other long-term benefit plan by discounting the amounts of future benefits that employees have already earned through their service in the current and prior periods. The discount rate applied represents the yield at the yearend on highly rated long-term bonds. For defined benefit pension plans, actuarial gains and losses arising from changes in actuarial assumptions are recognised directly in other comprehensive income. For other long-term benefits, actuarial gains and losses arising from changes in actuarial assumptions are recognised in profit or loss. For unfunded plans, the Group recognises a pension liability, which is equal to the projected benefit obligation. For funded plans, the Group offsets the fair value of the plan assets with the projected benefit obligations and recognises the net amount of pension liability. The market value of plan assets is measured at each reporting date. State pension fund The Group’s Russian companies are legally obligated to make defined contributions to the Russian Pension Fund at the rate of 10% from employee’s annual income over RUB 1.15 million and at the rate of 22% from employee’s annual income not exceeding RUB 1.15 million, managed within the framework of the social security scheme of the Russian Federation (a defined contribution plan financed on a pay-as-you-go basis). The Group’s contributions to the Russian Pension Fund relating to defined contribution plans are charged to income in the year, to which they relate and are recognised within social security costs (Note 24.2). |
Treasury shares | (u) Treasury shares Reacquired own equity instruments (treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognised in the additional paid-in capital. |
Significant accounting judgments, estimates and assumptions | (v) Significant accounting judgments, estimates and assumptions The preparation of the consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported carrying amounts of assets and liabilities, and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, and the amounts of revenues and expenses recognised during the reporting period. Estimates and assumptions are continually evaluated and are based on the Group’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Judgments In the process of applying the Group’s accounting policies, management has made the following judgments, which have the most significant effect on the amount recognised in the consolidated financial statements. Railway depreciation method In 2015, the Group commenced to depreciate the railway of the Elga coal deposit using units of production method. In applying the units of production method, depreciation is normally calculated based on produced and delivered tonnes in the period as a percentage of total expected tonnes to be produced and delivered in current and future periods over the Elga coal deposit life cycle. The Group’s analysis has shown that the consumption of the economic benefits of the asset is linked to production and delivery of coal. The Group assesses the total or ultimate railway capacity in tonnes at least at each financial year end and, if expectations differ from previous estimates, the changes will be accounted for as a change in an accounting estimate in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors Principal vs agent arrangements Revenue is recognised when a customer obtains control over the goods or services. Determining the timing of the transfer of control – at a point in time or over time – requires judgement. The Group is engaged into contracts which include transportation and freight services. Under certain agreements, the Group is responsible for providing shipping services after the date at which control over the goods passes to the customer at the loading port or place. Freight and transportation services are required to be accounted for as separate performance obligations with revenue recognised over time as the service is rendered. The Group has concluded that it acts as a principal when it is primarily responsible for fulfilling the promise to provide transportation services and as an agent when it is not primarily responsible for fulfilling the promise to provide transportation services. As a result, for operations when the Group acts as a principal the amounts of transportation costs and freight services, which are included in the transaction price and incurred by the Group in fulfilling its performance obligations shall be recorded as revenue and recognised over time as the obligation is fulfilled. For agent services related to transportation of goods sold, when cost of transportation is included into the goods price, the revenue and selling expenses are recognised on a net basis. Leases The likelihood of extension and termination options being exercised, the separation and estimation of non-lease components of payments, the identification and valuation of in-substance fixed payments, the determination of the incremental borrowing rate relevant in calculating lease liabilities are assessed for recognition of right-of-use assets and lease liabilities. The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The renewable lease contracts that specify an initial period, and renew indefinitely at the end of the initial period unless terminated by either of the parties to the contract are considered enforceable beyond the date on which the contract can be terminated taking into account the broader economics of the contract, and not only contractual termination payments. Lease terms are determined based on the contract terms, production need to lease the specialised asset and terms of rehabilitation obligations. The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Group estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating). Taxation The Group is subject to taxation to the largest extent in Russia, and secondarily in other jurisdictions. The Russian tax, currency and customs legislation is subject to varying interpretations, and changes, which can occur frequently. Management’s interpretation of such legislation as applied to the transactions and activity of the Group may be challenged by the relevant regional and federal authorities. Russian tax authorities take assertive position in its interpretation of the legislation and assessments and as a result, it is possible that transactions and activities that have not been challenged in the past may be challenged. As such, significant additional taxes, penalties and interest may be assessed. Fiscal periods remain open to review by the authorities in respect of the taxes for three calendar years preceding the year of review. Under certain circumstances reviews may cover longer periods. The fact that a year has been reviewed does not close that year, or any tax declaration applicable to that year, from further review during the three-year period. In the event that a taxpayer submits a revised tax declaration for a period of more than three years in which the stated amount of tax is less than the amount previously declared, tax audit of a taxpayer may be performed, but only with the respect to the changes in the tax declaration. In other tax jurisdictions where the Group conducts operations or holds shares, taxes are generally charged on their worldwide income. In the most jurisdictions agreements to avoid double taxation were signed with other jurisdictions; however, the risk of additional taxation exists, especially in respect of certain domiciles where some of the Group entities are located. The Russian transfer pricing legislation, which came into force on January 1, 2012, allows the Russian tax authority to apply transfer pricing adjustments and impose additional profits tax liabilities in respect of all “controlled” transactions if the transaction price differs from the market level of prices. The list of “controlled” transactions includes transactions performed with related parties and certain types of cross-border transactions. For domestic transactions the transfer pricing rules apply only if taxpayers satisfy certain criteria and the amount of all transaction with related party exceeds RUB 1,000 million since 2019. In order to support the level of prices applied for the “controlled” transactions the Group should provide evidence that prices of “controlled” transactions are based on market prices and to prepare the reports for submission to the Russian tax authorities. Otherwise, the Russian tax authorities have the right to challenge the prices determined by the Group for such transactions and to charge additional taxes, penalties and fines. In cases where the domestic transaction resulted in an accrual of additional tax liabilities for one party, another party could correspondingly adjust its profit tax liabilities according to the special notification issued by the authorised body in due course. Special transfer pricing rules apply to transactions with securities and derivatives. The Group believes that it uses the market prices in “controlled” transactions and does not expect any claims of tax authorities related to the prices used in such transactions. However, due to the uncertainty and limited practice of the Russian legislation in the area of transfer pricing relevant tax claims may be raised and the respective effect is currently impossible to estimate. In addition, in 2014, the legislation of the Russian Federation has been significantly revised in order to prevent the misuse of low-tax jurisdictions for tax avoidance in the Russian Federation. Changes in the legislation set out the rules for the taxation of income of a foreign organization recognised as a controlled foreign corporation. The foreign organization is recognised as a controlled foreign corporation, if it is not a tax resident of the Russian Federation and the share of the controlling Russian entities or individuals in the organization is more than 25% (in some cases, more than 10%). Starting from the calculation of the profits of controlled foreign corporation for 2017 and beyond, the amount of non-taxable income of 10 million Russian rubles is established. The Russian tax law also provides for certain conditions under which the income of controlled corporations qualifies as tax exempt. The taxable income of the controlling party is increased by the profits of the controlled foreign corporation earned in the financial year ended prior to the reporting year. Provision for legal claims The Group is subject to various other lawsuits, claims and proceedings related to matters incidental to the Group’s business, licenses, tax positions. Accruals for probable cash outflows have been made based on an assessment of a combination of litigation and settlement strategies. It is possible that results of operations in any future period could be materially affected by changes in assumptions or by the actual effectiveness of such strategies. Environmental contingencies In the course of the Group’s operations, the Group may be subject to environmental claims and legal proceedings. The quantification of environmental exposures requires an assessment of many factors, including changing laws and regulations, improvements in environmental technologies, the quality of information available related to specific sites, the assessment stage of each site investigation, preliminary findings and the length of time involved in remediation or settlement. Management does not believe that any pending environmental claims or proceedings will have a material adverse effect on the Group’s financial position and results of operations. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below or in the related accounting policy note. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market change or circumstances arising beyond the control of the Group. In particular, the Group has identified a number of areas where significant estimates and assumptions are required. Further information on each of these areas and how they impact the various accounting policies are described with the associated accounting policy note within the related qualitative and quantitative note as described below. Deferred tax assets Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits and the existence of taxable temporary differences (Note 19). Various factors are considered to assess the probability of the future utilization of deferred tax assets for individual subsidiaries and for the consolidated group of taxpayers, including past operating results, operational plans for not longer than five years as this term is considered reliable and accurate for forecast, same assumptions for operational plans as used for determination of the expected future cash flows from the cash generating units, financial plans based on historical data and expectation built on the debt portfolio, terms of the expiration of tax losses carried forward depending on respective tax legislation, and tax planning strategies based on changes in tax regulation for tax losses offsetting for 2018-2020. If actual results differ from these estimates or if these estimates must be adjusted in future periods, the Group’s financial position, results of operations and cash flows may be affected. In the event that the assessment of future utilization of deferred tax assets must be changed, this effect is recognised in the consolidated statement of profit (loss) and other comprehensive income. The carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to reflect the likelihood that the estimated taxable profit and taxable temporary differences will be sufficient to recover the asset in whole or in part. Uncertain tax positions The Group determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments and uses the approach that better predicts the resolution of the uncertainty. The Group applies significant judgement in identifying uncertainties over income tax treatments, and where uncertainty exists, the Group records tax liabilities based on its best estimate of the probable outflow of resources embodying economic benefits, which are required to settle these liabilities. Impairment of property, plant and equipment and other non-current assets The Group assesses at each reporting date whether there is any indication that an asset may be impaired. If any such indication exists, the Group makes an estimate of the asset’s recoverable amount. Impairment exists when the carrying value of an asset or CGU exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length for similar assets or observable market prices less incremental costs for disposing of the asset. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the assets. Impairment is based on a large number of factors, such as changes in current competitive conditions, expectations of growth in the industry, changes in cost of capital, changes in the future availability of financing, technological obsolescence, and other changes in circumstances that indicate that impairment exists. The determination of the recoverable amount of a cash-generating cash-generating Impairment of goodwill The Group determines whether goodwill is impaired at least on an annual basis and when circumstances indicate that the carrying value may be impaired. This requires an estimation of the value in use of the cash generating units to which the goodwill is allocated. Estimating the value in use requires the Group to make an estimate of the expected future cash flows from the cash-generating unit including assumptions related to sales and extraction volumes, selling prices and also to choose a suitable discount rate in order to calculate the present value of those cash flows. More details of the assumptions used in estimating the value in use of the cash-generating units to which goodwill is allocated are provided in Note 17. Useful lives of items of property, plant and equipment The Group assesses the remaining useful lives of items of property, plant and equipment at least at each financial year end and, if expectations differ from previous estimates, the changes are accounted for as a change in an accounting estimate in accordance with IAS 8. These estimates may have a material impact on the amount of the carrying values of property, plant and equipment and on depreciation expense for the period. Mineral reserves Mineral reserves and the associated mine plans are a material factor in the Group’s computation of amortisation charge proportional to the depletion. Estimation of reserves involves some degree of uncertainty. The uncertainty depends mainly on the amount of reliable geological and engineering data available at the time of the estimate and the interpretation of this data, which also requires use of subjective judgment and development of assumptions. Mine plans are periodically updated which can have a material impact on the amortisation charge proportional to the depletion for the period. More details are provided in Note 3(i). Provisions The outcomes of various legal proceedings, disputes and claims to the Group are subject to significant uncertainty. Management evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. Unanticipated events or changes in these factors may require the Group to increase or decrease the amount recorded or to be recorded for a matter that has not been previously recorded because it was not considered probable (Note 22). Pensions and other post-employment benefits The cost of defined benefit pension plans and other post-employment benefits and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions which may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and its long-term nature, a defined benefit obligation and other long-term benefit plans are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. More details are provided in Note 21. Rehabilitation provisions The Group reviews rehabilitation provisions at each reporting date and adjusts them to reflect the current best estimate. Rehabilitation provisions are recognised in the period in which they arise and are stated at the best estimate of the present value of estimated future costs. These estimates require extensive judgment about the nature, cost and timing of the work to be completed, and may change with future changes to costs, environmental laws and regulations and remediation practices. The Group applies a suitable discount rate in order to calculate the present value of the estimated future costs, depending on their timing. The terms of rehabilitation works are linked to the termination of extraction phase, use of assets or regulatory requirements and vary significantly for different assets. These estimates, including the methodologies used, may have a material impact on the amount of rehabilitation provision. Changes in the estimated timing of rehabilitation or changes to the estimated future costs are dealt with prospectively by recognising an adjustment to the rehabilitation provision and a corresponding adjustment to the asset to which it relates, if the initial estimate was originally recognised as part of an asset measured in accordance with IAS 16 (Note 15). Impairment of financial assets The Group makes allowances for expected credit losses resulting from the expected inability of customers to make required payments. When evaluating the adequacy of an allowance for expected credit losses management bases its estimates on the current overall economic conditions, the ageing of accounts receivable balances, historical write-off experience, debtor creditworthiness and changes in payment terms. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The Group’s historical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual default in the future (Note 12). Determining net realisable value of inventories The Group makes write-downs for obsolete and slow-moving raw materials and spare parts. In addition, finished goods of the Group are carried at net realisable value (Note 11). Estimates of net realisable value of finished goods are based on the most reliable evidence available at the time the estimates are made. These estimates take into consideration fluctuations of price or cost directly relating to events occurring subsequent to the end of the reporting period to the extent that such events confirm conditions existing at the end of the period. For other judgments, estimates and assumptions and details refer to: • Mineral licenses (Note 3(i)); • Property, plant and equipment (Note 3(j)); • Deferred tax assets (Note 3(f)); • Non-current assets held for sale and discontinued operations (Note 3(h)); • Inventories (Note 3(p)); • Impairment of non-current assets (Note 3(q)); • Pensions and other post-employment benefits (Note 3(t)); • Provisions (Note 3(s)); • Fair value measurement (Note 3(d)). |
Reclassifications and rounding | (w) Reclassifications and rounding Certain reclassifications have been made to the prior periods’ consolidated financial statements to conform to the current year presentation. Such reclassifications affect the presentation of certain items in the consolidated statement of financial position, consolidated statement of profit (loss) and other comprehensive income, consolidated statement of cash flows and notes to the consolidated financial statements and have no impact on net income or equity. All amounts disclosed in these consolidated financial statements and notes have been rounded to the nearest millions of Russian rubles units unless otherwise stated. |
New and amended standards and interpretations adopted by the Group | (x) New and amended standards and interpretations adopted by the Group The Group applied for the first time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2019. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. The nature and the effect of these changes are described below. The Group applied for the first time IFRS 16 Leases (“IFRS 16”). Several other amendments and interpretations apply for the first time in 2019, but do not have an impact on the consolidated financial statements of the Group. IFRS 16 Leases IFRS 16 was issued in January 2016 and it replaces IAS 17 Leases Determining whether an Arrangement Contains a Lease Operating Leases – Incentives Evaluating the Substance of Transactions Involving the Legal Form of a Lease ‘low-value’ Lessees are also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee should generally recognise the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. Lessor’s accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases. The Group applied IFRS 16 from January 1, 2019 retrospectively with a cumulative effect recognised at the date of initial application. The Group has applied the standard to contracts that were previously identified as leases applying IAS 17 and IFRIC 4. The right-of use assets were measured at the amount equal to the lease liability adjusted for the amount of any prepaid or accrued lease payments relating to that lease recognised in the balance sheet as of December 31, 2018. The Group did not change the initial carrying amounts of recognised assets and liabilities at the date of initial application for leases previously classified as finance leases, that is the right-of-use assets and lease liabilities equal to the lease assets and liabilities recognised under IAS 17. The Group has used the exemptions proposed by the standard on lease contracts for which the lease terms ends within 12 months as of the date of initial application. The lease payments associated with those leases will be recognised as an expense on a straight-line basis over the lease term. Also, the Group has used the following practical expedient: direct costs are excluded from the measurement of the right-of-use asset at the date of initial application. In previous years, the majority of the Group’s outstanding short-term and long-term lease contracts were cancellable. IAS 17 requires disclosing operating lease commitments for non-cancellable leases only, while under IFRS 16, the Group is also required to include in lease liabilities the payments relating to the term periods covered by an option to terminate the lease if the lessee is reasonably certain not exercise that option. The impact on the consolidated statement of financial position (increase/(decrease)) as of January 1, 2019 is presented in the table below: Millions of Assets Property, plant and equipment (right-of-use assets) (Note 15) 2,698 Deferred tax assets 28 Total assets 2,726 Liabilities Non-current lease liabilities 3,125 Current lease liabilities 134 Total liabilities 3,259 Net impact on equity (533 ) The net impact on equity is attributable to the impairment of right-of-use assets at cash-generating units (CGU) for which impairment of non-current assets was identified and recognised as of December 31, 2018. On adoption of IFRS 16, the Group has recognised lease liabilities in relation to leases which had previously been classified as operating leases under the principles of IAS 17. These liabilities were measured at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate as of January 1, 2019. The lease liabilities as of January 1, 2019 can be reconciled to the operating lease commitments as of December 31, 2018 as follows: Millions of Operating lease commitments of RUB 7,513 million (total rentals payable of RUB 60,911 million excluding leases to explore or use mineral deposits of RUB 53,398 million) 2,647 Reclassification from finance lease liabilities 8,293 Commitments relating to short-term leases (73 ) Adjustments as a result of a different treatment of extension and termination options, net 685 Lease liabilities as of January 1, 2019 11,552 From the date of initial application of IFRS 16 (refer to Note 3 (k)), the right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities and recognised within property, plant and equipment. The majority of right-of-use assets are represented by land and transportation vehicles. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. The Group will continue to use practical expedients which were applied by the Group at the date of initial application of the new standard, whereas the direct costs will be included in the measurement of the right-of-use asset at the commencement date after initial application. The depreciation on right-of-use assets is recognised within cost of sales, selling and distribution expenses, administrative and other expenses based on the function of the related asset. The interest expense on lease liabilities is recognised within finance costs. Other amended standards The following amended standards became effective from 1 January 2019, but did not have any material impact on the consolidated financial statements of the Group: • IFRIC 23 Uncertainty over Income Tax Treatments • Amendments to IAS 19 — Plan Amendment, Curtailment or Settlement • Amendments to IAS 28 — Long-term Interests in Associates and Joint Ventures • Annual Improvements to IFRSs 2015-2017 cycle amendments to IFRS 3 Business Combinations Joint Arrangements Income Taxes Borrowing Costs Standards issued but not effective The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are discussed below. The Group intends to adopt these standards and amendments, if applicable, when they become effective. The following other new pronouncements are not expected to have any material impact on the Group’s consolidated financial statements: • Amendments to IFRS 3 — Definition of a Business • Amendments to IAS 1 and IAS 8 — Definition of Material • Amendments to IFRS 9, IAS 39 and IFRS 7 — Interest Rate Benchmark Reform • Amendments to IAS 1 — Classification of Liabilities as Current or Non-current |
Corporate information (Tables)
Corporate information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Corporate Information | Set forth below is a summary of the Group’s primary subsidiaries: Name of subsidiary Registered in Core business Date control Interest in voting stock held Southern Kuzbass Coal Company (SKCC) Russia Coal mining January 1999 99.1 % Chelyabinsk Metallurgical Plant (CMP) Russia Steel products December 2001 94.2 % Vyartsilya Metal Products Plant (VMPP) Russia Steel products May 2002 93.3 % Beloretsk Metallurgical Plant (BMP) Russia Steel products June 2002 94.8 % Urals Stampings Plant (USP) Russia Steel products April 2003 93.8 % Korshunov Mining Plant (KMP) Russia Iron ore mining October 2003 90.0 % Mechel Nemunas (MN) Lithuania Steel products October 2003 100.0 % Mechel Energo Russia Power sales February 2004 100.0 % Port Posiet Russia Transshipment February 2004 97.8 % Izhstal Russia Steel products May 2004 90.0 % Port Kambarka Russia Transshipment April 2005 90.4 % Mechel Service Russia Trading May 2005 100.0 % Mechel Coke Russia Coke production June 2006 100.0 % Moscow Coke and Gas Plant (Moskoks) Russia Coke production October 2006 99.5 % Southern Kuzbass Power Plant (SKPP) Russia Power generation April 2007 98.3 % Kuzbass Power Sales Company (KPSC) Russia Electricity distribution June 2007 72.1 % Bratsk Ferroalloy Plant (BFP) Russia Ferrosilicon production August 2007 100.0 % Yakutugol Russia Coal mining October 2007 100.0 % Port Temryuk Russia Transshipment March 2008 100.0 % Mechel Carbon AG Switzerland Trading April 2008 100.0 % HBL Holding GmbH (HBL) Germany Trading September 2008 100.0 % Mechel Service Stahlhandel Austria GmbH and its subsidiaries Austria Trading September 2012 100.0 % Elgaugol Russia Coal mining August 2013 51.0 %** Elga-road Russia Railroad transportation January 2016 51.0 %** * Date, when a control interest was acquired or a new company established. ** In 2016, the Group sold 49% stakes in Elgaugol and Elga-road to Gazprombank. Simultaneously with this transaction, the Group granted to Gazprombank a put option to sell 49% stakes in these companies to the Group. The transaction in fact represents a financial liability, and these entities are consolidated based on 100% ownership (Note 10.4). |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Exchange Rates for the Functional and Operating Currencies | The following table presents the exchange rates for the functional and operating currencies at various subsidiaries, other than the presentation currency: Exchange rates* at Average exchange rates* Currency December 31, December 31, December 31, December 31, December 31, U.S. dollar 61.91 69.47 64.74 62.71 58.35 Euro 69.34 79.46 72.50 73.95 65.90 (*) Exchange rates shown in Russian rubles for one currency unit. |
Summary of Useful Lives | The following useful lives are used as a basis for calculating depreciation: Category of asset Useful economic Buildings and constructions 5-85 Operating machinery and equipment 2-30 Transportation vehicles 2-25 Other equipment 2-15 |
Disclosure In Tabular Form Of Estimated Lives Of Right Of Use Assets Estimated Useful Lives | Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets as follows: Category of asset Years Buildings and constructions 2-5 Operating machinery and equipment 5-10 Transportation vehicles 2-22 |
Summary of Impact of IFRS 16 on Consolidated Statemtent of Financial Position | The impact on the consolidated statement of financial position (increase/(decrease)) as of January 1, 2019 is presented in the table below: Millions of Assets Property, plant and equipment (right-of-use 2,698 Deferred tax assets 28 Total assets 2,726 Liabilities Non-current 3,125 Current lease liabilities 134 Total liabilities 3,259 Net impact on equity (533 ) |
Information On Detailed Information About Operating Lease Commitments | The lease liabilities as of January 1, 2019 can be reconciled to the operating lease commitments as of December 31, 2018 as follows: Millions of Operating lease commitments of RUB 7,513 million (total rentals payable of RUB 60,911 million excluding leases to explore or use mineral deposits of RUB 53,398 million) 2,647 Reclassification from finance lease liabilities 8,293 Commitments relating to short-term leases (73 ) Adjustments as a result of a different treatment of extension and termination options, net 685 Lease liabilities as of January 1, 2019 11,552 |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Covenant Ratios under Most Significant Loan Agreements with the Russian State-Controlled Banks | The Group was required to comply with the following ratios under the most significant loan agreements with the Russian state-controlled banks as of December 31, 2019: Restrictive covenants Requirement Actual as of Group’s EBITDA to Net Interest Expense Shall not be less than 2.0:1.0 1.36:1.0 Group’s EBITDA to Consolidated Financial Expense Shall not be less than 2.0:1.0 1.40:1.0 Group’s Net Debt to EBITDA Not exceed 6.0:1.0 8.85:1.0 Group’s Total Debt to EBITDA Not exceed 3.5:1.0 8.51:1.0 Group’s Cash flow from operating activities to EBITDA Shall not be less than 0.8:1.0 1.08:1.0 Group’s EBITDA to Revenue Shall not be less than 0.2:1.0 0.18:1.0 The Group was required to comply with the following ratios under the most significant loan agreements with the Russian state-controlled banks as of December 31, 2018 1 Restrictive covenants Requirement Actual as of Group’s EBITDA to Net Interest Expense Shall not be less than 1.75:1.0 1.79:1.0 Group’s EBITDA to Consolidated Financial Expense Shall not be less than 1.75:1.0 1.82:1.0 Group’s Net Debt to EBITDA Not exceed 6.0:1.0 6.39:1.0 Group’s Total Debt to EBITDA Not exceed 4.5:1.0 6.25:1.0 Group’s Cash flow from operating activities to EBITDA Shall not be less than 0.8:1.0 0.90:1.0 Group’s EBITDA to Revenue Shall not be less than 0.2:1.0 0.24:1.0 1 Detailed information in respect of restrictive covenant calculations is presented in Note 10.1. |
Material partly-owned subsidi_2
Material partly-owned subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Financial Information of Subsidiaries | Summarised statements of profit (loss) and other comprehensive income for 2019: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Revenue from contracts with customers 35,059 24,624 113,020 198 22,061 15,776 17,231 20,208 Cost of sales (21,667 ) (12,479 ) (101,258 ) (54 ) (19,263 ) (6,739 ) (12,330 ) (17,631 ) Total selling, distribution and operating expenses, net (7,264 ) (11,531 ) (11,406 ) (218 ) (1,749 ) (4,439 ) (1,157 ) 919 Total other income and (expense), net (233 ) 209 4,173 235 41 1,831 1,633 (99 ) Profit before tax 5,895 823 4,529 161 1,090 6,429 5,377 3,397 Income tax (expense) benefit (372 ) (174 ) (551 ) (37 ) (28 ) (271 ) (323 ) 97 Profit for the period 5,523 649 3,978 124 1,062 6,158 5,054 3,494 Total comprehensive income 5,523 649 3,978 124 1,062 6,158 5,054 3,494 Attributable to non-controlling interests 79 182 231 20 91 613 315 348 Dividends paid to non-controlling interests — — — — — — — — Summarised statements of profit (loss) and other comprehensive income for 2018: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Revenue from contracts with customers 32,251 24,084 124,372 88 25,899 9,989 16,549 21,173 Cost of sales (18,123 ) (12,077 ) (101,829 ) (47 ) (24,095 ) (6,222 ) (13,131 ) (19,392 ) Total selling, distribution and operating expenses, net (9,064 ) (11,894 ) (11,988 ) (170 ) (1,867 ) (4,250 ) (1,099 ) (2,498 ) Total other income and (expense), net (4,514 ) 343 (5,114 ) 722 1,034 2,103 2,090 (1,097 ) Profit (loss) before tax 550 456 5,441 593 971 1,620 4,409 (1,814 ) Income tax (expense) benefit (1,707 ) (94 ) 1,443 (115 ) (34 ) 46 (109 ) 228 (Loss) profit for the period (1,157 ) 362 6,884 478 937 1,666 4,300 (1,586 ) Total comprehensive (loss) income (1,157 ) 362 6,884 478 937 1,666 4,300 (1,586 ) Attributable to non-controlling interests 12 101 345 76 83 166 269 (154 ) Dividends paid to non-controlling interests — — — — — — — — Summarised statements of profit (loss) and other comprehensive income for 2017: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Revenue from contracts with customers 31,993 22,418 118,557 102 24,206 11,492 12,725 18,696 Cost of sales (18,173 ) (10,754 ) (102,398 ) (24 ) (21,464 ) (6,136 ) (10,089 ) (16,199 ) Total selling, distribution and operating expenses, net (7,844 ) (11,182 ) (11,894 ) (184 ) (1,634 ) (5,576 ) (909 ) (3,486 ) Total other income and (expense), net 12,769 340 (506 ) 531 379 2,913 1,382 (906 ) Profit (loss) before tax 18,745 822 3,759 425 1,487 2,693 3,109 (1,895 ) Income tax (expense) benefit (718 ) (170 ) 544 (85 ) (91 ) 212 (144 ) 194 Profit (loss) for the period 18,027 652 4,303 340 1,396 2,905 2,965 (1,701 ) Total comprehensive income (loss) 18,027 652 4,303 340 1,396 2,905 2,965 (1,701 ) Attributable to non-controlling interests 103 182 256 54 114 281 183 (170 ) Dividends paid to non-controlling interests 198 — — — — — — — Summarised statements of financial position as of December 31, 2019: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Current assets 74,924 4,373 46,448 3,301 14,127 20,413 15,374 4,049 Non-current assets 61,772 4,316 170,004 4,556 3,651 23,484 19,942 4,405 Current liabilities (135,625 ) (2,727 ) (177,585 ) (93 ) (5,308 ) (3,001 ) (5,504 ) (10,153 ) Non-current liabilities (6,626 ) (176 ) (2,757 ) (610 ) (261 ) (1,098 ) (422 ) (2,634 ) Total equity 5,555 (5,786 ) (36,110 ) (7,154 ) (12,209 ) (39,798 ) (29,390 ) 4,333 Attributable to: Equity shareholders of Mechel PAO 5,828 (4,176 ) (34,021 ) (6,019 ) (11,156 ) (35,836 ) (27,565 ) 3,908 Non-controlling interests (273 ) (1,610 ) (2,089 ) (1,135 ) (1,053 ) (3,962 ) (1,825 ) 425 Summarised statements of financial position as of December 31, 2018: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Current assets 49,771 3,735 38,571 1,507 9,594 13,863 10,217 5,171 Non-current assets 81,868 4,187 174,639 6,201 6,442 23,221 19,139 1,803 Current liabilities (101,714 ) (2,757 ) (176,114 ) (108 ) (4,751 ) (2,336 ) (4,870 ) (12,765 ) Non-current liabilities (40,888 ) (31 ) (4,921 ) (204 ) (141 ) (917 ) (137 ) (1,987 ) Total equity 10,963 (5,134 ) (32,175 ) (7,396 ) (11,144 ) (33,831 ) (24,349 ) 7,778 Attributable to: Equity shareholders of Mechel PAO 11,157 (3,706 ) (30,314 ) (6,223 ) (10,182 ) (30,462 ) (22,837 ) 7,010 Non-controlling interests (194 ) (1,428 ) (1,861 ) (1,173 ) (962 ) (3,369 ) (1,512 ) 768 Summarised cash flow information for the year ended December 31, 2019: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Operating 12,043 243 10,898 (146 ) (2,482 ) 2,867 1,375 2,839 Investing (950 ) (58 ) (3,522 ) 163 2,685 (2,627 ) (912 ) (72 ) Financing (10,945 ) (245 ) (7,108 ) (17 ) 505 (240 ) (199 ) (2,741 ) Increase (decrease) in cash and cash equivalents, net 148 (60 ) 268 — 708 — 264 26 Summarised cash flow information for the year ended December 31, 2018: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Operating 13,152 193 13,015 (264 ) (1,891 ) 1,325 3,950 1,647 Investing 547 (97 ) (76,283 ) 264 1,870 (1,003 ) (1,163 ) (89 ) Financing (13,651 ) (99 ) 63,200 — (169 ) (322 ) (2,829 ) (1,604 ) Increase (decrease) in cash and cash equivalents, net 48 (3 ) (68 ) — (190 ) — (42 ) (46 ) Summarised cash flow information for the year ended December 31, 2017: SKCC and KPSC CMP SUNP BMP KMP USP Izhstal Operating 3,434 112 8,036 (211 ) (1,221 ) 500 560 751 Investing 8,008 (38 ) (2,950 ) 210 1,477 (329 ) 949 73 Financing (11,445 ) (45 ) (4,826 ) — (323 ) (172 ) (1,590 ) (755 ) (Decrease) increase in cash and cash equivalents, net (3 ) 29 260 (1 ) (67 ) (1 ) (81 ) 69 |
Subsidiaries with Material Non-controlling Interests [Member] | |
Statement [LineItems] | |
Summary of Financial Information of Subsidiaries | Proportion of equity interest held by non-controlling interests: Name At December 31, At December 31, SKCC and subsidiaries* 0.9 % 0.9 % Kuzbass Power Sales Company (KPSC) 27.9 % 27.9 % Chelyabinsk Metallurgical Plant (CMP) 5.8 % 5.8 % Southern Urals Nickel Plant (SUNP) 15.9 % 15.9 % Beloretsk Metallurgical Plant (BMP) 8.6 % 8.6 % Korshunov Mining Plant (KMP) 10.0 % 10.0 % Urals Stampings Plant (USP) 6.2 % 6.2 % Izhstal 10.0 % 10.0 % * Hereinafter SKCC and subsidiaries are represented by Southern Kuzbass Coal Company (SKCC), Tomusinsky Open Pit Mine (TOPM), Tomusinsky Energoupravlenie. |
Investments in associates (Tabl
Investments in associates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments accounted for using equity method [abstract] | |
Summary of Investments in Associates | Investments in associates comprised of: Percent of shares held at Investment carrying value at Investee December 31, December 31, December 31, December 31, TPTU (Mining segment) 40 % 40 % 208 189 TRMZ (Mining segment) 25 % 25 % 113 104 Total investments in associates 321 293 |
Summary of Movements in the Investments | The following table shows movements in the investments in associates TPTU TRMZ Total December 31, 2016 175 90 265 Share of profit 9 9 18 December 31, 2017 184 99 283 Share of profit 5 5 10 December 31, 2018 189 104 293 Share of profit 19 9 28 December 31, 2019 208 113 321 |
Related party disclosures (Tabl
Related party disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Transactions with Related Parties | The following table provides the total amount of transactions that have been entered into with the related parties in 2019, 2018 and 2017. 2019 2018 2017 Purchases Sales Other loss Purchases Sales Other loss Purchases Sales Other loss Associates 110 98 — 121 103 (33 ) 230 134 (6 ) Controlling shareholders and entities under control of the Group’s Controlling shareholders 904 184 138 280 52 (9 ) 267 50 (33 ) Total 1,014 282 138 401 155 (42 ) 497 184 (39 ) |
Summary of Settlement with Related Parties | As of December 31, 2019 and 2018, the Group had the following balances in settlement with related parties: December 31, 2019 December 31, 2018 Financial Financial Total Financial Financial Total Associates 7 (6 ) 1 7 (13 ) (6 ) Controlling shareholders and entities under control of the Group’s Controlling shareholders 100 (963 ) (863 ) 50 (500 ) (450 ) Total 107 (969 ) (862 ) 57 (513 ) (456 ) |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Comparison By Class of Carrying Amount and Fair Value of Group Financial Instruments | Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial liabilities that are carried in the consolidated financial statements: December 31, 2019 December 31, 2018 Level Carrying Fair Carrying Fair Financial liabilities measured at amortised cost Floating rate loans and borrowings 2 370,312 357,276 384,608 356,444 Bonds 1 6,483 6,534 11,195 10,876 Fixed rate loans and borrowings 2 11,727 11,169 23,029 21,852 Other non-current 2 48, 3 46, 2 44,510 40,528 Total 436, 8 421, 1 463,342 429,700 |
Financial assets and financia_2
Financial assets and financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
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, 2019 December 31, 2018 Interest Amount of Interest Amount of In Russian rubles Banks and financial institutions 7.8 1,347 9.3-9.6 3,634 Corporate lenders — — 6.7 10 Weighted average interest rate for the period 7.8 9.4 In euro Banks and financial institutions 1.7-1.9 524 1.3-2.8 580 Corporate lenders — — 3.0 22 Weighted average interest rate for the period 1.9 1.5 Current portion of long-term debt — 368,335 — 398,171 Interest payable — 9,014 — 7,749 Fines and penalties on overdue amounts — 2,097 — 2,128 Total short-term borrowings and current portion of long-term 381,317 412,294 Long-term debt December 31, 2019 December 31, 2018 Interest Amount of Interest Amount of In Russian rubles Banks and financial institutions 1.0-9.8 239,659 5.0-10.0 242,499 Bonds issue 8.0-11.9 6,370 8.0-12.3 10,979 Corporate lenders 9.3 43 6.7 73 Weighted average interest rate for the period 7.9 9.3 In U.S. dollars Banks and financial institutions 3.2-9.0 44,725 3.9-9.9 54,719 Corporate lenders — — 3.0 138 Weighted average interest rate for the period 8.4 8.6 In euro Banks and financial institutions 0.8-7.0 84,743 0.8-7.0 96,301 Weighted average interest rate for the period 4.8 4.8 Current part of long-term loans and borrowings (368,335 ) (398,171 ) Total long-term debt 7,205 6,538 |
Scheduled Maturities of the Debt Outstanding | Aggregate scheduled maturities of the debt outstanding as of December 31, 2019 were as follows: Payable by On demand 373,705 2020 (current portion) 7,612 2021 4,829 2022 2,292 2023 14 2024 49 Thereafter 21 Total 388,522 |
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, 2019 and 2018 were as follows: Short-term and long-term debt December 31, December 31, Russian ruble-denominated Gazprombank 139,971 142,635 VTB 99,411 73,416 Sberbank — 25,723 Bonds 6,370 10,979 Eximbank of Russia — 3,305 Other 1,667 1,137 Total 247,419 257,195 U.S. dollar-denominated VTB 27,256 7,573 BNP 9,587 10,759 VEB 7,000 8,794 Sberbank — 23,147 MCB 676 4,037 Pre-export facility — 7 Other 206 540 Total 44,725 54,857 Euro-denominated VTB 66,145 74,794 BNP 13,793 15,752 ING Bank 2,221 2,541 NatWest Markets 1,352 1,549 Commerzbank — 1,317 Deutsche Bank AG. 1,150 — Other 606 950 Total 85,267 96,903 Total short-term and long-term debt 377,411 408,955 |
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-controlled banks as of December 31, 2019 4 Restrictive covenants Requirement Actual as of Group’s EBITDA to Net Interest Expense Shall not be less than 2.0:1.0 1.36:1.0 Group’s EBITDA to Consolidated Financial Expense Shall not be less than 2.0:1.0 1.40:1.0 Group’s Net Debt to EBITDA Shall not exceed 6.0:1.0 8.85:1.0 Group’s Total Debt to EBITDA Shall not exceed 3.5:1.0 8.51:1.0 Group’s Cash flow from operating activities to EBITDA Shall not be less than 0.8:1.0 1.08:1.0 Group’s EBITDA to Revenue Shall not be less than 0.2:1.0 0.18:1.0 |
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 More than More than More than More than Total At December 31, 2019 Loans and borrowings, including interest payable 373,799 7,998 5,024 2,325 14 70 389,230 Lease liabilities 8,802 3,992 3,122 1,230 643 12,515 30,304 Trade and other payables 20,210 14,642 — — — — 34,852 Other financial liabilities — — 54,450 38 38 19 54,545 Maturity On demand Within More than More than More than More than Total At December 31, 2018 Loans and borrowings, including interest payable 406,337 7,185 4,520 2,550 16 119 420,727 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 |
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, December 31, Restricted cash (excluding cash on hand) 147 51 Cash deposits 1,074 494 Trade and other receivables 15,442 17,718 Other financial assets 382 533 — Promissory notes — 212 — Loans issued 368 305 — Bonds 14 16 Total 17,045 18,796 |
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, December 31, Current assets 639 157 Trade and other receivables 172 27 Cash and cash equivalents 467 130 Non-current liabilities (4,667 ) — Loans and borrowings (4,667 ) — Current liabilities (41,047 ) (54,954 ) Loans and borrowings (38,861 ) (51,732 ) Trade and other payables (2,186 ) (3,222 ) Assets and liabilities denominated in euro December 31, December 31, Current assets 171 812 Trade and other receivables 63 510 Cash and cash equivalents 108 302 Non-current liabilities (148 ) (219 ) Lease liabilities (148 ) (219 ) Current liabilities (88,794 ) (101,294 ) Loans and borrowings (86,213 ) (98,285 ) Trade and other payables (2,499 ) (2,953 ) Lease liabilities (82 ) (56 ) |
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 Effect before tax Change in Effect before tax 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 2019 +13 % (5,860 ) +13 % (11,540 ) -11 % 4,958 -11 % 9,765 |
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 Effect before tax Increase/ Effect before tax Increase/ Effect before tax 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 2019 +1.25 % (3,116 ) +0.35 % (145 ) +0.15 % (126 ) -1.25 % 3,116 -0.35 % 145 -0.15 % 126 |
Disclosure Of Detailed Information About Right Of Use Assets Movement Explanatory [Text Block] | Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period: Land Buildings Operating Transportation Total At January 1, 2019 — — 643 9,469 10,112 Adjustment on initial application of IFRS 16 1,932 681 73 12 2,698 Additions 200 541 405 7,401 8,547 Depreciation charge (72 ) (138 ) (204 ) (2,587 ) (3,001 ) Disposals (9 ) — (6 ) (2 ) (17 ) Impairment (72 ) — (19 ) (363 ) (454 ) Transfer to own property, plant and equipment — — (114 ) (1 ) (115 ) Exchange differences (1 ) (23 ) (15 ) (3 ) (42 ) At December, 31 2019 1,978 1,061 763 13,926 17,728 |
Disclosure Of Cash Flow Relating To Leases | The following amounts related to the lease were recognised for the reporting period: 2019 The maturity analysis of lease liabilities Note 10.2 The cash flow effect of sale and leaseback transactions (net increase, consolidated statement of cash flows) 248 Interest expense on lease liabilities (Note 24.4) 1,409 Expense relating to short-term leases 1,536 Commitments for short-term leases as of December 31 62 The total cash outflow for leases 5,404 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Inventories | December 31, December 31, Raw materials 13,643 14,980 Work in progress 8,565 8,681 Finished goods and goods for resale 17,565 19,762 Total inventories at the lower of cost and net realisable value 39,773 43,423 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Trade and Other Receivables | December 31, December 31, Trade receivables, including from contracts with 21,262 24,039 — domestic customers 18,251 19,037 — foreign customers 3,011 5,002 Less allowance for expected credit losses on trade receivables (6,200 ) (6,749 ) Total trade receivables, net 15,062 17,290 Other receivables 2,933 3,410 Less allowance for expected credit losses on other receivables (2,655 ) (3,088 ) Total other receivables, net 278 322 Total accounts receivable, net 15,340 17,612 |
Summary of Credit Risk Exposure on Trade Receivables | December 31, 2019 December 31, 2018 Trade Expected credit Trade Expected credit Current 11,907 (169 ) 14,734 (659 ) =<30 days 2,154 (59 ) 2,178 (106 ) 31-60 days 504 (99 ) 497 (62 ) 61-90 355 (126 ) 199 (57 ) 91-180 444 (134 ) 334 (142 ) 181-365 659 (565 ) 579 (377 ) >1 year 5,239 (5,048 ) 5,518 (5,346 ) Total trade receivables 21,262 (6,200 ) 24,039 (6,749 ) |
Summary of Movements in Allowance for Expected Credit Losses on Trade and Other Receivables | The movements in the allowance for expected credit losses on trade and other receivables were as follows: Total At December 31, 2016 (33,941 ) Charge for the year (343 ) Utilised amounts 603 Reclassified to non-current 24,391 Exchange rate difference 207 At December 31, 2017 (9,083 ) Charge for the year (791 ) Utilised amounts 575 Exchange rate difference (538 ) At December 31, 2018 (9,837 ) Charge for the year (226 ) Utilised amounts 800 Exchange rate difference 408 At December 31, 2019 (8,855 ) |
Other current and non-current_2
Other current and non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Current and Non-Current Assets [Member] | |
Statement [LineItems] | |
Schedule of Other Current and Non-Current Assets | December 31, December 31, Other current assets Prepayments and advances 2,930 4,778 Input VAT and other taxes recoverable 3,970 3,758 Other current assets 82 137 Total prepayments and other current assets 6,982 8,673 December 31, December 31, Other non-current Deferred assets from sale and lease back 208 241 Other non-current 345 389 Total other non-current 553 630 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Cash and Cash Equivalents | December 31, December 31, Cash on hand 6 8 Cash at banks, including — in Russian rubles 1,715 360 — in U.S. dollars 1,081 766 — in euro 640 596 — in other currencies 160 164 Total cash and cash equivalents 3,602 1,894 Less allowance for expected credit losses (93 ) (91 ) Total cash and cash equivalents, net 3,509 1,803 |
Reconciliation Between the Changes in Liabilities Arising from Financing Activities | Reconciliation between the changes in liabilities arising from financing activities including both changes arising from cash flows and non-cash changes: Loans and Lease Deferred Effect of Put option of Other Deferred At December 31, 2016 445,809 10,596 1,052 — 36,198 — 8,032 Cash flows (42,480 ) (4,801 ) (455 ) — — — (3,652 ) Foreign exchange movement (3,942 ) (67 ) — — — — (370 ) Changes in fair value — — — — — (81 ) — Other changes, including interest 40,506 3,626 1,083 — 4,062 815 — At December 31, 2017 439,893 9,354 1,680 — 40,260 734 4,010 Cash flows (52,951 ) (3,892 ) (629 ) — — (442 ) (3,968 ) Foreign exchange movement 24,167 83 — — — — 339 Changes in fair value — — — — — (292 ) — Other changes, including interest 7,723 2,748 379 — 3,796 — — At December 31, 2018 418,832 8,293 1,430 — 44,056 — 381 Cash flows (42,831 ) (3,488 ) (341 ) 234 — — (361 ) Foreign exchange movement (17,636 ) (38 ) — — — — (20 ) Other changes, including interest 30,157 12,588 62 14 4,145 — — At December 31, 2019 388,522 17,355 1,151 248 48,201 — — |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | Land Buildings and Operating Trans- Other Construction- Mining Railway Ulak-Elga Total Cost At December 31, 2016 3,049 77,659 114,328 29,291 822 21,134 15,100 74,791 336,174 Additions 6 363 1,531 3,124 45 5,767 1,576 — 12,412 Change in rehabilitation provision — 141 — — — — (58 ) — 83 Transfers — 2,934 3,360 190 148 (7,011 ) 362 17 — Disposals (12 ) (432 ) (1,713 ) (1,795 ) (28 ) (245 ) (3 ) — (4,228 ) Exchange differences 52 148 132 21 9 — — — 362 At December 31, 2017 3,095 80,813 117,638 30,831 996 19,645 16,977 74,808 344,803 Additions 9 10 2,423 2,048 83 6,851 50 — 11,474 Change in rehabilitation provision — (187 ) — — — — (102 ) — (289 ) Transfers 1 487 2,750 251 97 (4,099 ) 119 394 — Disposals (255 ) (649 ) (1,734 ) (1,410 ) (32 ) (509 ) (136 ) — (4,725 ) Exchange differences 91 277 251 40 28 — — — 687 At December 31, 2018 2,941 80,751 121,328 31,760 1,172 21,888 16,908 75,202 351,950 Adjustment on initial application of IFRS16 2,488 686 73 12 — — — — 3,259 Additions 200 568 1,585 7,683 33 7,332 38 — 17,439 Change in rehabilitation provision — 456 — — — — 707 — 1,163 Transfers (9 ) 2,606 3,176 262 21 (6,752 ) (26 ) 722 — Disposals (36 ) (241 ) (2,415 ) (2,159 ) (33 ) (990 ) — — (5,874 ) Exchange differences (86 ) (289 ) (240 ) (37 ) (30 ) (2 ) — — (684 ) At December 31, 2019 5,498 84,537 123,507 37,521 1,163 21,476 17,627 75,924 367,253 Depreciation and impairment At December 31, 2016 (251 ) (35,905 ) (72,899 ) (16,769 ) (733 ) (1,582 ) (3,101 ) (581 ) (131,821 ) Depreciation charge — (3,747 ) (7,315 ) (2,222 ) (72 ) — (245 ) (235 ) (13,836 ) Disposals — 302 1,611 1,720 22 127 1 7 3,790 Reversal of impairment/ (impairment) (37 ) (876 ) (2,174 ) (454 ) (5 ) (278 ) (1,067 ) — (4,891 ) Exchange differences (4 ) (49 ) (95 ) (13 ) (9 ) — — — (170 ) At December 31, 2017 (292 ) (40,275 ) (80,872 ) (17,738 ) (797 ) (1,733 ) (4,412 ) (809 ) (146,928 ) Depreciation charge — (3,550 ) (7,273 ) (2,253 ) (99 ) — (180 ) (279 ) (13,634 ) Disposals 223 287 1,593 1,317 50 47 170 — 3,687 Impairment (43 ) (319 ) (1,065 ) (709 ) (15 ) (536 ) (2,153 ) — (4,840 ) Exchange differences (3 ) (110 ) (191 ) (28 ) (24 ) — — — (356 ) At December 31, 2018 (115 ) (43,967 ) (87,808 ) (19,411 ) (885 ) (2,222 ) (6,575 ) (1,088 ) (162,071 ) Adjustment on initial application of IFRS16 (556 ) (5 ) — — — — — — (561 ) Depreciation charge (72 ) (2,919 ) (6,968 ) (3,469 ) (53 ) — (186 ) (295 ) (13,962 ) Disposals 25 194 2,237 2,108 21 30 4,615 Reversal of impairment/ (impairment) (36 ) 615 1,495 (415 ) 10 (310 ) (18 ) — 1,341 Exchange differences 4 117 194 39 23 — — — 377 At December 31, 2019 (750 ) (45,965 ) (90,850 ) (21,148 ) (884 ) (2,502 ) (6,779 ) (1,383 ) (170,261 ) Net book value At December 31, 2016 2,798 41,754 41,429 12,522 89 19,552 11,999 74,210 204,353 At December 31, 2017 2,803 40,538 36,766 13,093 199 17,912 12,565 73,999 197,875 At December 31, 2018 2,826 36,784 33,520 12,349 287 19,666 10,333 74,114 189,879 At December 31, 2019 4,748 38,572 32,657 16,373 279 18,974 10,848 74,541 196,992 |
Summary of Property, Plant And Equipment Other than Right-of-use Assets | Property, plant and equipment other than right-of-use assets Land Buildings and Operating Trans- Other Construction- Mining Railway Ulak-Elga Total Cost At December 31, 2018 2,941 80,751 119,583 17,203 1,172 21,888 16,908 75,202 335,648 Additions — 27 1,180 282 33 7,332 38 — 8,892 Change in rehabilitation provision — 456 — — — — 707 — 1,163 Transfers (9 ) 2,606 3,176 262 21 (6,752 ) (26 ) 722 — Transfer to own property, plant and equipment — — 752 95 — — — — 847 Disposals (24 ) (240 ) (2,400 ) (2,045 ) (33 ) (990 ) — — (5,732 ) Exchange differences (84 ) (263 ) (223 ) (29 ) (30 ) (2 ) — — (631 ) At December 31, 2019 2,824 83,337 122,068 15,768 1,163 21,476 17,627 75,924 340,187 Depreciation and impairment At December 31, 2018 (115 ) (43,967 ) (86,706 ) (14,323 ) (885 ) (2,222 ) (6,575 ) (1,088 ) (155,881 ) Depreciation charge — (2,781 ) (6,764 ) (882 ) (53 ) — (186 ) (295 ) (10,961 ) Transfer to own property, plant and equipment — — (638 ) (94 ) — — — — (732 ) Disposals 22 193 2,228 1,996 21 30 4,490 Reversal of impairment/ (impairment) 36 615 1,514 (52 ) 10 (310 ) (18 ) — 1,795 Exchange differences 3 114 192 34 23 — — — 366 At December 31, 2019 (54 ) (45,826 ) (90,174 ) (13,321 ) (884 ) (2,502 ) (6,779 ) (1,383 ) (160,923 ) Net book value At December 31, 2018 2,826 36,784 32,877 2,880 287 19,666 10,333 74,114 179,767 At December 31, 2019 2,770 37,511 31,894 2,447 279 18,974 10,848 74,541 179,264 |
Schedule of Property, Plant and Equipment Assets Pledged to Secure Bank Loans and Borrowings Granted to Group | Certain property, plant and equipment assets have been pledged to secure bank loans and borrowings granted to the Group: December 31, December 31, Net book value 116,717 117,370 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Intangible Assets | Goodwill Mineral Other intangible Cost At December 31, 2016 32,902 55,783 — Additions — — 880 Disposal — (165 ) — Exchange differences (24 ) — — At December 31, 2017 32,878 55,618 880 Additions — — — Disposal — — — Exchange differences 90 — — At December 31, 2018 32,968 55,618 880 Additions Disposal Exchange differences (57 ) At December 31, 2019 32,911 55,618 880 Amortisation and impairment At December 31, 2016 (14,547 ) (19,684 ) — Impairment — (1,190 ) — Amortisation — (1,504 ) — At December 31, 2017 (14,547 ) (22,378 ) — Impairment (2,382 ) — — Amortisation — (1,172 ) (36 ) Disposal — — — Exchange differences — — — At December 31, 2018 (16,929 ) (23,550 ) (36 ) Impairment (3 , ) (6 ) — Amortisation — (987 ) (35 ) Disposal — — — Exchange differences — — — At December 31, 2019 (20,068 ) (24,543 ) (71 ) Net book value At December 31, 2016 18,355 36,099 — At December 31, 2017 18,331 33,240 880 At December 31, 2018 16,039 32,068 844 At December 31, 2019 12,843 31,075 809 |
Impairment of goodwill and ot_2
Impairment of goodwill and other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Statement [LineItems] | |
Summary of Goodwill Acquired Through Business Combinations Allocated to CGUs for Impairment Testing | Goodwill acquired through business combinations has been allocated to CGUs for impairment testing as follows (before impairment write-downs): Goodwill Cash generating units Segment December 31, December 31, Yakutugol Mining 13,399 13,399 Kuzbass Power Sales Company Power 1,026 1,026 Port Posiet Mining 756 756 Chelyabinsk Metallurgical Plant Steel 589 646 Southern Kuzbass Coal Company Mining 143 143 Port Temryuk Mining 69 69 Southern Kuzbass Power Plant Power — 2,382 Total 15,982 18,421 |
Summary of Inflation and Discount Rates, Range of Discount Rates, Estimated for Each Year for Forecasted Period | Inflation and discount rates, range of discount rates, estimated for each year for the forecasted period, were as follows: Forecast period, years For the year ended December 31, 2018 2019 2020 2021 2022 2023 Inflation rate in Russia 5.0% 4.3% 3.8% 4.0% 4.0% Inflation rate in European countries 3.3% 3.3% 3.1% 3.1% 3.0% Pre-tax discount rate, % 11.10%-23.60% 11.10%-23.60% 11.10%-23.60% 11.10%-23.60% 11.10%-23.60% For the year ended December 31, 2019 2020 2021 2022 2023 2024 Inflation rate in Russia 3.7% 3.4% 3.8% 3.8% 3.8% Inflation rate in European countries 3.1% 2.7% 2.8% 2.8% 2.9% Pre-tax discount rate, % 10.0%-14.9% 10.0%-14.9% 10.0%-14.9% 10.0%-14.9% 10.0%-14.9% |
Summary of Carrying Value of Individual Items of Assets | According to the results of the impairment analysis of goodwill, an impairment loss as of December 31, 2019 was recognised in the following CGU: Cash generating units Impairment loss Yakutugol 3,139 Total 3,139 According to the results of the impairment analysis of goodwill, an impairment loss as of December 31, 2018 was recognised in the following CGU: Cash generating units Impairment loss Southern Kuzbass Power Plant (SKPP) 2,382 Total 2,382 |
Non-current assets [member] | |
Statement [LineItems] | |
Summary of Carrying Value of Individual Items of Assets | According to the results of the impairment analysis, impairment of non-current assets was identified for the following CGUs as of December 31, 2019: Cash generating units Impairment loss Bratsk Ferroalloy Plant (BFP) 727 Korshunov Mining Plant (KMP) 549 Total 1,276 According to the results of the impairment analysis, reversal of previously recognised impairment loss of non-current assets was identified for the following CGUs as of December 31, 2019: Cash generating units Gain from reversal of Izhstal 2,611 Total 2,611 According to the results of the impairment analysis, impairment of non-current assets was identified for the following CGUs as of December 31, 2018: Cash generating units Impairment loss Korshunov Mining Plant (KMP) 1,151 Izhstal 781 Southern Kuzbass Power Plant (SKPP) 337 Total 2,269 |
Non-current assets individually impaired [member] | |
Statement [LineItems] | |
Summary of Carrying Value of Individual Items of Assets | Carrying value of individual items of the non-current assets for the respective entities including the underground mining workings at SKCC was impaired due to changes in the Group’s management plans to invest funds into the ongoing construction projects and, as a result, the inability of these assets to generate future economic benefits in the current market conditions: Subsidiaries Impairment loss 2018 Southern Kuzbass Coal Company (SKCC) 2,533 Other 38 Total 2,571 According to the results of the impairment analysis, impairment of non-current assets was identified for the following CGUs as of December 31, 2017: Cash generating units Impairment loss Korshunov Mining Plant (KMP) 2,271 Izhstal 2,130 Bratsk Ferroalloy Plant (BFP) 151 Total 4,552 The carrying value of individual items of the non-current assets for the respective entity was impaired due to the decline by the regulatory authorities to extend the term of mineral license for exploration and extraction: Subsidiaries Impairment loss 2017 Southern Kuzbass Coal Company (SKCC) 1,529 Total 1,529 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Trade and Other Payables | December 31, December 31, Trade payables 27,806 24,288 Other payables 10,585 10,512 Total trade and other payables 38,391 34,800 |
Summary of Other Payables | Other payables include accruals for fines and penalties, payables for property, plant and equipment acquired, salaries payable, dividends payable and other. December December 31, Other payables Wages and salaries payable and other related obligations 3,538 3,425 Accounts payable for property, plant and equipment 3,164 2,600 Dividends payable, common shares 136 146 Dividends payable, preferred shares 80 86 Other 3,667 4,255 Total 10,585 10,512 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Major Components of Income Tax Expense | The major components of income tax expense for the years ended December 31, 2019, 2018 and 2017 are: Recognised in profit or loss 2019 2018 2017 Current income tax Current income tax charge (2,981 ) (2,315 ) (3,397 ) Adjustments in respect of income tax, including income tax penalties and changes in uncertain income tax position (2,718 ) (2,962 ) (3,154 ) Deferred tax Relating to origination and reversal of temporary differences (2,288 ) 2,596 3,401 Income tax expense reported in the consolidated statement of profit (loss) and other comprehensive income (7,987 ) (2,681 ) (3,150 ) |
Schedule of Reconciliation Related to Income Tax Expense | The reconciliation between the income tax expense computed by applying the Russian enacted statutory tax rates to the income from continuing operations before tax and non-controlling interest, to the income tax expense reported in the consolidated financial statements is as follows: 2019 2018 2017 Profit before tax from continuing operations 12,272 16,217 15,720 Income tax expense at statutory income tax rate of 20% (2,454 ) (3,243 ) (3,144 ) Adjustments: Adjustments in respect of income tax, including income tax penalties and changes in uncertain income tax position. (2,718 ) (2,962 ) (3,154 ) Unrecognised current year tax losses and write-off of previously recognised asset on tax losses (1,277 ) 4,008 4,783 Non-deductible expenses for tax purposes (1,347 ) (3,625 ) (1,755 ) Non-deductible interest expense (229 ) (363 ) (254 ) Effect of restructuring and expense related to fines and penalties on breach of covenants in credit agreements — 3,460 112 Effect of different tax rates 155 (12 ) 262 Change in tax rate (117 ) 56 — At the effective income tax rate of 65.1% (16.5% in 2018, 20.0% in 2017) income tax expense reported in the consolidated statement of profit (loss) and other comprehensive income (7,987 ) (2,681 ) (3,150 ) |
Schedule of Deferred Tax Assets and Liabilities | The amounts reported in the accompanying consolidated financial statements consisted of the following: January 1, Adjustment January 1, Tax (expense) recognised in Foreign currency December 31, Deferred tax assets Property, plant and equipment 386 (86 ) 300 386 — 686 Rehabilitation provision 773 — 773 295 — 1,068 Inventory 1,716 — 1,716 (36 ) (1 ) 1,679 Trade and other receivables 790 — 790 (269 ) (2 ) 519 Loans and borrowings 320 — 320 40 — 360 Lease liabilities 843 651 1,494 1,087 (4 ) 2,577 Trade and other payables and other liabilities 869 — 869 (340 ) — 529 Net operating loss carry-forwards 13,623 — 13,623 (3,210 ) (10 ) 10,403 Other 74 — 74 40 (3 ) 111 Deferred tax liabilities Property, plant and equipment (15,468 ) (537 ) (16,005 ) (1,830 ) 30 (17,805 ) Mineral licenses (6,376 ) — (6,376 ) 235 — (6,141 ) Inventory (834 ) — (834 ) (160 ) 5 (989 ) Trade and other receivables (499 ) — (499 ) (280 ) 5 (774 ) Loans and borrowings (3,898 ) — (3,898 ) 1,825 — (2,073 ) Trade and other payables and other liabilities (337 ) — (337 ) (71 ) 29 (379 ) Deferred tax assets (liabilities), net (8,018 ) 28 (7,990 ) (2,288 ) 49 (10,229 ) January 1, Adjustment January 1, Tax (expense) recognised in Foreign currency December 31, Deferred tax assets Property, plant and equipment 759 — 759 (373 ) — 386 Rehabilitation provision 802 — 802 (29 ) — 773 Inventory 179 — 179 1,537 — 1,716 Trade and other receivables 735 — 735 52 3 790 Loans and borrowings 313 822 1,135 (815 ) — 320 Lease liabilities 983 — 983 (141 ) 1 843 Trade and other payables and other liabilities 656 — 656 213 — 869 Net operating loss carry-forwards 7,972 — 7,972 5,646 5 13,623 Other 86 — 86 (15 ) 3 74 Deferred tax liabilities Property, plant and equipment (15,869 ) — (15,869 ) 429 (28 ) (15,468 ) Mineral licenses (6,652 ) (6,652 ) 276 — (6,376 ) Inventory (801 ) — (801 ) (28 ) (5 ) (834 ) Trade and other receivables (330 ) — (330 ) (160 ) (9 ) (499 ) Loans and borrowings (112 ) 50 (62 ) (3,835 ) (1 ) (3,898 ) Trade and other payables and other liabilities (119 ) — (119 ) (161 ) (57 ) (337 ) Deferred tax assets (liabilities), net (11,398 ) 872 (10,526 ) 2,596 (88 ) (8,018 ) January 1, Tax benefit recognised in Foreign currency December 31, Deferred tax assets Property, plant and equipment 677 81 1 759 Rehabilitation provision 694 108 — 802 Inventory 193 (9 ) (5 ) 179 Trade and other receivables 831 (92 ) (4 ) 735 Loans and borrowings 118 195 — 313 Lease liabilities 1,121 (138 ) — 983 Trade and other payables and other liabilities 700 (31 ) (13 ) 656 Net operating loss carry-forwards 4,715 3,248 9 7,972 Other 59 26 1 86 Deferred tax liabilities Property, plant and equipment (15,665 ) (193 ) (11 ) (15,869 ) Mineral licenses (7,216 ) 564 — (6,652 ) Inventory (684 ) (117 ) — (801 ) Trade and other receivables (124 ) (207 ) 1 (330 ) Loans and borrowings (103 ) (9 ) — (112 ) Trade and other payables and other liabilities (96 ) (25 ) 2 (119 ) Deferred tax assets (liabilities), net (14,780 ) 3,401 (19 ) (11,398 ) |
Schedule of Deferred Tax Assets and Liabilities Recognized | Recognised in the consolidated statement of financial position: December 31, December 31, Deferred tax assets 3,648 5,488 Deferred tax liabilities (13,877 ) (13,506 ) Deferred tax liabilities, net (10,229 ) (8,018 ) |
Taxes and similar charges pay_2
Taxes and similar charges payable other than income tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Taxes and Similar Charges Payable Other than Income Tax | December 31, December 31, Payroll taxes 3,353 2,424 VAT payable 4,120 2,233 Property tax 566 511 Land lease 454 471 Mineral extraction tax 332 226 Land tax 240 125 Other 163 116 Total 9,228 6,106 |
Pensions and other post-emplo_2
Pensions and other post-employment benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Schedule of Changes in Present Value of the Defined Benefit Obligations and Other Long-term Benefits and Fair Value of Plan Assets | Changes in the present value of the pension obligations and other long-term benefits and fair value of plan assets for 2017 were as follows: Pension Fair value of Benefit December 31, 2016 (4,697 ) 252 (4,445 ) Current service cost (142 ) — (142 ) Net interest expense (331 ) 17 (314 ) Curtailment / settlement gain 1 — 1 Remeasurement of other long-term benefit obligations 174 — 174 Past service cost — — — Sub-total included in profit or loss (298 ) 17 (281 ) Benefit paid 313 (17 ) 296 Exchange difference (95 ) 19 (76 ) Actuarial changes arising from changes in demographic assumptions 51 — 51 Actuarial changes arising from changes in financial assumptions (69 ) — (69 ) Experience adjustments 163 — 163 Sub-total included in OCI 50 19 69 December 31, 2017 (4,632 ) 271 (4,361 ) Changes in the present value of the pension obligations and other long-term benefits and fair value of plan assets for 2018 were as follows: Pension Fair value of Benefit December 31, 2017 (4,632 ) 271 (4,361 ) Current service cost (130 ) — (130 ) Net interest expense (266 ) (13 ) (279 ) Curtailment / settlement gain 4 — 4 Remeasurement of other long-term benefit obligations (492 ) — (492 ) Past service cost 70 — 70 Sub-total included in profit or loss (814 ) (13 ) (827 ) Benefit paid 299 (17 ) 282 Exchange difference (213 ) 41 (172 ) Actuarial changes arising from changes in demographic assumptions (38 ) — (38 ) Actuarial changes arising from changes in financial assumptions 354 — 354 Experience adjustments 171 — 171 Sub-total included in OCI 274 41 315 December 31, 2018 (4,873 ) 282 (4,591 ) Changes in the present value of the pension obligations and other long-term benefits and fair value of plan assets for 2019 were as follows: Pension Fair value of Benefit December 31, 2018 (4,873 ) 282 (4,591 ) Current service cost (210 ) — (210 ) Net interest expense (297 ) 4 (293 ) Curtailment / settlement gain — — — Remeasurement of other long-term benefit obligations (25 ) — (25 ) Past service cost — — — Sub-total included in profit or loss (532 ) 4 (528 ) Benefit paid 344 (7 ) 337 Exchange difference 117 (16 ) 101 Actuarial changes arising from changes in demographic assumptions (88 ) — (88 ) Actuarial changes arising from changes in financial assumptions (772 ) — (772 ) Experience adjustments (7 ) — (7 ) Sub-total included in OCI (750 ) (16 ) (766 ) December 31, 2019 (5,811 ) 263 (5,548 ) |
Schedule of Pension Obligations Recognized in Consolidated Statement of Financial Position | In 2019, the effect of actuarial changes arising from changes in financial assumptions is connected with the significant decrease in discount rate. Amounts of the pension obligations recognised in the consolidated statement of the financial position were as follows: December 31, December 31, Current liabilities 615 772 Non-current liabilities 4,933 3,819 Total net pension obligations 5,548 4,591 |
Schedule of Plan Asset Allocation of Investment Portfolio | The plan asset allocation of the investment portfolio was as follows as of December 31, 2019 and 2018: December 31, December 31, Debt instruments 142 161 Equity instruments 82 74 Cash and cash equivalents 18 19 Property 12 15 Other assets 9 13 Total plan assets 263 282 |
Schedule of Key Actuarial Assumptions Used to Determine Benefit Obligations | The key actuarial assumptions used to determine defined benefit obligations were as follows as of December 31, 2019 and 2018: December 31, December 31, Discount rate Russian entities 6.60 % 8.60 % German entities 1.10 % 1.90 % Ukrainian entity 5.70 % 11.80 % Austrian entities 0.75 % 1.70 % Inflation rates Russian entities 4.00 % 4.00 % Ukrainian entity 6.70 % 6.60 % Rate of compensation increase Russian entities 5.10 % 5.00 % German entities 4.00 % 4.00 % Ukrainian entity 9.90 % 9.60 % Austrian entities 2.25 % 2.25 % |
Schedule of Sensitivity Analysis of Defined Benefit Obligations | The results of sensitivity analysis of defined benefit obligations for the Russian and Ukrainian entities as of December 31, 2019 and 2018 are presented below: 2019 2018 Discount rate 1% increase -9.20 % -6.75 % 1% decrease 11.00 % 7.85 % Inflation rate 1% increase 5.90 % 5.09 % 1% decrease -5.00 % -4.37 % Rate of compensation increase 1% increase 4.00 % 2.48 % 1% decrease -3.60 % -2.23 % Turnover rate 3% increase -7.40 % -5.98 % 3% decrease 7.90 % 7.87 % The results of sensitivity analysis of defined benefit obligations for Austrian entities as of December 31, 2019 and 2018 are presented below: 2019 2018 Discount rate 1% increase -10.20 % -10.03 % 1% decrease 12.20 % 11.98 % The results of sensitivity analysis of defined benefit obligations for German entities as of December 31, 2019 and 2018 are presented below: 2019 2018 Discount rate 1% increase -12.00 % -12.00 % 1% decrease 18.00 % 18.00 % |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Provisions | Rehabilitation Provisions for Provisions on Other Total At December 31, 2016 3,678 746 760 1,732 6,916 Arising during the year — 2,175 23 7 2,205 Utilized (79 ) (451 ) (1 ) (905 ) (1,436 ) Revision in estimated cash flow and discount rate change 82 — — — 82 Unused amounts reversed — (180 ) (232 ) (551 ) (963 ) Unwinding of discount 311 — — — 311 Exchange differences — — 26 32 58 At December 31, 2017 3,992 2,290 576 315 7,173 Current 178 2,290 576 315 3,359 Non-current 3,814 — — — 3,814 Arising during the year — 1,516 199 905 2,620 Utilized (77 ) (273 ) — (256 ) (606 ) Revision in estimated cash flow and discount rate change (309 ) — — — (309 ) Unused amounts reversed — (646 ) (188 ) (20 ) (854 ) Unwinding of discount 302 — — — 302 Exchange differences — 215 (4 ) 4 215 At December 31, 2018 3,908 3,102 583 948 8,541 Current 189 3,102 583 948 4,822 Non-current 3,719 — — — 3,719 Arising during the year — 1,346 980 — 2,326 Utilized (30 ) (264 ) — (722 ) (1,016 ) Revision in estimated cash flow and discount rate change 1,180 — — — 1,180 Unused amounts reversed — (1,200 ) (9 ) (197 ) (1,406 ) Unwinding of discount 345 — — — 345 Exchange differences — (150 ) (19 ) (5 ) (174 ) At December 31, 2019 5,403 2, 834 1,535 24 9,796 Current 165 2, 834 1,535 24 4,558 Non-current 5,238 — — — 5,238 |
Other income_expenses (Tables)
Other income/expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of General, Administrative and Other Operating Expenses | General, administrative and other operating expenses are comprised of the following: 2019 2018 2017 Wages, salaries and social security costs 9,116 10,482 7,769 Office and maintenance expenses 1,231 1,213 1,211 Loss on write-off of non-current assets 1,103 859 321 Depreciation 728 756 605 Fines and penalties related to business contracts 630 391 303 Audit and consulting services 558 941 631 Provision for legal claims, net 146 870 1,995 Banking charges and services 330 245 271 Consumables 308 307 276 Social expenses 303 387 406 Business trips 115 139 132 Expense relating to short-term leases (Note 10.6) 83 158 165 Write off of trade and other receivables 5 2 109 Net result from disposal of non-current assets — — 34 Other 1,660 2,015 1,683 Total 16,316 18,765 15,911 |
Summary of Employee Benefits Expenses | Employee benefits expenses are comprised of the following: 2019 2018 2017 Included in cost of sales Wages and salaries 23,022 21,519 20,591 Social security costs 7,485 6,887 6,438 Post-employment benefits 210 130 142 Included in selling and distribution expenses Wages and salaries 3,882 3,784 3,686 Social security costs 1,052 999 973 Included in administrative and other operating expenses Wages and salaries 7,206 8,444 6,259 Social security costs 1,910 2,038 1,510 Total 44,767 43,801 39,599 |
Summary of Other Operating Income | Other operating income is comprised of the following: 2019 2018 2017 Income from fines and penalties related to business contracts 160 248 307 Net result from disposal of non-current assets 27 128 — Curtailment and result of remeasurement of pension obligations 25 93 175 Gain from sales of scrap materials — 378 226 Subsidies received from the governmental authorities as a compensation for operating activities (energy tariffs) — 359 496 Other 533 505 183 Total 745 1,711 1,387 |
Summary of Finance Income | Finance income is comprised of the following: 2019 2018 2017 Effect of restructuring of loans and leases 362 33,514 264 Interest income on other financial assets 180 207 158 Income from the discounting of financial instruments 58 15 14 Remeasurement of fair value of financial instruments (Note 10.5) — 320 197 Total 600 34,056 633 |
Summary of Finance Costs | Finance costs are comprised of the following: 2019 2018 2017 Interest on loans and borrowings 31,750 35,556 40,298 Interest expense on lease liabilities 1,409 1,104 1,230 Fines and penalties on overdue loans and borrowing payments and overdue interest payments 733 858 1,086 Fines and penalties on overdue leases 49 10 75 Total finance costs related to loans, borrowings and leases 33,941 37,528 42,689 Expenses related to discounting of financial instruments 4,251 3,916 4,179 Unwinding of discount on rehabilitation provision 345 302 311 Interest expenses under pension liabilities 293 279 314 Remeasurement of fair value of the call option (Note 10.5) — 27 117 Total 38,830 42,052 47,610 |
Summary of Other Income | Other income is comprised of the following: 2019 2018 2017 Write-off of trade and other payables with expired legal term 167 425 516 Gain on royalty and other proceeds associated with disposal of Bluestone — 3 474 Gain on final settlements from subsidiaries’ disposal occurred in previous years — 3 — Gain on forgiveness and restructuring of trade and other payables — — 447 Other income 72 81 58 Total 239 512 1,495 |
Summary of Other Expenses | Other expenses are comprised of the following: 2019 2018 2017 Loss on sales and purchases of foreign currencies 148 108 114 Other expenses 356 206 106 Total 504 314 220 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text block [abstract] | |
Summary of Operating Results by Segments | As of December 31, 2019 and for the year then ended Mining Steel Power Adjustments Consolidated Revenue from contracts with external customers 92,996 174,850 28,721 — 296,567 Inter-segment revenue 37,710 6,107 15,606 (59,423 ) — Gross profit 68,152 27,525 13,190 (157 ) 108,710 Gross margin, % 52.1 15.2 29.8 — 36.7 Depreciation and amortisation (8,541 ) (6,153 ) (482 ) — (15,176 ) Impairment of goodwill and other non-current (3,688 ) 1,884 — — (1,804 ) Operating profit 23,902 7,126 1,548 (1,078 ) 31,498 Share of profit of associates, net 28 — — — 28 Finance income 524 75 1 — 600 Intersegment finance income 386 375 30 (791 ) — Finance cost (23,934 ) (14,514 ) (382 ) — (38,830 ) Intersegment finance cost (195 ) (325 ) (271 ) 791 — Income tax expense (94 ) (503 ) (333 ) (7,057 ) (7,987 ) Profit for the year 4,955 6,934 531 (8,135 ) 4,285 Segment assets 202,423 100,493 7,610 1,979 312,505 Segment liabilities 300,058 233,279 9,432 3,333 546,102 Investments in associates 321 — — — 321 As of December 31, 2018 and for the year then ended Mining Steel Power Adjustments Consolidated Revenue from contracts with external customers 96,882 187,918 27,774 — 312,574 Inter-segment revenue 37,549 5,865 15,471 (58,885 ) — Gross profit 77,199 44,433 12,571 615 134,818 Gross margin, % 57.4 22.9 29.1 — 43.1 Depreciation and amortisation (7,621 ) (5,738 ) (500 ) — (13,859 ) Impairment of goodwill and other non-current (3,684 ) (819 ) (2,719 ) — (7,222 ) Operating profit (loss) 32,574 19,831 (3,240 ) 615 49,780 Share of profit of associates, net 10 — — — 10 Finance income 23,387 9,478 1,191 — 34,056 Intersegment finance income 1,071 395 41 (1,507 ) — Finance cost (28,932 ) (12,810 ) (310 ) — (42,052 ) Intersegment finance cost (220 ) (1,015 ) (272 ) 1,507 — Income tax (expense) benefit (5,940 ) 531 83 2,645 (2,681 ) Profit (loss) for the year 11,489 1,331 (2,544 ) 3,260 13,536 Segment assets 208,123 97,373 7,519 4,610 317,625 Segment liabilities 296,125 247,241 9,469 (2,015 ) 550,820 Investments in associates 293 — — — 293 As of December 31, 2017 and for the year then ended Mining Steel Power Adjustments Consolidated Revenue from contracts with external customers 100,129 172,760 26,224 — 299,113 Inter-segment revenue 42,286 7,622 16,338 (66,246 ) — Gross profit 93,464 34,013 12,724 (1,444 ) 138,757 Gross margin, % 65.6 18.9 29.9 — 46.4 Depreciation and amortisation (7,979 ) (5,800 ) (448 ) — (14,227 ) Impairment of goodwill and other non-current (3,800 ) (2,281 ) — — (6,081 ) Operating profit 48,190 9,154 1,267 (1,444 ) 57,167 Share of profit of associates, net 18 — — — 18 Finance income 475 150 8 — 633 Intersegment finance income 1,335 567 49 (1,951 ) — Finance cost (34,324 ) (12,793 ) (493 ) — (47,610 ) Intersegment finance cost (222 ) (1,342 ) (387 ) 1,951 — Income tax (expense) benefit (3,410 ) (203 ) (229 ) 692 (3,150 ) Profit (loss) for the year 17,210 (4,116 ) 228 (752 ) 12,570 Segment assets 209,630 100,543 10,417 (1,463 ) 319,127 Segment liabilities 371,196 184,952 9,808 (2,696 ) 563,260 Investments in associates 283 — — — 283 |
Summary of Group's Revenues Segregated Between Domestic and Export Sales | The following table presents the Group’s revenues from contracts with customers segregated between domestic and export sales. Domestic represents sales by a subsidiary in the country in which it is located. This category is further divided between subsidiaries located in Russia and other countries. Export represents cross-border sales by a subsidiary regardless of its location. 2019 2018 2017 Domestic Russia 171,215 178,880 176,906 Other 28,469 29,666 23,445 Total 199,684 208,546 200,351 Export 96,883 104,028 98,762 Total revenue 296,567 312,574 299,113 |
Summary of Group's Total Revenues from External Customers by Geographic Area | Allocation of total revenue from contracts with customers by country is based on the location of the customer. The Group’s total revenue from external customers by geographic area were as follows: 2019 2018 2017 Russia 171,344 178,997 177,005 Asia 63,187 61,840 63,182 Europe 38,334 44,263 36,605 CIS 21,465 23,877 19,346 Middle East 1,983 3,130 2,212 USA 155 258 286 Other regions 99 209 477 Total 296,567 312,574 299,113 |
Summary of Carrying Amounts of Mineral Licenses and Property, Plant and Equipment Pertaining to Group's Major Operations | The majority of the Group’s non-current December 31, December 31, Russia 225,755 219,504 Germany 1,225 1,532 Austria 677 637 Czech Republic 237 224 Other 173 50 Total 228,067 221,947 |
Summary of Group's Revenues from External Customers by Major Products | The following table presents the breakdown of the Group’s revenues from contracts with external customers by major products: 2019 2018 2017 Mining segment Coal and middlings 71,970 80,022 84,341 Coke and chemical products 17,970 14,205 13,747 Iron ore concentrate 1,179 839 220 Other 1,877 1,816 1,821 Total 92,996 96,882 100,129 Steel segment Long steel products 97,692 105,722 96,768 Hardware 27,086 30,040 27,578 Flat steel products 23,371 22,786 22,505 Forgings and stampings 14,818 15,848 12,247 Ferrosilicon 3,229 3,927 2,807 Steel pipes 3,281 3,230 2,733 Semi-finished steel products 137 54 492 Other 5,236 6,311 7,630 Total 174,850 187,918 172,760 Power segment Electricity 26,965 26,009 24,297 Other 1,756 1,765 1,927 Total 28,721 27,774 26,224 Total revenue 296,567 312,574 299,113 |
Corporate Information - Summary
Corporate Information - Summary of Corporate Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Southern Kuzbass Coal Company (SKCC) [member] | Russia [member] | Coal mining [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 1999-01 |
Interest in voting stock held by the Group | 99.10% |
Chelyabinsk Metallurgical Plant (CMP) [member] | Russia [member] | Steel products [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2001-12 |
Interest in voting stock held by the Group | 94.20% |
Vyartsilya Metal Products Plant (VMPP) [member] | Russia [member] | Steel products [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2002-05 |
Interest in voting stock held by the Group | 93.30% |
Beloretsk Metallurgical Plant (BMP) [member] | Russia [member] | Steel products [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2002-06 |
Interest in voting stock held by the Group | 94.80% |
Urals Stampings Plant (USP) [member] | Russia [member] | Steel products [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2003-04 |
Interest in voting stock held by the Group | 93.80% |
Korshunov Mining Plant (KMP) [member] | Russia [member] | Iron ore mining [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2003-10 |
Interest in voting stock held by the Group | 90.00% |
Mechel Nemunas (MN) [member] | Lithuania [member] | Steel products [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2003-10 |
Interest in voting stock held by the Group | 100.00% |
Mechel Energo [member] | Russia [member] | Power sales [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2004-02 |
Interest in voting stock held by the Group | 100.00% |
Port Posiet [member] | Russia [member] | Transshipment [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2004-02 |
Interest in voting stock held by the Group | 97.80% |
Izhstal [member] | Russia [member] | Steel products [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2004-05 |
Interest in voting stock held by the Group | 90.00% |
Port Kambarka [member] | Russia [member] | Transshipment [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2005-04 |
Interest in voting stock held by the Group | 90.40% |
Mechel Service [member] | Russia [member] | Trading [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2005-05 |
Interest in voting stock held by the Group | 100.00% |
Mechel Coke [member] | Russia [member] | Coke production [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2006-06 |
Interest in voting stock held by the Group | 100.00% |
Moscow Coke and Gas Plant (Moskoks) [member] | Russia [member] | Coke production [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2006-10 |
Interest in voting stock held by the Group | 99.50% |
Southern Kuzbass Power Plant (SKPP) [member] | Russia [member] | Power generation [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2007-04 |
Interest in voting stock held by the Group | 98.30% |
Kuzbass Power Sales Company (KPSC) [member] | Russia [member] | Electricity distribution [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2007-06 |
Interest in voting stock held by the Group | 72.10% |
Bratsk Ferroalloy Plant (BFP) [member] | Russia [member] | Ferrosilicon production [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2007-08 |
Interest in voting stock held by the Group | 100.00% |
Yakutugol [member] | Russia [member] | Coal mining [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2007-10 |
Interest in voting stock held by the Group | 100.00% |
Port Temryuk [member] | Russia [member] | Transshipment [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2008-03 |
Interest in voting stock held by the Group | 100.00% |
Mechel Carbon AG [member] | Switzerland [member] | Trading [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2008-04 |
Interest in voting stock held by the Group | 100.00% |
HBL Holding GmbH (HBL) [member] | Germany [member] | Trading [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2008-09 |
Interest in voting stock held by the Group | 100.00% |
Mechel Service Stahlhandel Austria GmbH and its subsidiaries [member] | Austria [member] | Trading [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2012-09 |
Interest in voting stock held by the Group | 100.00% |
Elgaugol [member] | Russia [member] | Coal mining [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2013-08 |
Interest in voting stock held by the Group | 51.00% |
Elga-road [member] | Russia [member] | Railroad transportation [member] | |
Disclosure of description of reporting entity [line items] | |
Date control acquired / date of incorporation | 2016-01 |
Interest in voting stock held by the Group | 51.00% |
Corporate Information - Summa_2
Corporate Information - Summary of Corporate Information (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of description of reporting entity [line items] | |
Percentage based on which Elgaugol and Elga-road are consolidated | 100.00% |
Gazprombank [member] | |
Disclosure of description of reporting entity [line items] | |
Percentage of shares disposed | 49.00% |
Percentage of stock granted for sale | 49.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Exchange Rates for the Functional and Operating Currencies (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. dollars [member] | |||
Disclosure of exchange rates for the functional and operating currencies at various subsidiaries other than the presentation currency [line items] | |||
Rates at | 61.91 | 69.47 | |
Average exchange rates | 64.74 | 62.71 | 58.35 |
Euro [member] | |||
Disclosure of exchange rates for the functional and operating currencies at various subsidiaries other than the presentation currency [line items] | |||
Rates at | 69.34 | 79.46 | |
Average exchange rates | 72.50 | 73.95 | 65.90 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | Buildings and constructions [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful economic lives estimates | 5 years |
Bottom of range [member] | Operating machinery and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful economic lives estimates | 2 years |
Bottom of range [member] | Transportation vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful economic lives estimates | 2 years |
Bottom of range [member] | Other equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful economic lives estimates | 2 years |
Top of range [member] | Buildings and constructions [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful economic lives estimates | 85 years |
Top of range [member] | Operating machinery and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful economic lives estimates | 30 years |
Top of range [member] | Transportation vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful economic lives estimates | 25 years |
Top of range [member] | Other equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful economic lives estimates | 15 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Detail) - RUB (₽) ₽ in Thousands | 12 Months Ended | 72 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Line items] | ||||
Russian pension fund contribution rate | 10.00% | |||
Maximum contribution per employee annual salary percentage | 22.00% | |||
Annual gross salary | ₽ 1,150 | |||
Non-taxable income right [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Amount of non-taxable income | ₽ 10,000 | ₽ 10,000 | ₽ 10,000 | |
Bottom of range [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Intangible assets useful lives | 2 years | |||
Bottom of range [member] | Land [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Right of use assets useful life | 2 years | |||
Bottom of range [member] | Transfer pricing [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Transaction with related party | ₽ 1,000,000 | ₽ 1,000,000 | ||
Percentage of controlling interest in foreign corporation to be recognized as controlled foreign corporation | 25.00% | |||
Bottom of range [member] | Transfer pricing [member] | Scenario [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Percentage of controlling interest in foreign corporation to be recognized as controlled foreign corporation | 10.00% | |||
Top of range [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Intangible assets useful lives | 25 years | |||
Top of range [member] | Land [member] | ||||
Summary Of Significant Accounting Policies [Line items] | ||||
Right of use assets useful life | 91 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Disclosure In Tabular Form Of Estimated Lives Of Right Of Use Assets Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Bottom of range [member] | Buildings and constructions [member] | |
Disclosure Of Estimated Useful Lives Of Right Of Use Assets [Line Items] | |
Right of use assets useful life | 2 years |
Bottom of range [member] | Operating machinery and equipment [member] | |
Disclosure Of Estimated Useful Lives Of Right Of Use Assets [Line Items] | |
Right of use assets useful life | 5 years |
Bottom of range [member] | Transportation vehicles [member] | |
Disclosure Of Estimated Useful Lives Of Right Of Use Assets [Line Items] | |
Right of use assets useful life | 2 years |
Top of range [member] | Buildings and constructions [member] | |
Disclosure Of Estimated Useful Lives Of Right Of Use Assets [Line Items] | |
Right of use assets useful life | 5 years |
Top of range [member] | Operating machinery and equipment [member] | |
Disclosure Of Estimated Useful Lives Of Right Of Use Assets [Line Items] | |
Right of use assets useful life | 10 years |
Top of range [member] | Transportation vehicles [member] | |
Disclosure Of Estimated Useful Lives Of Right Of Use Assets [Line Items] | |
Right of use assets useful life | 22 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Impact of IFRS 16 on Consolidated Statemtent of Financial Position (Detail) - RUB (₽) ₽ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||||
Property, plant and equipment (right-of-use assets) (Note 15) | ₽ 2,698 | ||||
Deferred tax assets | 3,648 | ₽ 5,488 | |||
Total assets | 312,505 | 317,625 | ₽ 319,127 | ||
Liabilities | |||||
Non-current lease liabilities | 7,002 | 2,413 | |||
Current lease liabilities | 10,353 | 5,880 | |||
Total liabilities | 546,102 | 550,820 | 563,260 | ||
Net impact on equity | ₽ (233,597) | ₽ (233,195) | ₽ (244,133) | ₽ (252,588) | |
Increase (decrease) due to application of IFRS 16 [member] | |||||
Assets | |||||
Property, plant and equipment (right-of-use assets) (Note 15) | ₽ 2,698 | ||||
Deferred tax assets | 28 | ||||
Total assets | 2,726 | ||||
Liabilities | |||||
Non-current lease liabilities | 3,125 | ||||
Current lease liabilities | 134 | ||||
Total liabilities | 3,259 | ||||
Net impact on equity | ₽ (533) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Reconciliation of lease liabilities at the date of initial application IFRS 16 (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of quantitative information about leases for lessee [abstract] | |||
Operating lease commitments discounted | ₽ 2,647 | ||
Reclassification from finance lease liabilities | 8,293 | ||
Commitments relating to short-term leases discounted | (73) | ||
Adjustments as a result of a different treatment of extension and termination options, net | ₽ 685 | ||
Lease liabilities as of January 1, 2019 | ₽ 0 | ₽ 11,552 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Reconciliation of lease liabilities at the date of initial application IFRS 16 (Parenthetical) (Detail) - RUB (₽) ₽ in Millions | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of quantitative information about leases for lessee [abstract] | ||
Operating lease commitments | ₽ 7,513 | |
Operating lease rent payable | 60,911 | |
Lease mineral deposit and other facilities | ₽ 53,398 | |
Operating lease discounting percentage | 9.20% |
Going Concern - Additional Info
Going Concern - Additional Information (Detail) ₽ in Millions | Dec. 31, 2019RUB (₽) |
Disclosure of going concern [line items] | |
Amount of groups total liabilities exceeded total assets | ₽ 233,597 |
On demand | 373,705 |
Long-term debt classified as short-term debt | 220,046 |
Accrued fines and penalties | ₽ 2,097 |
Capital Management - Summary of
Capital Management - Summary of Covenant Ratios under Most Significant Loan Agreements with the Russian State-Controlled Banks (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mechel's EBITDA to Net Interest Expense [member] | Bottom of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 200.00% | 175.00% |
Actual ratio | 136.00% | 179.00% |
Mechel's EBITDA to Consolidated Financial Expense [member] | Bottom of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 200.00% | 175.00% |
Actual ratio | 140.00% | 182.00% |
Mechel's Net Debt to EBITDA [member] | Top of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 600.00% | 600.00% |
Actual ratio | 885.00% | 639.00% |
Mechel's Total Debt to EBITDA [member] | Top of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 350.00% | 450.00% |
Actual ratio | 851.00% | 625.00% |
Mechel's Cash flow from operating activities to EBITDA [member] | Bottom of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 80.00% | 80.00% |
Actual ratio | 108.00% | 90.00% |
Mechel's EBITDA to Revenue [member] | Bottom of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 20.00% | 20.00% |
Actual ratio | 18.00% | 24.00% |
Material Partly-Owned Subsidi_3
Material Partly-Owned Subsidiaries - Summary of Financial Information of Subsidiaries (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Southern Kuzbass Coal Company (SKCC) and subsidiaries [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interest held by non-controlling interests | 0.90% | 0.90% |
Kuzbass Power Sales Company (KPSC) [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interest held by non-controlling interests | 27.90% | 27.90% |
Chelyabinsk Metallurgical Plant (CMP) [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interest held by non-controlling interests | 5.80% | 5.80% |
Southern Urals Nickel Plant (SUNP) [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interest held by non-controlling interests | 15.90% | 15.90% |
Beloretsk Metallurgical Plant (BMP) [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interest held by non-controlling interests | 8.60% | 8.60% |
Korshunov Mining Plant (KMP) [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interest held by non-controlling interests | 10.00% | 10.00% |
Urals Stampings Plant (USP) [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interest held by non-controlling interests | 6.20% | 6.20% |
Izhstal [member] | ||
Disclosure of subsidiaries [line items] | ||
Proportion of equity interest held by non-controlling interests | 10.00% | 10.00% |
Material Partly-Owned Subsidi_4
Material Partly-Owned Subsidiaries - Summary of Statements of Profit and Other Comprehensive Income (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Revenue from contracts with customers | ₽ 296,567 | ₽ 312,574 | ₽ 299,113 |
Cost of sales | (187,857) | (177,756) | (160,356) |
Total other income and (expense), net | (19,226) | (33,563) | (41,447) |
Profit (loss) before tax | 12,272 | 16,217 | 15,720 |
Income tax (expense) benefit | (7,987) | (2,681) | (3,150) |
(Loss) profit for the period | 4,285 | 13,536 | 12,570 |
Total comprehensive (loss) income | 1,647 | 14,014 | 13,028 |
Attributable to non-controlling interests | 1,876 | 908 | 1,013 |
Southern Kuzbass Coal Company (SKCC) and subsidiaries [member] | |||
Disclosure of subsidiaries [line items] | |||
Revenue from contracts with customers | 35,059 | 32,251 | 31,993 |
Cost of sales | (21,667) | (18,123) | (18,173) |
Total selling, distribution and operating expenses, net | (7,264) | (9,064) | (7,844) |
Total other income and (expense), net | (233) | (4,514) | 12,769 |
Profit (loss) before tax | 5,895 | 550 | 18,745 |
Income tax (expense) benefit | (372) | (1,707) | (718) |
(Loss) profit for the period | 5,523 | (1,157) | 18,027 |
Total comprehensive (loss) income | 5,523 | (1,157) | 18,027 |
Attributable to non-controlling interests | 79 | 12 | 103 |
Dividends paid to non-controlling interests | 198 | ||
Kuzbass Power Sales Company (KPSC) [member] | |||
Disclosure of subsidiaries [line items] | |||
Revenue from contracts with customers | 24,624 | 24,084 | 22,418 |
Cost of sales | (12,479) | (12,077) | (10,754) |
Total selling, distribution and operating expenses, net | (11,531) | (11,894) | (11,182) |
Total other income and (expense), net | 209 | 343 | 340 |
Profit (loss) before tax | 823 | 456 | 822 |
Income tax (expense) benefit | (174) | (94) | (170) |
(Loss) profit for the period | 649 | 362 | 652 |
Total comprehensive (loss) income | 649 | 362 | 652 |
Attributable to non-controlling interests | 182 | 101 | 182 |
Chelyabinsk Metallurgical Plant (CMP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Revenue from contracts with customers | 113,020 | 124,372 | 118,557 |
Cost of sales | (101,258) | (101,829) | (102,398) |
Total selling, distribution and operating expenses, net | (11,406) | (11,988) | (11,894) |
Total other income and (expense), net | 4,173 | (5,114) | (506) |
Profit (loss) before tax | 4,529 | 5,441 | 3,759 |
Income tax (expense) benefit | (551) | 1,443 | 544 |
(Loss) profit for the period | 3,978 | 6,884 | 4,303 |
Total comprehensive (loss) income | 3,978 | 6,884 | 4,303 |
Attributable to non-controlling interests | 231 | 345 | 256 |
Southern Urals Nickel Plant (SUNP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Revenue from contracts with customers | 198 | 88 | 102 |
Cost of sales | (54) | (47) | (24) |
Total selling, distribution and operating expenses, net | (218) | (170) | (184) |
Total other income and (expense), net | 235 | 722 | 531 |
Profit (loss) before tax | 161 | 593 | 425 |
Income tax (expense) benefit | (37) | (115) | (85) |
(Loss) profit for the period | 124 | 478 | 340 |
Total comprehensive (loss) income | 124 | 478 | 340 |
Attributable to non-controlling interests | 20 | 76 | 54 |
Beloretsk Metallurgical Plant (BMP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Revenue from contracts with customers | 22,061 | 25,899 | 24,206 |
Cost of sales | (19,263) | (24,095) | (21,464) |
Total selling, distribution and operating expenses, net | (1,749) | (1,867) | (1,634) |
Total other income and (expense), net | 41 | 1,034 | 379 |
Profit (loss) before tax | 1,090 | 971 | 1,487 |
Income tax (expense) benefit | (28) | (34) | (91) |
(Loss) profit for the period | 1,062 | 937 | 1,396 |
Total comprehensive (loss) income | 1,062 | 937 | 1,396 |
Attributable to non-controlling interests | 91 | 83 | 114 |
Korshunov Mining Plant (KMP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Revenue from contracts with customers | 15,776 | 9,989 | 11,492 |
Cost of sales | (6,739) | (6,222) | (6,136) |
Total selling, distribution and operating expenses, net | (4,439) | (4,250) | (5,576) |
Total other income and (expense), net | 1,831 | 2,103 | 2,913 |
Profit (loss) before tax | 6,429 | 1,620 | 2,693 |
Income tax (expense) benefit | (271) | 46 | 212 |
(Loss) profit for the period | 6,158 | 1,666 | 2,905 |
Total comprehensive (loss) income | 6,158 | 1,666 | 2,905 |
Attributable to non-controlling interests | 613 | 166 | 281 |
Urals Stampings Plant (USP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Revenue from contracts with customers | 17,231 | 16,549 | 12,725 |
Cost of sales | (12,330) | (13,131) | (10,089) |
Total selling, distribution and operating expenses, net | (1,157) | (1,099) | (909) |
Total other income and (expense), net | 1,633 | 2,090 | 1,382 |
Profit (loss) before tax | 5,377 | 4,409 | 3,109 |
Income tax (expense) benefit | (323) | (109) | (144) |
(Loss) profit for the period | 5,054 | 4,300 | 2,965 |
Total comprehensive (loss) income | 5,054 | 4,300 | 2,965 |
Attributable to non-controlling interests | 315 | 269 | 183 |
Izhstal [member] | |||
Disclosure of subsidiaries [line items] | |||
Revenue from contracts with customers | 20,208 | 21,173 | 18,696 |
Cost of sales | (17,631) | (19,392) | (16,199) |
Total selling, distribution and operating expenses, net | 919 | (2,498) | (3,486) |
Total other income and (expense), net | (99) | (1,097) | (906) |
Profit (loss) before tax | 3,397 | (1,814) | (1,895) |
Income tax (expense) benefit | 97 | 228 | 194 |
(Loss) profit for the period | 3,494 | (1,586) | (1,701) |
Total comprehensive (loss) income | 3,494 | (1,586) | (1,701) |
Attributable to non-controlling interests | ₽ 348 | ₽ (154) | ₽ (170) |
Material Partly-Owned Subsidi_5
Material Partly-Owned Subsidiaries - Summary of Statements of Financial Position (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of subsidiaries [line items] | ||||
Current assets | ₽ 66,032 | ₽ 72,140 | ||
Non-current assets | 246,473 | 245,485 | ||
Current liabilities | (459,439) | (476,195) | ||
Non-current liabilities | (86,663) | (74,625) | ||
Total equity | (233,597) | (233,195) | ₽ (244,133) | ₽ (252,588) |
Attributable to: | ||||
Equity shareholders of Mechel PAO | (245,228) | (243,041) | ||
Non-controlling interests | 11,631 | 9,846 | ||
Southern Kuzbass Coal Company (SKCC) and subsidiaries [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 74,924 | 49,771 | ||
Non-current assets | 61,772 | 81,868 | ||
Current liabilities | (135,625) | (101,714) | ||
Non-current liabilities | (6,626) | (40,888) | ||
Total equity | 5,555 | 10,963 | ||
Attributable to: | ||||
Equity shareholders of Mechel PAO | 5,828 | 11,157 | ||
Non-controlling interests | (273) | (194) | ||
Kuzbass Power Sales Company (KPSC) [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 4,373 | 3,735 | ||
Non-current assets | 4,316 | 4,187 | ||
Current liabilities | (2,727) | (2,757) | ||
Non-current liabilities | (176) | (31) | ||
Total equity | (5,786) | (5,134) | ||
Attributable to: | ||||
Equity shareholders of Mechel PAO | (4,176) | (3,706) | ||
Non-controlling interests | (1,610) | (1,428) | ||
Chelyabinsk Metallurgical Plant (CMP) [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 46,448 | 38,571 | ||
Non-current assets | 170,004 | 174,639 | ||
Current liabilities | (177,585) | (176,114) | ||
Non-current liabilities | (2,757) | (4,921) | ||
Total equity | (36,110) | (32,175) | ||
Attributable to: | ||||
Equity shareholders of Mechel PAO | (34,021) | (30,314) | ||
Non-controlling interests | (2,089) | (1,861) | ||
Southern Urals Nickel Plant (SUNP) [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 3,301 | 1,507 | ||
Non-current assets | 4,556 | 6,201 | ||
Current liabilities | (93) | (108) | ||
Non-current liabilities | (610) | (204) | ||
Total equity | (7,154) | (7,396) | ||
Attributable to: | ||||
Equity shareholders of Mechel PAO | (6,019) | (6,223) | ||
Non-controlling interests | (1,135) | (1,173) | ||
Beloretsk Metallurgical Plant (BMP) [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 14,127 | 9,594 | ||
Non-current assets | 3,651 | 6,442 | ||
Current liabilities | (5,308) | (4,751) | ||
Non-current liabilities | (261) | (141) | ||
Total equity | (12,209) | (11,144) | ||
Attributable to: | ||||
Equity shareholders of Mechel PAO | (11,156) | (10,182) | ||
Non-controlling interests | (1,053) | (962) | ||
Korshunov Mining Plant (KMP) [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 20,413 | 13,863 | ||
Non-current assets | 23,484 | 23,221 | ||
Current liabilities | (3,001) | (2,336) | ||
Non-current liabilities | (1,098) | (917) | ||
Total equity | (39,798) | (33,831) | ||
Attributable to: | ||||
Equity shareholders of Mechel PAO | (35,836) | (30,462) | ||
Non-controlling interests | (3,962) | (3,369) | ||
Urals Stampings Plant (USP) [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 15,374 | 10,217 | ||
Non-current assets | 19,942 | 19,139 | ||
Current liabilities | (5,504) | (4,870) | ||
Non-current liabilities | (422) | (137) | ||
Total equity | (29,390) | (24,349) | ||
Attributable to: | ||||
Equity shareholders of Mechel PAO | (27,565) | (22,837) | ||
Non-controlling interests | (1,825) | (1,512) | ||
Izhstal [member] | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 4,049 | 5,171 | ||
Non-current assets | 4,405 | 1,803 | ||
Current liabilities | (10,153) | (12,765) | ||
Non-current liabilities | (2,634) | (1,987) | ||
Total equity | 4,333 | 7,778 | ||
Attributable to: | ||||
Equity shareholders of Mechel PAO | 3,908 | 7,010 | ||
Non-controlling interests | ₽ 425 | ₽ 768 |
Material Partly-Owned Subsidi_6
Material Partly-Owned Subsidiaries - Summary of Cash Flow Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of subsidiaries [line items] | |||
Operating | ₽ 57,658 | ₽ 68,118 | ₽ 63,282 |
Investing | (5,921) | (5,647) | (7,138) |
Financing | (48,357) | (63,286) | (55,737) |
Increase (decrease) in cash and cash equivalents, net | 2,487 | (843) | (230) |
Southern Kuzbass Coal Company (SKCC) and subsidiaries [member] | |||
Disclosure of subsidiaries [line items] | |||
Operating | 12,043 | 13,152 | 3,434 |
Investing | (950) | 547 | 8,008 |
Financing | (10,945) | (13,651) | (11,445) |
Increase (decrease) in cash and cash equivalents, net | 148 | 48 | (3) |
Kuzbass Power Sales Company (KPSC) [member] | |||
Disclosure of subsidiaries [line items] | |||
Operating | 243 | 193 | 112 |
Investing | (58) | (97) | (38) |
Financing | (245) | (99) | (45) |
Increase (decrease) in cash and cash equivalents, net | (60) | (3) | 29 |
Chelyabinsk Metallurgical Plant (CMP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Operating | 10,898 | 13,015 | 8,036 |
Investing | (3,522) | (76,283) | (2,950) |
Financing | (7,108) | 63,200 | (4,826) |
Increase (decrease) in cash and cash equivalents, net | 268 | (68) | 260 |
Southern Urals Nickel Plant (SUNP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Operating | (146) | (264) | (211) |
Investing | 163 | 264 | 210 |
Financing | (17) | ||
Increase (decrease) in cash and cash equivalents, net | (1) | ||
Beloretsk Metallurgical Plant (BMP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Operating | (2,482) | (1,891) | (1,221) |
Investing | 2,685 | 1,870 | 1,477 |
Financing | 505 | (169) | (323) |
Increase (decrease) in cash and cash equivalents, net | 708 | (190) | (67) |
Korshunov Mining Plant (KMP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Operating | 2,867 | 1,325 | 500 |
Investing | (2,627) | (1,003) | (329) |
Financing | (240) | (322) | (172) |
Increase (decrease) in cash and cash equivalents, net | (1) | ||
Urals Stampings Plant (USP) [member] | |||
Disclosure of subsidiaries [line items] | |||
Operating | 1,375 | 3,950 | 560 |
Investing | (912) | (1,163) | 949 |
Financing | (199) | (2,829) | (1,590) |
Increase (decrease) in cash and cash equivalents, net | 264 | (42) | (81) |
Izhstal [member] | |||
Disclosure of subsidiaries [line items] | |||
Operating | 2,839 | 1,647 | 751 |
Investing | (72) | (89) | 73 |
Financing | (2,741) | (1,604) | (755) |
Increase (decrease) in cash and cash equivalents, net | ₽ 26 | ₽ (46) | ₽ 69 |
Investments in Associates - Sum
Investments in Associates - Summary of Investments in Associates (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of associates [line items] | ||||
Investment carrying value | ₽ 321 | ₽ 293 | ₽ 283 | ₽ 265 |
TPTU (Mining segment) [member] | ||||
Disclosure of associates [line items] | ||||
Percent of shares held | 40.00% | 40.00% | ||
Investment carrying value | ₽ 208 | ₽ 189 | 184 | 175 |
TRMZ (Mining segment) [member] | ||||
Disclosure of associates [line items] | ||||
Percent of shares held | 25.00% | 25.00% | ||
Investment carrying value | ₽ 113 | ₽ 104 | ₽ 99 | ₽ 90 |
Investments in Associates - S_2
Investments in Associates - Summary of Movements of Financial Instruments (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of associates [line items] | |||
Beginning of period | ₽ 293 | ₽ 283 | ₽ 265 |
Share of (loss) profit | 28 | 10 | 18 |
End of period | 321 | 293 | 283 |
TPTU (Mining segment) [member] | |||
Disclosure of associates [line items] | |||
Beginning of period | 189 | 184 | 175 |
Share of (loss) profit | 19 | 5 | 9 |
End of period | 208 | 189 | 184 |
TRMZ (Mining segment) [member] | |||
Disclosure of associates [line items] | |||
Beginning of period | 104 | 99 | 90 |
Share of (loss) profit | 9 | 5 | 9 |
End of period | ₽ 113 | ₽ 104 | ₽ 99 |
Related Party Disclosures - Sum
Related Party Disclosures - Summary of Transactions with Related Parties (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Purchases | ₽ 1,014 | ₽ 401 | ₽ 497 |
Sales | 282 | 155 | 184 |
Other loss (income) | 138 | (42) | (39) |
Financial assets from | 107 | 57 | |
Financial liabilities to | (969) | (513) | |
Total outstanding, net | (862) | (456) | |
Associates [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases | 110 | 121 | 230 |
Sales | 98 | 103 | 134 |
Other loss (income) | (33) | (6) | |
Financial assets from | 7 | 7 | |
Financial liabilities to | (6) | (13) | |
Total outstanding, net | 1 | (6) | |
Controlling shareholders and entities under control of the Group's controlling shareholders [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases | 904 | 280 | 267 |
Sales | 184 | 52 | 50 |
Other loss (income) | 138 | (9) | ₽ (33) |
Financial assets from | 100 | 50 | |
Financial liabilities to | (963) | (500) | |
Total outstanding, net | ₽ (863) | ₽ (450) |
Related Party Disclosures - Add
Related Party Disclosures - Additional Information (Detail) - RUB (₽) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Purchases of energy and electricity | ₽ 692,000,000 | ||
Short term employee benefits | 592,000,000 | ₽ 561,000,000 | ₽ 613,000,000 |
Share based payments | 0 | ||
Controlling shareholders and entities under control of the Group's controlling shareholders [member] | |||
Disclosure of transactions between related parties [line items] | |||
Amounts receivables | 24,391,000,000 | 24,391,000,000 | |
Cash balance at bank | ₽ 1,509,000,000 | ₽ 703,000,000 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Comparison By Class of Carrying Amount and Fair Value of Group Financial Instruments (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value measurement of liabilities [line items] | ||
Fair value | ₽ 421,179 | ₽ 429,700 |
Carrying amount | 436,825 | 463,342 |
Level 2 of fair value hierarchy [member] | Floating rate loans and borrowings [member] | Financial liabilities measured at amortised cost [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Fair value | 357,276 | 356,444 |
Carrying amount | 370,312 | 384,608 |
Level 2 of fair value hierarchy [member] | Fixed rate loans and borrowings [member] | Financial liabilities measured at amortised cost [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Fair value | 11,169 | 21,852 |
Carrying amount | 11,727 | 23,029 |
Level 2 of fair value hierarchy [member] | Other non-current financial liabilities [member] | Financial liabilities measured at amortised cost [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Fair value | 46,200 | 40,528 |
Carrying amount | 48,303 | 44,510 |
Level 1 of fair value hierarchy [member] | Bond [member] | Financial liabilities measured at amortised cost [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Fair value | 6,534 | 10,876 |
Carrying amount | ₽ 6,483 | ₽ 11,195 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value measurement of assets [abstract] | |||
Trade receivables at fair value | ₽ 459 | ₽ 1,938 | |
Gain for fair value adjustments | ₽ 29 | ||
Loss for fair value adjustments | ₽ 815 | ₽ 1,520 |
Financial Assets and Financia_3
Financial Assets and Financial Liabilities - Schedule of Principal and Interest Amounts Outstanding for Loans and Bonds (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | ||
Long term debt | ₽ 7,205 | ₽ 6,538 |
Short term borrowings and current portion of long Term Debt | 381,317 | 412,294 |
Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current part of long-term loans and borrowings | (368,335) | (398,171) |
Long term debt | 7,205 | 6,538 |
Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Current portion of long-term debt | 368,335 | 398,171 |
Interest payable | 9,014 | 7,749 |
Fines and penalties on overdue amounts | 2,097 | 2,128 |
Short term borrowings and current portion of long Term Debt | ₽ 381,317 | ₽ 412,294 |
Russian rubles [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted average interest rate for the period | 7.90% | 9.30% |
Russian rubles [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted average interest rate for the period | 7.80% | 9.40% |
Russian rubles [member] | Banks and financial institutions [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long term debt | ₽ 239,659 | ₽ 242,499 |
Russian rubles [member] | Banks and financial institutions [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 7.80% | |
Short term borrowings and current portion of long Term Debt | ₽ 1,347 | 3,634 |
Russian rubles [member] | Bonds Issue [Member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long term debt | ₽ 6,370 | ₽ 10,979 |
Russian rubles [member] | Corporate lenders [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 9.30% | 6.70% |
Long term debt | ₽ 43 | ₽ 73 |
Russian rubles [member] | Corporate lenders [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 6.70% | |
Short term borrowings and current portion of long Term Debt | ₽ 0 | ₽ 10 |
Russian rubles [member] | Bottom of range [member] | Banks and financial institutions [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.00% | 5.00% |
Russian rubles [member] | Bottom of range [member] | Banks and financial institutions [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 9.30% | |
Russian rubles [member] | Bottom of range [member] | Bonds Issue [Member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 8.00% | 8.00% |
Russian rubles [member] | Top of range [member] | Banks and financial institutions [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 9.80% | 10.00% |
Russian rubles [member] | Top of range [member] | Banks and financial institutions [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 9.60% | |
Russian rubles [member] | Top of range [member] | Bonds Issue [Member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 11.90% | 12.30% |
U.S. dollars [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted average interest rate for the period | 8.40% | 8.60% |
U.S. dollars [member] | Banks and financial institutions [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long term debt | ₽ 44,725 | ₽ 54,719 |
U.S. dollars [member] | Corporate lenders [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.00% | |
Long term debt | ₽ 0 | ₽ 138 |
U.S. dollars [member] | Bottom of range [member] | Banks and financial institutions [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 3.20% | 3.90% |
U.S. dollars [member] | Top of range [member] | Banks and financial institutions [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 9.00% | 9.90% |
Euro [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted average interest rate for the period | 4.80% | 4.80% |
Euro [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted average interest rate for the period | 1.90% | 1.50% |
Euro [member] | Banks and financial institutions [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Long term debt | ₽ 84,743 | ₽ 96,301 |
Euro [member] | Banks and financial institutions [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Short term borrowings and current portion of long Term Debt | ₽ 524 | ₽ 580 |
Euro [member] | Corporate lenders [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.00% | 3.00% |
Short term borrowings and current portion of long Term Debt | ₽ 0 | ₽ 22 |
Euro [member] | Bottom of range [member] | Banks and financial institutions [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 0.80% | 0.80% |
Euro [member] | Bottom of range [member] | Banks and financial institutions [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.70% | 1.30% |
Euro [member] | Top of range [member] | Banks and financial institutions [member] | Local long-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 7.00% | 7.00% |
Euro [member] | Top of range [member] | Banks and financial institutions [member] | Short-term borrowings [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings interest rate | 1.90% | 2.80% |
Financial Assets and Financia_4
Financial Assets and Financial Liabilities - Scheduled Maturities of the Debt Outstanding (Detail) ₽ in Millions | Dec. 31, 2019RUB (₽) |
Disclosure of detailed information about borrowings [abstract] | |
On demand | ₽ 373,705 |
2020 (current portion) | 7,612 |
2021 | 4,829 |
2022 | 2,292 |
2023 | 14 |
2024 | 49 |
Thereafter | 21 |
Total | ₽ 388,522 |
Financial Assets and Financia_5
Financial Assets and Financial Liabilities - Additional Information (Detail) $ in Thousands, ₽ in Millions | Aug. 23, 2019 | Aug. 22, 2018RUB (₽) | Dec. 31, 2019RUB (₽)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2019USD ($)shares | Jun. 30, 2019RUB (₽) | Jan. 01, 2019RUB (₽) | Jan. 31, 2017RUB (₽) | Nov. 30, 2011 | Nov. 10, 2011RUB (₽) | Nov. 10, 2011USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Carrying value of property, plant and equipment pledged | ₽ 116,717 | ₽ 117,370 | |||||||||||
Carrying value of inventories pledged | 2,931 | 3,472 | |||||||||||
Accounts receivable pledged | ₽ 179 | 1,044 | |||||||||||
Information about restrictions or covenants | The covenants also include, among other restrictions, limitations on: (1) raising of additional borrowings; (2) amount of dividends in common and preferred shares; and (3) amounts that can be spent for capital expenditures, new investments and acquisitions. | The covenants also include, among other restrictions, limitations on: (1) raising of additional borrowings; (2) amount of dividends in common and preferred shares; and (3) amounts that can be spent for capital expenditures, new investments and acquisitions. | |||||||||||
Accounts receivable | ₽ 21,262 | 24,039 | |||||||||||
Loans payable in default | 25,354 | ||||||||||||
Interest payable in default | 1,563 | ||||||||||||
Long-term debt classified as short-term debt | ₽ 220,046 | ||||||||||||
Contractual credit period for sales of goods | 30 days | 30 days | |||||||||||
Loan amount | ₽ 7,992 | 10,240 | ₽ 9,800 | ₽ 28,433 | $ 944,530 | ||||||||
Fair value of pledged assets | 0 | ||||||||||||
Loan partially written off | 2,250 | $ 34,929 | |||||||||||
Finance cost | 38,830 | 42,052 | 47,610 | ||||||||||
Repayment of other current financial liabilities | ₽ 442 | 442 | |||||||||||
Amount reclassified to short term lease liability | 5,480 | 1,320 | |||||||||||
Right-of-use assets | 17,728 | ₽ 10,112 | |||||||||||
Lease Liabilities | ₽ 0 | ₽ 11,552 | |||||||||||
Percentage of Equity Interest Acquistion Offer Received | 34.00% | ||||||||||||
Railway carriage Leases Member [Member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Right-of-use assets | ₽ 4,862 | ||||||||||||
Lease Liabilities | ₽ 4,862 | ||||||||||||
Interest rate risk [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of interest rate risk | 97.00% | 95.00% | 97.00% | ||||||||||
Central Bank of Russia rate [member] | Interest rate risk [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of interest rate risk | 65.00% | 62.00% | 65.00% | ||||||||||
Others [member] | Interest rate risk [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of interest rate risk | 32.00% | 33.00% | 32.00% | ||||||||||
Gazprombank [member] | Key rate of Central Bank of Russia [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Discount rate adjustment on key rate of central bank of Russia to estimate present value of consideration to be transferred up on exercise of put option | 2.00% | 2.00% | |||||||||||
Russian Railways JSC [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Accounts receivable | ₽ 695 | ||||||||||||
Yakutugol [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 100.00% | 100.00% | |||||||||||
Southern Kuzbass Coal Company (SKCC) [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 95.00% | 95.00% | |||||||||||
Shares pledged by subsidiaries | shares | 3 | 3 | |||||||||||
Chelyabinsk Metallurgical Plant (CMP) [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 91.66% | 91.66% | |||||||||||
Rights to receive future revenues or payments pledged | ₽ 6,191 | $ 100,000 | |||||||||||
Beloretsk Metallurgical Plant (BMP) [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 50.00% | 50.00% | |||||||||||
Shares pledged by subsidiaries | shares | 2 | 2 | |||||||||||
Korshunov Mining Plant (KMP) [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 80.00% | 80.00% | |||||||||||
Shares pledged by subsidiaries | shares | 2 | 2 | |||||||||||
Mechel Mining [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 87.50% | 87.50% | |||||||||||
Shares pledged by subsidiaries | shares | 3 | 3 | |||||||||||
Urals Stampings Plant (USP) [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 75.00% | 75.00% | |||||||||||
Shares pledged by subsidiaries | shares | 2 | 2 | |||||||||||
Izhstal [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 25.00% | 25.00% | |||||||||||
Shares pledged by subsidiaries | shares | 1 | 1 | |||||||||||
Port Posiet [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 25.00% | 25.00% | |||||||||||
Shares pledged by subsidiaries | shares | 1 | 1 | |||||||||||
Elgaugol [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 50.99% | 50.99% | |||||||||||
Mecheltrans [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 25.00% | 25.00% | |||||||||||
Fincom Invest OOO [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 100.00% | 100.00% | |||||||||||
Bratsk Ferroalloy Plant (BFP) [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 25.00% | 25.00% | |||||||||||
Port Temryuk [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 25.00% | 25.00% | |||||||||||
Mecheltrans Vostok OOO [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 1.99% | 1.99% | |||||||||||
Elga-road [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of shares pledged by subsidiaries | 1.99% | 1.99% | |||||||||||
Put option [member] | Gazprombank [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Other non-current financial liabilities | ₽ 48,201 | ₽ 44,056 | |||||||||||
Finance cost | ₽ 4,145 | 3,796 | ₽ 4,062 | ||||||||||
Call option [member] | VTB facilities [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Financial liability at fair value | ₽ 815 | ||||||||||||
Bottom of range [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Loan interest rate | 1.00% | ||||||||||||
Top of range [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Loan interest rate | 8.50% | ||||||||||||
U.S. dollars [member] | Currency risk [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of foreign currency risk on sales | 26.00% | 26.00% | |||||||||||
Percentage of foreign currency risk on borrowings | 13.00% | 13.00% | |||||||||||
Euro [member] | Currency risk [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Percentage of foreign currency risk on sales | 11.00% | 11.00% | |||||||||||
Percentage of foreign currency risk on borrowings | 22.00% | 22.00% | |||||||||||
Not later than one year [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Future Lease Payments | ₽ 45 | ||||||||||||
Later than one year and not later than five years [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Future Lease Payments | 110 | ||||||||||||
Later than five years [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Future Lease Payments | 1 | ||||||||||||
Credit facility [member] | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Unused portion under credit facilities | ₽ 514 | ₽ 573 |
Financial Assets and Financia_6
Financial Assets and Financial Liabilities - Summary of Outstanding Balances of Principal Amount of Short-Term and Long-Term Debt by Denominated Currencies and Major Banks (Detail) $ in Thousands, ₽ in Millions | Dec. 31, 2019RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2018USD ($) |
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | ₽ 377,411 | ₽ 408,955 | |
Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 247,419 | 257,195 | |
U.S. dollars [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 44,725 | 54,857 | |
Euro [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 85,267 | 96,903 | |
Gazprombank [member] | Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 139,971 | 142,635 | |
VTB [member] | Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 99,411 | 73,416 | |
VTB [member] | U.S. dollars [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 27,256 | 7,573 | |
VTB [member] | Euro [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 66,145 | 74,794 | |
Sberbank [member] | Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 0 | 25,723 | |
Sberbank [member] | U.S. dollars [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 0 | 23,147 | $ 333,198 |
Bonds [member] | Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 6,370 | 10,979 | |
Exim Bank Of Russia [member] | Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 0 | 3,305 | |
Other banks [member] | Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 1,667 | 1,137 | |
Other banks [member] | U.S. dollars [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 206 | 540 | |
Other banks [member] | Euro [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 606 | 950 | |
BNP [member] | U.S. dollars [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 9,587 | 10,759 | |
BNP [member] | Euro [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 13,793 | 15,752 | |
VEB [member] | U.S. dollars [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 7,000 | 8,794 | |
MCB [member] | U.S. dollars [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 676 | 4,037 | |
Deutsche Bank AG. [Member] | Euro [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 1,150 | 0 | |
Pre-export facility [member] | U.S. dollars [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 0 | 7 | |
ING [member] | Euro [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 2,221 | 2,541 | |
NatWest Markets [member] | Euro [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | 1,352 | 1,549 | |
Commerz Bank [member] | Euro [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Total short-term and long-term debt | ₽ 0 | ₽ 1,317 |
Financial Assets and Financia_7
Financial Assets and Financial Liabilities - Pre-Export Facility Agreement - Additional Information (Detail) $ in Thousands, ₽ in Millions, € in Millions | 12 Months Ended | ||||
Dec. 31, 2019RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Outstanding balance of borrowings | ₽ 377,411 | ₽ 408,955 | |||
Finance income | ₽ 600 | 34,056 | ₽ 633 | ||
VTB facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Finance income | 12,101 | ||||
VTB Euro-denominated [member] | VTB facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Outstanding balance of borrowings | 66,368 | € 897 | |||
Pre-export facility [member] | VTB facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Amount pre-export facility agreement outstanding | 7 | $ 100 | |||
Finance income | ₽ 12,854 |
Financial Assets and Financia_8
Financial Assets and Financial Liabilities - VTB Facilities - Additional Information (Detail) ₽ in Millions, € in Millions | 12 Months Ended | |||
Dec. 31, 2019RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2018EUR (€) | |
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | ₽ 377,411 | ₽ 408,955 | ||
Finance income | 600 | 34,056 | ₽ 633 | |
Russian rubles [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | 247,419 | 257,195 | ||
Russian rubles [member] | VTB [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | ₽ 99,411 | 73,416 | ||
Russian rubles [member] | VTB [member] | Bottom of range [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings interest rate | 7.80% | |||
Russian rubles [member] | VTB [member] | Top of range [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings interest rate | 8.80% | |||
U.S. dollars [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | ₽ 44,725 | 54,857 | ||
U.S. dollars [member] | VTB [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | 27,256 | 7,573 | ||
U.S. dollars [member] | Pre-export facility [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | 0 | 7 | ||
Euro [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | 85,267 | 96,903 | ||
Euro [member] | VTB [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | ₽ 66,145 | 74,794 | ||
Euro [member] | VTB [member] | Bottom of range [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings interest rate | 5.30% | |||
Euro [member] | VTB [member] | Top of range [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings interest rate | 7.00% | |||
VTB facilities [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Finance income | 12,101 | |||
Fines and penalties waived | 9,878 | |||
VTB facilities [member] | VTB Euro-denominated [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | 66,368 | € 897 | ||
VTB facilities [member] | Pre-export facility [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Finance income | 12,854 | |||
VTB facilities [member] | Maturity in 2022 [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Payment obligation | ₽ 30,000 | |||
VTB facilities [member] | Russian rubles [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | ₽ 99,411 | 73,416 | ||
VTB facilities [member] | Russian rubles [member] | VTB Euro-denominated [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | 66,368 | |||
VTB facilities [member] | Russian rubles [member] | Pre-export facility [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | 63,844 | |||
VTB facilities [member] | Russian rubles [member] | Other Purposes [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | 2,524 | |||
VTB facilities [member] | Russian rubles [member] | Maturity in 2022 [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
The adjustment to the basis (reference rate) used for calculation of the interest rate on borrowings | 1.50% | |||
VTB facilities [member] | U.S. dollars [member] | VTB [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | ₽ 27,256 | ₽ 7,573 | ||
Borrowings interest rate | 9.00% | |||
VTB facilities [member] | Euro [member] | VTB Euro-denominated [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | € | € 897 | |||
The adjustment to the basis (reference rate) used for calculation of the interest rate on borrowings | 5.50% | 5.50% | ||
Borrowings, interest rate basis | 1M EURIBOR | |||
VTB facilities [member] | Euro [member] | Pre-export facility [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | € | € 864 | |||
VTB facilities [member] | Euro [member] | Other Purposes [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Outstanding balance of borrowings | € | € 33 |
Financial Assets and Financia_9
Financial Assets and Financial Liabilities - Gazprombank Facilities - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||
Outstanding balance of borrowings | ₽ 377,411 | ₽ 408,955 | |
Finance income | 600 | 34,056 | ₽ 633 |
Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Outstanding balance of borrowings | 247,419 | 257,195 | |
Gazprombank [member] | Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Outstanding balance of borrowings | ₽ 139,971 | 142,635 | |
Borrowings interest rate | 7.80% | ||
Gazprombank facilities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Finance income | ₽ 7,323 | ||
Gazprombank facilities [member] | Maturity in 2022 [member] | Russian rubles [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
The adjustment to the basis (reference rate) used for calculation of the interest rate on borrowings | 1.50% |
Financial Assets and Financi_10
Financial Assets and Financial Liabilities - VTB Facilities - Additional Information (Parenthetical) (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
VTB facilities [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Cash flows arising from settlement of VTB credit facilities | ₽ 5,000 | ₽ 5,000 | ₽ 5,000 |
Financial Assets and Financi_11
Financial Assets and Financial Liabilities - Sberbank Facilities - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019RUB (₽) | Nov. 30, 2019USD ($) | Dec. 31, 2019RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Outstanding balance of borrowings | ₽ 377,411,000,000 | ₽ 408,955,000,000 | |||
Russian rubles [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Outstanding balance of borrowings | 247,419,000,000 | 257,195,000,000 | |||
U.S. dollars [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Outstanding balance of borrowings | 44,725,000,000 | 54,857,000,000 | |||
Sberbank [member] | Russian rubles [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Outstanding balance of borrowings | 0 | 25,723,000,000 | |||
Sberbank [member] | U.S. dollars [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Outstanding balance of borrowings | 0 | 23,147,000,000 | $ 333,198 | ||
Sberbank facilities [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Overdue principal amount | 0 | 0 | |||
Overdue interest amount | ₽ 0 | ₽ 0 | |||
Sberbank facilities [member] | Russian rubles [member] | Maturity in 2022 [member] | Key rate of Central Bank of Russia [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
The adjustment to the basis (reference rate) used for calculation of the interest rate on borrowings | 1.50% | ||||
Sberbank facilities [member] | U.S. dollars [member] | Maturity in 2022 [member] | LIBOR [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
The adjustment to the basis (reference rate) used for calculation of the interest rate on borrowings | 7.00% | ||||
Interest rate basis description | 3M LIBOR | ||||
Interests payable for the U.S. dollar-denominated credit facilities of SKCC not transferred from Sberbank to VTB | ₽ 370,000,000 | $ 5,984 | |||
Ruble Denominated [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interests payable for the ruble-denominated credit facilities of CMP, SKCC and BFP not transferred from Sberbank to VTB | ₽ 182,000,000 |
Financial Assets and Financi_12
Financial Assets and Financial Liabilities - VEB Facility - Additional Information (Detail) $ in Thousands | Dec. 31, 2019RUB (₽) | Dec. 31, 2019USD ($) | Dec. 31, 2018RUB (₽) | Dec. 31, 2018USD ($) | Sep. 30, 2017USD ($) |
Disclosure of detailed information about borrowings [line items] | |||||
Balance under credit facility | ₽ 377,411,000,000 | ₽ 408,955,000,000 | |||
VEB [member] | Maturity in 2022 [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Credit facility available amount | $ | $ 190,000 | ||||
VEB [member] | Elgaugol [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Balance under credit facility | ₽ 7,000,000,000 | $ 113,069 | 8,794,000,000 | $ 126,583 | |
Interest rate | 5.50% | 5.50% | |||
Overdue principal amount | ₽ 0 | ₽ 0 |
Financial Assets and Financi_13
Financial Assets and Financial Liabilities - Bonds - Additional Information (Detail) - Parent [member] - Russian rubles [member] ₽ in Millions | 12 Months Ended | 36 Months Ended |
Dec. 31, 2019 | Dec. 31, 2011RUB (₽)Bonds | |
Disclosure of detailed information about borrowings [line items] | ||
Number of bonds in one issue | Bonds | 5,000,000 | |
Principal amount of bonds | ₽ | ₽ 40,000 | |
Maturity date of bonds | February 2020 - July 2021 | |
Bottom of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate of bonds | 8.00% | |
Top of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate of bonds | 11.90% |
Financial Assets and Financi_14
Financial Assets and Financial Liabilities - Other Loans - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | |||
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments | ₽ 38,830 | ₽ 42,052 | ₽ 47,610 |
Other loans [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Other loans outstanding amount | 31,258 | 41,887 | |
Overdue principal amount | 25,354 | 25,209 | |
Overdue interest payable | 1,563 | 1,726 | |
Fines and penalty on overdue amount | 2,097 | 1,622 | |
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments | ₽ 733 | ₽ 858 | 1,038 |
Working capital financing | ₽ 4,512 | ||
Bottom of range [member] | Other loans [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate on borrowings | 0.80% | ||
Bottom of range [member] | Other loans [member] | Revolving credit agreements [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate on borrowings | 5.30% | ||
Top of range [member] | Other loans [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate on borrowings | 10.90% | ||
Top of range [member] | Other loans [member] | Revolving credit agreements [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate on borrowings | 7.00% |
Financial Assets and Financi_15
Financial Assets and Financial Liabilities - Schedule of Information About Ratios Under Most Significant Loan Agreements with the Russian State-Owned Banks (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mechel's EBITDA to Net Interest Expense [member] | Bottom of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 200.00% | 175.00% |
Actual ratio | 136.00% | 179.00% |
Mechel's EBITDA to Consolidated Financial Expense [member] | Bottom of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 200.00% | 175.00% |
Actual ratio | 140.00% | 182.00% |
Mechel's Net Debt to EBITDA [member] | Top of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 600.00% | 600.00% |
Actual ratio | 885.00% | 639.00% |
Mechel's Total Debt to EBITDA [member] | Top of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 350.00% | 450.00% |
Actual ratio | 851.00% | 625.00% |
Mechel's Cash flow from operating activities to EBITDA [member] | Bottom of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 80.00% | 80.00% |
Actual ratio | 108.00% | 90.00% |
Mechel's EBITDA to Revenue [member] | Bottom of range [member] | ||
Disclosure of covenant ratios [line items] | ||
Requirement ratio | 20.00% | 20.00% |
Actual ratio | 18.00% | 24.00% |
Financial Assets and Financi_16
Financial Assets and Financial Liabilities - Schedule of Information About Remaining Contractual Maturities of Non-derivative Financial Liabilities (Detail) - Non-derivative financial liabilities category [member] - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detail information about remaining contractual maturities of non derivative financial liabilities [line items] | ||
Loans and borrowings, including interest payable | ₽ 389,230 | ₽ 420,727 |
Lease liabilities | 30,304 | 9,739 |
Trade and other payables | 34,852 | 31,715 |
Other financial liabilities | 54,545 | 55,742 |
On demand [member] | ||
Disclosure of detail information about remaining contractual maturities of non derivative financial liabilities [line items] | ||
Loans and borrowings, including interest payable | 373,799 | 406,337 |
Lease liabilities | 8,802 | 1,664 |
Trade and other payables | 20,210 | 15,891 |
Payable in 1 year [member] | ||
Disclosure of detail information about remaining contractual maturities of non derivative financial liabilities [line items] | ||
Loans and borrowings, including interest payable | 7,998 | 7,185 |
Lease liabilities | 3,992 | 5,186 |
Trade and other payables | 14,642 | 15,270 |
Other financial liabilities | 0 | |
Payable in 2 years [member] | ||
Disclosure of detail information about remaining contractual maturities of non derivative financial liabilities [line items] | ||
Loans and borrowings, including interest payable | 5,024 | 4,520 |
Lease liabilities | 3,122 | 908 |
Trade and other payables | 0 | 352 |
Other financial liabilities | 54,450 | |
Payable in 3 years [member] | ||
Disclosure of detail information about remaining contractual maturities of non derivative financial liabilities [line items] | ||
Loans and borrowings, including interest payable | 2,325 | 2,550 |
Lease liabilities | 1,230 | 886 |
Trade and other payables | 186 | |
Other financial liabilities | 38 | 55,742 |
Payable in 4 years [member] | ||
Disclosure of detail information about remaining contractual maturities of non derivative financial liabilities [line items] | ||
Loans and borrowings, including interest payable | 14 | 16 |
Lease liabilities | 643 | 745 |
Trade and other payables | 16 | |
Other financial liabilities | 38 | |
Payable later than 4 years [member] | ||
Disclosure of detail information about remaining contractual maturities of non derivative financial liabilities [line items] | ||
Loans and borrowings, including interest payable | 70 | 119 |
Lease liabilities | 12,515 | ₽ 350 |
Other financial liabilities | ₽ 19 |
Financial Assets and Financi_17
Financial Assets and Financial Liabilities - Schedule of Information About Maximum Exposure to Credit Risk Arising From Financial Assets (Detail) - Credit risk [member] - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about maximum exposure to credit risk arising from financial assets [line items] | ||
Restricted cash (excluding cash on hand) | ₽ 147 | ₽ 51 |
Cash deposits | 1,074 | 494 |
Trade and other receivables | 15,442 | 17,718 |
Other financial assets | 382 | 533 |
Total | 17,045 | 18,796 |
Promissory notes [member] | ||
Disclosure of detailed information about maximum exposure to credit risk arising from financial assets [line items] | ||
Other financial assets | 0 | 212 |
Loans issued [member] | ||
Disclosure of detailed information about maximum exposure to credit risk arising from financial assets [line items] | ||
Other financial assets | 368 | 305 |
Bonds [member] | ||
Disclosure of detailed information about maximum exposure to credit risk arising from financial assets [line items] | ||
Other financial assets | ₽ 14 | ₽ 16 |
Financial Assets and Financi_18
Financial Assets and Financial Liabilities - USD Denominated Assets and Liabilities Represented in RUB (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about maximum exposure to credit risk arising from financial assets [line items] | ||||
Current assets | ₽ 66,032 | ₽ 72,140 | ||
Trade and other receivables | 15,340 | 17,612 | ||
Cash and cash equivalents | 3,509 | 1,803 | ₽ 2,452 | ₽ 1,689 |
Non-current liabilities | (86,663) | (74,625) | ||
Long-term loans and borrowings | (7,205) | (6,538) | ||
Current liabilities | (459,439) | (476,195) | ||
Short-term loans and borrowings | (381,317) | (412,294) | ||
Trade and other payables | (38,391) | (34,800) | ||
Currency risk [member] | U.S. dollars [member] | ||||
Disclosure of detailed information about maximum exposure to credit risk arising from financial assets [line items] | ||||
Current assets | 639 | 157 | ||
Trade and other receivables | 172 | 27 | ||
Cash and cash equivalents | 467 | 130 | ||
Non-current liabilities | (4,667) | |||
Long-term loans and borrowings | (4,667) | |||
Current liabilities | (41,047) | (54,954) | ||
Short-term loans and borrowings | (38,861) | (51,732) | ||
Trade and other payables | ₽ (2,186) | ₽ (3,222) |
Financial Assets and Financi_19
Financial Assets and Financial Liabilities - EUR Denominated Assets and Liabilities Represented in RUB (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about maximum exposure to credit risk arising from financial assets [line items] | ||||
Current assets | ₽ 66,032 | ₽ 72,140 | ||
Trade and other receivables | 15,340 | 17,612 | ||
Cash and cash equivalents | 3,509 | 1,803 | ₽ 2,452 | ₽ 1,689 |
Non-current liabilities | (86,663) | (74,625) | ||
Lease liabilities | (7,002) | (2,413) | ||
Current liabilities | (459,439) | (476,195) | ||
Short-term loans and borrowings | (381,317) | (412,294) | ||
Trade and other payables | (38,391) | (34,800) | ||
Lease liabilities | (10,353) | (5,880) | ||
Currency risk [member] | Euro [member] | ||||
Disclosure of detailed information about maximum exposure to credit risk arising from financial assets [line items] | ||||
Current assets | 171 | 812 | ||
Trade and other receivables | 63 | 510 | ||
Cash and cash equivalents | 108 | 302 | ||
Non-current liabilities | (148) | (219) | ||
Lease liabilities | (148) | (219) | ||
Current liabilities | (88,794) | (101,294) | ||
Short-term loans and borrowings | (86,213) | (98,285) | ||
Trade and other payables | (2,499) | (2,953) | ||
Lease liabilities | ₽ (82) | ₽ (56) |
Financial Assets and Financi_20
Financial Assets and Financial Liabilities - Schedule of Information About Sensitivity to Devaluation (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. dollars [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Increase in exchange rate | 13.00% | 14.00% | 10.00% |
Decrease in exchange rate | (11.00%) | (14.00%) | (10.00%) |
Effect on profit before tax, decrease | ₽ (5,860) | ₽ (7,672) | ₽ (11,785) |
Effect on profit before tax, increase | ₽ 4,958 | ₽ 7,672 | ₽ 11,785 |
Euro [member] | |||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |||
Increase in exchange rate | 13.00% | 14.00% | 10.00% |
Decrease in exchange rate | (11.00%) | (14.00%) | (10.00%) |
Effect on profit before tax, decrease | ₽ (11,540) | ₽ (14,098) | ₽ (2,674) |
Effect on profit before tax, increase | ₽ 9,765 | ₽ 14,098 | ₽ 2,674 |
Financial Assets and Financi_21
Financial Assets and Financial Liabilities - Schedule of Information About Sensitivity to Change of Floating Rates (Detail) - Interest rate risk [member] - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Key rate of the Central Bank of Russia [member] | |||
Disclosure of detailed information about sensitivity to change of floating rates [line items] | |||
Decrease in profit before tax based on floating rates | ₽ (3,116) | ₽ (1,922) | ₽ (2,744) |
Increase in profit before tax based on floating rates | ₽ 3,116 | ₽ 2,563 | ₽ 5,488 |
Percentage of increase in floating rate | 1.25% | 0.75% | 1.00% |
Percentage of decrease in floating rate | (1.25%) | (1.00%) | (2.00%) |
LIBOR [member] | |||
Disclosure of detailed information about sensitivity to change of floating rates [line items] | |||
Decrease in profit before tax based on floating rates | ₽ (145) | ₽ (226) | ₽ (500) |
Increase in profit before tax based on floating rates | ₽ 145 | ₽ 68 | ₽ 250 |
Percentage of increase in floating rate | 0.35% | 0.50% | 0.48% |
Percentage of decrease in floating rate | (0.35%) | (0.15%) | (0.24%) |
EURIBOR [member] | |||
Disclosure of detailed information about sensitivity to change of floating rates [line items] | |||
Decrease in profit before tax based on floating rates | ₽ (126) | ₽ (190) | ₽ (8) |
Increase in profit before tax based on floating rates | ₽ 126 | ₽ 9 | ₽ 16 |
Percentage of increase in floating rate | 0.15% | 0.20% | 0.04% |
Percentage of decrease in floating rate | (0.15%) | (0.01%) | (0.08%) |
Financial Assets and Financi_22
Financial Assets and Financial Liabilities - Schedule of carrying amounts of right-of-use assets recognised movements (Detail) ₽ in Millions | 12 Months Ended |
Dec. 31, 2019RUB (₽) | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | ₽ 10,112 |
Adjustment on initial application of IFRS 16 | 2,698 |
Additions to right-of-use assets | 8,547 |
Depreciation, right-of-use assets | (3,001) |
Disposals of right-of-use assets | (17) |
Impairment loss recognised in profit or loss right-of-use assets | (454) |
Transfer to own property, plant and equipment | (115) |
Exchange differences | (42) |
Ending balance | 17,728 |
Land [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Adjustment on initial application of IFRS 16 | 1,932 |
Additions to right-of-use assets | 200 |
Depreciation, right-of-use assets | (72) |
Disposals of right-of-use assets | (9) |
Impairment loss recognised in profit or loss right-of-use assets | (72) |
Exchange differences | (1) |
Ending balance | 1,978 |
Buildings and constructions [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Adjustment on initial application of IFRS 16 | 681 |
Additions to right-of-use assets | 541 |
Depreciation, right-of-use assets | (138) |
Exchange differences | (23) |
Ending balance | 1,061 |
Operating machinery and equipment [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 643 |
Adjustment on initial application of IFRS 16 | 73 |
Additions to right-of-use assets | 405 |
Depreciation, right-of-use assets | (204) |
Disposals of right-of-use assets | (6) |
Impairment loss recognised in profit or loss right-of-use assets | (19) |
Transfer to own property, plant and equipment | (114) |
Exchange differences | (15) |
Ending balance | 763 |
Transportation vehicles [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Beginning balance | 9,469 |
Adjustment on initial application of IFRS 16 | 12 |
Additions to right-of-use assets | 7,401 |
Depreciation, right-of-use assets | (2,587) |
Disposals of right-of-use assets | (2) |
Impairment loss recognised in profit or loss right-of-use assets | (363) |
Transfer to own property, plant and equipment | (1) |
Exchange differences | (3) |
Ending balance | ₽ 13,926 |
Financial Assets and Financi_23
Financial Assets and Financial Liabilities - Disclosure of Additional Quantitative Information About Leasing Activities (Detail) ₽ in Millions | 12 Months Ended |
Dec. 31, 2019RUB (₽) | |
Disclosure of quantitative information about leases for lessee [abstract] | |
The cash flow effect of sale and leaseback transactions (net increase, consolidated statement of cash flows) | ₽ 248 |
Interest expense on lease liabilities (Note 24.4) | 1,409 |
Expense relating to short-term leases | 1,536 |
Commitments for short-term leases as of December 31 | 62 |
The total cash outflow for leases | ₽ 5,404 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [abstract] | ||
Raw materials | ₽ 13,643 | ₽ 14,980 |
Work in progress | 8,565 | 8,681 |
Finished goods and goods for resale | 17,565 | 19,762 |
Total inventories at the lower of cost and net realisable value | ₽ 39,773 | ₽ 43,423 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventories [abstract] | |||
Amount of write-down of inventories to net realisable value | ₽ 1,763 | ₽ 1,162 | ₽ 470 |
Inventories recognized as expense | ₽ 93,837 | ₽ 115,126 | ₽ 102,613 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trade and other receivables [line items] | ||
Trade receivables | ₽ 21,262 | ₽ 24,039 |
Less allowance for expected credit losses on trade receivables | (6,200) | (6,749) |
Total trade receivables, net | 15,062 | 17,290 |
Other receivables | 2,933 | 3,410 |
Less allowance for expected credit losses on other receivables | (2,655) | (3,088) |
Total other receivables, net | 278 | 322 |
Total accounts receivable, net | 15,340 | 17,612 |
Domestic customers [member] | ||
Trade and other receivables [line items] | ||
Trade receivables | 18,251 | 19,037 |
Foreign customers [member] | ||
Trade and other receivables [line items] | ||
Trade receivables | ₽ 3,011 | ₽ 5,002 |
Trade and Other Receivables -_2
Trade and Other Receivables - Summary of Credit Risk Exposure on Trade Receivables (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other receivables [line items] | ||
Trade receivable | ₽ 21,262 | ₽ 24,039 |
Expected credit losses | (6,200) | (6,749) |
Current [member] | ||
Trade and other receivables [line items] | ||
Trade receivable | 11,907 | 14,734 |
Expected credit losses | (169) | (659) |
30 days [member] | ||
Trade and other receivables [line items] | ||
Trade receivable | 2,154 | 2,178 |
Expected credit losses | (59) | (106) |
31-60 days [member] | ||
Trade and other receivables [line items] | ||
Trade receivable | 504 | 497 |
Expected credit losses | (99) | (62) |
61-90 days [member] | ||
Trade and other receivables [line items] | ||
Trade receivable | 355 | 199 |
Expected credit losses | (126) | (57) |
91-180 days [member] | ||
Trade and other receivables [line items] | ||
Trade receivable | 444 | 334 |
Expected credit losses | (134) | (142) |
181-365 days [member] | ||
Trade and other receivables [line items] | ||
Trade receivable | 659 | 579 |
Expected credit losses | (565) | (377) |
1 year [member] | ||
Trade and other receivables [line items] | ||
Trade receivable | 5,239 | 5,518 |
Expected credit losses | ₽ (5,048) | ₽ (5,346) |
Trade and Other Receivables -_3
Trade and Other Receivables - Summary of Movements in Allowance for Expected Credit Losses on Trade and Other Receivables (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |||
Beginning balance | ₽ (9,837) | ₽ (9,083) | ₽ (33,941) |
Charge for the year | (226) | (791) | (343) |
Utilised amounts | 800 | 575 | 603 |
Reclassified to non-current financial assets (Note 8) | 24,391 | ||
Exchange rate difference | 408 | (538) | 207 |
Ending balance | ₽ (8,855) | ₽ (9,837) | ₽ (9,083) |
Other Current and Non-Current_3
Other Current and Non-Current Assets - Schedule of Other Current and Non Current Assets (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other current assets | ||
Prepayments and advances | ₽ 2,930 | ₽ 4,778 |
Input VAT and other taxes recoverable | 3,970 | 3,758 |
Other current assets | 82 | 137 |
Total prepayments and other current assets | 6,982 | 8,673 |
Other non-current assets | ||
Deferred assets from sale and lease back | 208 | 241 |
Other non-current assets | 345 | 389 |
Total other non-current assets | ₽ 553 | ₽ 630 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of cash and cash equivalents [line items] | ||||
Cash on hand | ₽ 6 | ₽ 8 | ||
Total cash and cash equivalents | 3,602 | 1,894 | ||
Less allowance for expected credit loss | (93) | (91) | ||
Total cash and cash equivalents, net | 3,509 | 1,803 | ₽ 2,452 | ₽ 1,689 |
Russian rubles [member] | ||||
Disclosure of cash and cash equivalents [line items] | ||||
Cash at banks | 1,715 | 360 | ||
U.S. dollars [member] | ||||
Disclosure of cash and cash equivalents [line items] | ||||
Cash at banks | 1,081 | 766 | ||
Euro [member] | ||||
Disclosure of cash and cash equivalents [line items] | ||||
Cash at banks | 640 | 596 | ||
Other currencies [member] | ||||
Disclosure of cash and cash equivalents [line items] | ||||
Cash at banks | ₽ 160 | ₽ 164 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement [line items] | |||
Bank overdrafts deducted from cash and cash equivalents | ₽ 642 | ₽ 1,423 | |
Dividends paid | 1,531 | 1,394 | ₽ 978 |
Acquisition of non-controlling interests in subsidiaries | 0 | 3,358 | |
Fines and penalties on overdue leases | 39 | 10 | 13 |
Interest accrued | 33,159 | 36,660 | 41,528 |
Effect of restructuring of loans | 25 | 33,514 | 264 |
New lease agreements | 11,234 | 1,675 | ₽ 2,295 |
Credit risk [member] | |||
Statement [line items] | |||
Short-term deposits | 1,074 | ₽ 494 | |
Adoption of IFRS 16 [Member] | |||
Statement [line items] | |||
New lease agreements | ₽ 3,259 |
Cash and Cash Equivalents - Rec
Cash and Cash Equivalents - Reconciliation Between the Changes in Liabilities Arising from Financing Activities (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial liabilities [line items] | |||
Beginning of period | ₽ 463,342 | ||
Foreign exchange movement | (19,241) | ₽ 25,775 | ₽ (4,237) |
End of period | 436,825 | 463,342 | |
Loans and Borrowings [member] | |||
Disclosure of financial liabilities [line items] | |||
Beginning of period | 418,832 | 439,893 | 445,809 |
Cash flows | (42,831) | (52,951) | (42,480) |
Foreign exchange movement | (17,636) | 24,167 | (3,942) |
Other changes, including interest | 30,157 | 7,723 | 40,506 |
End of period | 388,522 | 418,832 | 439,893 |
Lease liabilities [member] | |||
Disclosure of financial liabilities [line items] | |||
Beginning of period | 8,293 | 9,354 | 10,596 |
Cash flows | (3,488) | (3,892) | (4,801) |
Foreign exchange movement | (38) | 83 | (67) |
Other changes, including interest | 12,588 | 2,748 | 3,626 |
End of period | 17,355 | 8,293 | 9,354 |
Deferred payments for acquisition of assets [member] | |||
Disclosure of financial liabilities [line items] | |||
Beginning of period | 1,430 | 1,680 | 1,052 |
Cash flows | (341) | (629) | (455) |
Other changes, including interest | 62 | 379 | 1,083 |
End of period | 1,151 | 1,430 | 1,680 |
Effects of sale and lease back transaction [member] | |||
Disclosure of financial liabilities [line items] | |||
Cash flows | 234 | ||
Other changes, including interest | 14 | ||
End of period | 248 | ||
Put option of Gazprombank [member] | |||
Disclosure of financial liabilities [line items] | |||
Beginning of period | 44,056 | 40,260 | 36,198 |
Other changes, including interest | 4,145 | 3,796 | 4,062 |
End of period | 48,201 | 44,056 | 40,260 |
Other current financial liabilities [member] | |||
Disclosure of financial liabilities [line items] | |||
Beginning of period | 734 | ||
Cash flows | (442) | ||
Changes in fair value | (292) | (81) | |
Other changes, including interest | 815 | ||
End of period | 734 | ||
Deferred consideration paid for the acquisition of subsidiaries in prior periods [member] | |||
Disclosure of financial liabilities [line items] | |||
Beginning of period | 381 | 4,010 | 8,032 |
Cash flows | (361) | (3,968) | (3,652) |
Foreign exchange movement | ₽ (20) | 339 | (370) |
End of period | ₽ 381 | ₽ 4,010 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | ₽ 189,879 | ₽ 197,875 | ₽ 204,353 |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | 2,698 | ||
Property, plant and equipment, ending balance | 196,992 | 189,879 | 197,875 |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 2,826 | 2,803 | 2,798 |
Property, plant and equipment, ending balance | 4,748 | 2,826 | 2,803 |
Buildings and constructions [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 36,784 | 40,538 | 41,754 |
Property, plant and equipment, ending balance | 38,572 | 36,784 | 40,538 |
Operating machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 33,520 | 36,766 | 41,429 |
Property, plant and equipment, ending balance | 32,657 | 33,520 | 36,766 |
Transportation vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 12,349 | 13,093 | 12,522 |
Property, plant and equipment, ending balance | 16,373 | 12,349 | 13,093 |
Other equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 287 | 199 | 89 |
Property, plant and equipment, ending balance | 279 | 287 | 199 |
Construction in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 19,666 | 17,912 | 19,552 |
Property, plant and equipment, ending balance | 18,974 | 19,666 | 17,912 |
Mining plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 10,333 | 12,565 | 11,999 |
Property, plant and equipment, ending balance | 10,848 | 10,333 | 12,565 |
Railway Ulak-Elga [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 74,114 | 73,999 | 74,210 |
Property, plant and equipment, ending balance | 74,541 | 74,114 | 73,999 |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 351,950 | 344,803 | 336,174 |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | 3,259 | ||
Additions | 17,439 | 11,474 | 12,412 |
Change in rehabilitation provision | 1,163 | (289) | 83 |
Transfers | 0 | ||
Disposals | (5,874) | (4,725) | (4,228) |
Exchange differences | (684) | 687 | 362 |
Property, plant and equipment, ending balance | 367,253 | 351,950 | 344,803 |
Gross carrying amount [member] | Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 2,941 | 3,095 | 3,049 |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | 2,488 | ||
Additions | 200 | 9 | 6 |
Transfers | (9) | 1 | |
Disposals | (36) | (255) | (12) |
Exchange differences | (86) | 91 | 52 |
Property, plant and equipment, ending balance | 5,498 | 2,941 | 3,095 |
Gross carrying amount [member] | Buildings and constructions [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 80,751 | 80,813 | 77,659 |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | 686 | ||
Additions | 568 | 10 | 363 |
Change in rehabilitation provision | 456 | (187) | 141 |
Transfers | 2,606 | 487 | 2,934 |
Disposals | (241) | (649) | (432) |
Exchange differences | (289) | 277 | 148 |
Property, plant and equipment, ending balance | 84,537 | 80,751 | 80,813 |
Gross carrying amount [member] | Operating machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 121,328 | 117,638 | 114,328 |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | 73 | ||
Additions | 1,585 | 2,423 | 1,531 |
Transfers | 3,176 | 2,750 | 3,360 |
Disposals | (2,415) | (1,734) | (1,713) |
Exchange differences | (240) | 251 | 132 |
Property, plant and equipment, ending balance | 123,507 | 121,328 | 117,638 |
Gross carrying amount [member] | Transportation vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 31,760 | 30,831 | 29,291 |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | 12 | ||
Additions | 7,683 | 2,048 | 3,124 |
Transfers | 262 | 251 | 190 |
Disposals | (2,159) | (1,410) | (1,795) |
Exchange differences | (37) | 40 | 21 |
Property, plant and equipment, ending balance | 37,521 | 31,760 | 30,831 |
Gross carrying amount [member] | Other equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 1,172 | 996 | 822 |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | 0 | ||
Additions | 33 | 83 | 45 |
Transfers | 21 | 97 | 148 |
Disposals | (33) | (32) | (28) |
Exchange differences | (30) | 28 | 9 |
Property, plant and equipment, ending balance | 1,163 | 1,172 | 996 |
Gross carrying amount [member] | Construction in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 21,888 | 19,645 | 21,134 |
Additions | 7,332 | 6,851 | 5,767 |
Transfers | (6,752) | (4,099) | (7,011) |
Disposals | (990) | (509) | (245) |
Exchange differences | (2) | ||
Property, plant and equipment, ending balance | 21,476 | 21,888 | 19,645 |
Gross carrying amount [member] | Mining plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 16,908 | 16,977 | 15,100 |
Additions | 38 | 50 | 1,576 |
Change in rehabilitation provision | 707 | (102) | (58) |
Transfers | (26) | 119 | 362 |
Disposals | (136) | (3) | |
Property, plant and equipment, ending balance | 17,627 | 16,908 | 16,977 |
Gross carrying amount [member] | Railway Ulak-Elga [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 75,202 | 74,808 | 74,791 |
Transfers | 722 | 394 | 17 |
Property, plant and equipment, ending balance | 75,924 | 75,202 | 74,808 |
Depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (162,071) | (146,928) | (131,821) |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | (561) | ||
Depreciation charge | (13,962) | (13,634) | (13,836) |
Disposals | 4,615 | 3,687 | 3,790 |
Reversal of impairment/ (impairment) | 1,341 | (4,840) | (4,891) |
Exchange differences | 377 | (356) | (170) |
Property, plant and equipment, ending balance | (170,261) | (162,071) | (146,928) |
Depreciation, amortisation and impairment [member] | Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (115) | (292) | (251) |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | (556) | ||
Depreciation charge | (72) | ||
Disposals | 25 | 223 | |
Reversal of impairment/ (impairment) | (36) | (43) | (37) |
Exchange differences | 4 | (3) | (4) |
Property, plant and equipment, ending balance | (750) | (115) | (292) |
Depreciation, amortisation and impairment [member] | Buildings and constructions [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (43,967) | (40,275) | (35,905) |
Property Plant And Equipment Right Of Use Assets Adjustments On Initial Application Of Ifrs 16 | (5) | ||
Depreciation charge | (2,919) | (3,550) | (3,747) |
Disposals | 194 | 287 | 302 |
Reversal of impairment/ (impairment) | 615 | (319) | (876) |
Exchange differences | 117 | (110) | (49) |
Property, plant and equipment, ending balance | (45,965) | (43,967) | (40,275) |
Depreciation, amortisation and impairment [member] | Operating machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (87,808) | (80,872) | (72,899) |
Depreciation charge | (6,968) | (7,273) | (7,315) |
Disposals | 2,237 | 1,593 | 1,611 |
Reversal of impairment/ (impairment) | 1,495 | (1,065) | (2,174) |
Exchange differences | 194 | (191) | (95) |
Property, plant and equipment, ending balance | (90,850) | (87,808) | (80,872) |
Depreciation, amortisation and impairment [member] | Transportation vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (19,411) | (17,738) | (16,769) |
Depreciation charge | (3,469) | (2,253) | (2,222) |
Disposals | 2,108 | 1,317 | 1,720 |
Reversal of impairment/ (impairment) | (415) | (709) | (454) |
Exchange differences | 39 | (28) | (13) |
Property, plant and equipment, ending balance | (21,148) | (19,411) | (17,738) |
Depreciation, amortisation and impairment [member] | Other equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (885) | (797) | (733) |
Depreciation charge | (53) | (99) | (72) |
Disposals | 21 | 50 | 22 |
Reversal of impairment/ (impairment) | 10 | (15) | (5) |
Exchange differences | 23 | (24) | (9) |
Property, plant and equipment, ending balance | (884) | (885) | (797) |
Depreciation, amortisation and impairment [member] | Construction in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (2,222) | (1,733) | (1,582) |
Disposals | 30 | 47 | 127 |
Reversal of impairment/ (impairment) | (310) | (536) | (278) |
Property, plant and equipment, ending balance | (2,502) | (2,222) | (1,733) |
Depreciation, amortisation and impairment [member] | Mining plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (6,575) | (4,412) | (3,101) |
Depreciation charge | (186) | (180) | (245) |
Disposals | 170 | 1 | |
Reversal of impairment/ (impairment) | (18) | (2,153) | (1,067) |
Property, plant and equipment, ending balance | (6,779) | (6,575) | (4,412) |
Depreciation, amortisation and impairment [member] | Railway Ulak-Elga [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (1,088) | (809) | (581) |
Depreciation charge | (295) | (279) | (235) |
Disposals | 7 | ||
Property, plant and equipment, ending balance | ₽ (1,383) | ₽ (1,088) | ₽ (809) |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Construction in progress | ₽ 277 | ₽ 547 | |
Borrowings costs capitalised | ₽ 309 | ₽ 492 | ₽ 621 |
Capitalisation rate of borrowing costs eligible for capitalisation | 8.57% | 8.55% | 9.70% |
Contractual commitments to acquire property plant and equipment | ₽ 10,506 | ₽ 11,801 | |
Non-current assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Gain from reversal of impairment | ₽ 1,341 | ||
Impairment loss recognized | ₽ 4,840 | ₽ 4,891 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Property, Plant And Equipment Other than Right-of-use Assets (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | ₽ 189,879 | ₽ 197,875 | ₽ 204,353 |
Property, plant and equipment, ending balance | 196,992 | 189,879 | 197,875 |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 2,826 | 2,803 | 2,798 |
Property, plant and equipment, ending balance | 4,748 | 2,826 | 2,803 |
Buildings and constructions [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 36,784 | 40,538 | 41,754 |
Property, plant and equipment, ending balance | 38,572 | 36,784 | 40,538 |
Operating machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 33,520 | 36,766 | 41,429 |
Property, plant and equipment, ending balance | 32,657 | 33,520 | 36,766 |
Transportation vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 12,349 | 13,093 | 12,522 |
Property, plant and equipment, ending balance | 16,373 | 12,349 | 13,093 |
Other equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 287 | 199 | 89 |
Property, plant and equipment, ending balance | 279 | 287 | 199 |
Construction in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 19,666 | 17,912 | 19,552 |
Property, plant and equipment, ending balance | 18,974 | 19,666 | 17,912 |
Mining plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 10,333 | 12,565 | 11,999 |
Property, plant and equipment, ending balance | 10,848 | 10,333 | 12,565 |
Railway Ulak-Elga [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 74,114 | 73,999 | 74,210 |
Property, plant and equipment, ending balance | 74,541 | 74,114 | 73,999 |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 351,950 | 344,803 | 336,174 |
Additions | 17,439 | 11,474 | 12,412 |
Change in rehabilitation provision | 1,163 | (289) | 83 |
Transfers | 0 | ||
Disposals | (5,874) | (4,725) | (4,228) |
Exchange differences | (684) | 687 | 362 |
Property, plant and equipment, ending balance | 367,253 | 351,950 | 344,803 |
Gross carrying amount [member] | Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 2,941 | 3,095 | 3,049 |
Additions | 200 | 9 | 6 |
Transfers | (9) | 1 | |
Disposals | (36) | (255) | (12) |
Exchange differences | (86) | 91 | 52 |
Property, plant and equipment, ending balance | 5,498 | 2,941 | 3,095 |
Gross carrying amount [member] | Buildings and constructions [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 80,751 | 80,813 | 77,659 |
Additions | 568 | 10 | 363 |
Change in rehabilitation provision | 456 | (187) | 141 |
Transfers | 2,606 | 487 | 2,934 |
Disposals | (241) | (649) | (432) |
Exchange differences | (289) | 277 | 148 |
Property, plant and equipment, ending balance | 84,537 | 80,751 | 80,813 |
Gross carrying amount [member] | Operating machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 121,328 | 117,638 | 114,328 |
Additions | 1,585 | 2,423 | 1,531 |
Transfers | 3,176 | 2,750 | 3,360 |
Disposals | (2,415) | (1,734) | (1,713) |
Exchange differences | (240) | 251 | 132 |
Property, plant and equipment, ending balance | 123,507 | 121,328 | 117,638 |
Gross carrying amount [member] | Transportation vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 31,760 | 30,831 | 29,291 |
Additions | 7,683 | 2,048 | 3,124 |
Transfers | 262 | 251 | 190 |
Disposals | (2,159) | (1,410) | (1,795) |
Exchange differences | (37) | 40 | 21 |
Property, plant and equipment, ending balance | 37,521 | 31,760 | 30,831 |
Gross carrying amount [member] | Other equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 1,172 | 996 | 822 |
Additions | 33 | 83 | 45 |
Transfers | 21 | 97 | 148 |
Disposals | (33) | (32) | (28) |
Exchange differences | (30) | 28 | 9 |
Property, plant and equipment, ending balance | 1,163 | 1,172 | 996 |
Gross carrying amount [member] | Construction in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 21,888 | 19,645 | 21,134 |
Additions | 7,332 | 6,851 | 5,767 |
Transfers | (6,752) | (4,099) | (7,011) |
Disposals | (990) | (509) | (245) |
Exchange differences | (2) | ||
Property, plant and equipment, ending balance | 21,476 | 21,888 | 19,645 |
Gross carrying amount [member] | Mining plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 16,908 | 16,977 | 15,100 |
Additions | 38 | 50 | 1,576 |
Change in rehabilitation provision | 707 | (102) | (58) |
Transfers | (26) | 119 | 362 |
Disposals | (136) | (3) | |
Property, plant and equipment, ending balance | 17,627 | 16,908 | 16,977 |
Gross carrying amount [member] | Railway Ulak-Elga [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 75,202 | 74,808 | 74,791 |
Transfers | 722 | 394 | 17 |
Property, plant and equipment, ending balance | 75,924 | 75,202 | 74,808 |
Depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (162,071) | (146,928) | (131,821) |
Depreciation charge | (13,962) | (13,634) | (13,836) |
Disposals | 4,615 | 3,687 | 3,790 |
Impairment | 1,341 | (4,840) | (4,891) |
Exchange differences | 377 | (356) | (170) |
Property, plant and equipment, ending balance | (170,261) | (162,071) | (146,928) |
Depreciation, amortisation and impairment [member] | Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (115) | (292) | (251) |
Depreciation charge | (72) | ||
Disposals | 25 | 223 | |
Impairment | (36) | (43) | (37) |
Exchange differences | 4 | (3) | (4) |
Property, plant and equipment, ending balance | (750) | (115) | (292) |
Depreciation, amortisation and impairment [member] | Buildings and constructions [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (43,967) | (40,275) | (35,905) |
Depreciation charge | (2,919) | (3,550) | (3,747) |
Disposals | 194 | 287 | 302 |
Impairment | 615 | (319) | (876) |
Exchange differences | 117 | (110) | (49) |
Property, plant and equipment, ending balance | (45,965) | (43,967) | (40,275) |
Depreciation, amortisation and impairment [member] | Operating machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (87,808) | (80,872) | (72,899) |
Depreciation charge | (6,968) | (7,273) | (7,315) |
Disposals | 2,237 | 1,593 | 1,611 |
Impairment | 1,495 | (1,065) | (2,174) |
Exchange differences | 194 | (191) | (95) |
Property, plant and equipment, ending balance | (90,850) | (87,808) | (80,872) |
Depreciation, amortisation and impairment [member] | Transportation vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (19,411) | (17,738) | (16,769) |
Depreciation charge | (3,469) | (2,253) | (2,222) |
Disposals | 2,108 | 1,317 | 1,720 |
Impairment | (415) | (709) | (454) |
Exchange differences | 39 | (28) | (13) |
Property, plant and equipment, ending balance | (21,148) | (19,411) | (17,738) |
Depreciation, amortisation and impairment [member] | Other equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (885) | (797) | (733) |
Depreciation charge | (53) | (99) | (72) |
Disposals | 21 | 50 | 22 |
Impairment | 10 | (15) | (5) |
Exchange differences | 23 | (24) | (9) |
Property, plant and equipment, ending balance | (884) | (885) | (797) |
Depreciation, amortisation and impairment [member] | Construction in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (2,222) | (1,733) | (1,582) |
Disposals | 30 | 47 | 127 |
Impairment | (310) | (536) | (278) |
Property, plant and equipment, ending balance | (2,502) | (2,222) | (1,733) |
Depreciation, amortisation and impairment [member] | Mining plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (6,575) | (4,412) | (3,101) |
Depreciation charge | (186) | (180) | (245) |
Disposals | 170 | 1 | |
Impairment | (18) | (2,153) | (1,067) |
Property, plant and equipment, ending balance | (6,779) | (6,575) | (4,412) |
Depreciation, amortisation and impairment [member] | Railway Ulak-Elga [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (1,088) | (809) | (581) |
Depreciation charge | (295) | (279) | (235) |
Disposals | 7 | ||
Property, plant and equipment, ending balance | (1,383) | (1,088) | ₽ (809) |
Property, plant and equipment other than right-of-use assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 179,767 | ||
Property, plant and equipment, ending balance | 179,264 | 179,767 | |
Property, plant and equipment other than right-of-use assets [member] | Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 2,826 | ||
Property, plant and equipment, ending balance | 2,770 | 2,826 | |
Property, plant and equipment other than right-of-use assets [member] | Buildings and constructions [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 36,784 | ||
Property, plant and equipment, ending balance | 37,511 | 36,784 | |
Property, plant and equipment other than right-of-use assets [member] | Operating machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 32,877 | ||
Property, plant and equipment, ending balance | 31,894 | 32,877 | |
Property, plant and equipment other than right-of-use assets [member] | Transportation vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 2,880 | ||
Property, plant and equipment, ending balance | 2,447 | 2,880 | |
Property, plant and equipment other than right-of-use assets [member] | Other equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 287 | ||
Property, plant and equipment, ending balance | 279 | 287 | |
Property, plant and equipment other than right-of-use assets [member] | Construction in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 19,666 | ||
Property, plant and equipment, ending balance | 18,974 | 19,666 | |
Property, plant and equipment other than right-of-use assets [member] | Mining plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 10,333 | ||
Property, plant and equipment, ending balance | 10,848 | 10,333 | |
Property, plant and equipment other than right-of-use assets [member] | Railway Ulak-Elga [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 74,114 | ||
Property, plant and equipment, ending balance | 74,541 | 74,114 | |
Property, plant and equipment other than right-of-use assets [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 335,648 | ||
Additions | 8,892 | ||
Change in rehabilitation provision | 1,163 | ||
Transfer to own property, plant and equipment | 847 | ||
Disposals | (5,732) | ||
Exchange differences | (631) | ||
Property, plant and equipment, ending balance | 340,187 | 335,648 | |
Property, plant and equipment other than right-of-use assets [member] | Gross carrying amount [member] | Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 2,941 | ||
Transfers | (9) | ||
Disposals | (24) | ||
Exchange differences | (84) | ||
Property, plant and equipment, ending balance | 2,824 | 2,941 | |
Property, plant and equipment other than right-of-use assets [member] | Gross carrying amount [member] | Buildings and constructions [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 80,751 | ||
Additions | 27 | ||
Change in rehabilitation provision | 456 | ||
Transfers | 2,606 | ||
Disposals | (240) | ||
Exchange differences | (263) | ||
Property, plant and equipment, ending balance | 83,337 | 80,751 | |
Property, plant and equipment other than right-of-use assets [member] | Gross carrying amount [member] | Operating machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 119,583 | ||
Additions | 1,180 | ||
Transfers | 3,176 | ||
Transfer to own property, plant and equipment | 752 | ||
Disposals | (2,400) | ||
Exchange differences | (223) | ||
Property, plant and equipment, ending balance | 122,068 | 119,583 | |
Property, plant and equipment other than right-of-use assets [member] | Gross carrying amount [member] | Transportation vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 17,203 | ||
Additions | 282 | ||
Transfers | 262 | ||
Transfer to own property, plant and equipment | 95 | ||
Disposals | (2,045) | ||
Exchange differences | (29) | ||
Property, plant and equipment, ending balance | 15,768 | 17,203 | |
Property, plant and equipment other than right-of-use assets [member] | Gross carrying amount [member] | Other equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 1,172 | ||
Additions | 33 | ||
Transfers | 21 | ||
Disposals | (33) | ||
Exchange differences | (30) | ||
Property, plant and equipment, ending balance | 1,163 | 1,172 | |
Property, plant and equipment other than right-of-use assets [member] | Gross carrying amount [member] | Construction in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 21,888 | ||
Additions | 7,332 | ||
Transfers | (6,752) | ||
Disposals | (990) | ||
Exchange differences | (2) | ||
Property, plant and equipment, ending balance | 21,476 | 21,888 | |
Property, plant and equipment other than right-of-use assets [member] | Gross carrying amount [member] | Mining plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 16,908 | ||
Additions | 38 | ||
Change in rehabilitation provision | 707 | ||
Transfers | (26) | ||
Property, plant and equipment, ending balance | 17,627 | 16,908 | |
Property, plant and equipment other than right-of-use assets [member] | Gross carrying amount [member] | Railway Ulak-Elga [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | 75,202 | ||
Transfers | 722 | ||
Property, plant and equipment, ending balance | 75,924 | 75,202 | |
Property, plant and equipment other than right-of-use assets [member] | Depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (155,881) | ||
Depreciation charge | (10,961) | ||
Transfer to own property, plant and equipment | (732) | ||
Disposals | 4,490 | ||
Impairment | 1,795 | ||
Exchange differences | 366 | ||
Property, plant and equipment, ending balance | (160,923) | (155,881) | |
Property, plant and equipment other than right-of-use assets [member] | Depreciation, amortisation and impairment [member] | Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (115) | ||
Disposals | 22 | ||
Impairment | 36 | ||
Exchange differences | 3 | ||
Property, plant and equipment, ending balance | (54) | (115) | |
Property, plant and equipment other than right-of-use assets [member] | Depreciation, amortisation and impairment [member] | Buildings and constructions [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (43,967) | ||
Depreciation charge | (2,781) | ||
Disposals | 193 | ||
Impairment | 615 | ||
Exchange differences | 114 | ||
Property, plant and equipment, ending balance | (45,826) | (43,967) | |
Property, plant and equipment other than right-of-use assets [member] | Depreciation, amortisation and impairment [member] | Operating machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (86,706) | ||
Depreciation charge | (6,764) | ||
Transfer to own property, plant and equipment | (638) | ||
Disposals | 2,228 | ||
Impairment | 1,514 | ||
Exchange differences | 192 | ||
Property, plant and equipment, ending balance | (90,174) | (86,706) | |
Property, plant and equipment other than right-of-use assets [member] | Depreciation, amortisation and impairment [member] | Transportation vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (14,323) | ||
Depreciation charge | (882) | ||
Transfer to own property, plant and equipment | (94) | ||
Disposals | 1,996 | ||
Impairment | (52) | ||
Exchange differences | 34 | ||
Property, plant and equipment, ending balance | (13,321) | (14,323) | |
Property, plant and equipment other than right-of-use assets [member] | Depreciation, amortisation and impairment [member] | Other equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (885) | ||
Depreciation charge | (53) | ||
Disposals | 21 | ||
Impairment | 10 | ||
Exchange differences | 23 | ||
Property, plant and equipment, ending balance | (884) | (885) | |
Property, plant and equipment other than right-of-use assets [member] | Depreciation, amortisation and impairment [member] | Construction in-progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (2,222) | ||
Disposals | 30 | ||
Impairment | (310) | ||
Property, plant and equipment, ending balance | (2,502) | (2,222) | |
Property, plant and equipment other than right-of-use assets [member] | Depreciation, amortisation and impairment [member] | Mining plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (6,575) | ||
Depreciation charge | (186) | ||
Impairment | (18) | ||
Property, plant and equipment, ending balance | (6,779) | (6,575) | |
Property, plant and equipment other than right-of-use assets [member] | Depreciation, amortisation and impairment [member] | Railway Ulak-Elga [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment, beginning balance | (1,088) | ||
Depreciation charge | (295) | ||
Property, plant and equipment, ending balance | ₽ (1,383) | ₽ (1,088) |
Property, Plant and Equipment_4
Property, Plant and Equipment - Schedule of Property, Plant and Equipment Assets Pledged to Secure Bank Loans and Borrowings Granted to Group (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Net book value | ₽ 116,717 | ₽ 117,370 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | ₽ 16,039 | ₽ 18,331 | ₽ 18,355 |
Ending balance | 12,843 | 16,039 | 18,331 |
Goodwill [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 32,968 | 32,878 | 32,902 |
Exchange differences | (57) | 90 | (24) |
Ending balance | 32,911 | 32,968 | 32,878 |
Goodwill [member] | Depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (16,929) | (14,547) | (14,547) |
Impairment | (3,139) | (2,382) | |
Ending balance | (20,068) | (16,929) | (14,547) |
Mineral licenses [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 32,068 | 33,240 | 36,099 |
Ending balance | 31,075 | 32,068 | 33,240 |
Mineral licenses [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 55,618 | 55,618 | 55,783 |
Disposal | (165) | ||
Ending balance | 55,618 | 55,618 | 55,618 |
Mineral licenses [member] | Depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (23,550) | (22,378) | (19,684) |
Impairment | (6) | (1,190) | |
Amortisation | (987) | (1,172) | (1,504) |
Ending balance | (24,543) | (23,550) | (22,378) |
Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 844 | 880 | |
Ending balance | 809 | 844 | 880 |
Other intangible assets [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 880 | 880 | |
Additions | 880 | ||
Ending balance | 880 | 880 | ₽ 880 |
Other intangible assets [member] | Depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (36) | ||
Amortisation | (35) | (36) | |
Ending balance | ₽ (71) | ₽ (36) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |||
Contractual commitments to acquire intangible assets | ₽ 0 | ₽ 110 | |
Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life | 25 years |
Impairment of Goodwill and Ot_3
Impairment of Goodwill and Other Non-Current Assets - Summary of Goodwill Acquired Through Business Combinations Allocated to CGUs for Impairment Testing (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Yakutugol [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Goodwill | ₽ 10,259 | |
Gross carrying amount [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Goodwill | 15,982 | ₽ 18,421 |
Gross carrying amount [member] | Yakutugol [member] | Mining segment [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Goodwill | 13,399 | 13,399 |
Gross carrying amount [member] | Southern Kuzbass Power Plant (SKPP) [member] | Power segment [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Goodwill | 0 | 2,382 |
Gross carrying amount [member] | Kuzbass Power Sales Company (KPSC) [member] | Power segment [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Goodwill | 1,026 | 1,026 |
Gross carrying amount [member] | Port Posiet [member] | Mining segment [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Goodwill | 756 | 756 |
Gross carrying amount [member] | Chelyabinsk Metallurgical Plant (CMP) [member] | Steel segment [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Goodwill | 589 | 646 |
Gross carrying amount [member] | Southern Kuzbass Coal Company (SKCC) [member] | Mining segment [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Goodwill | 143 | 143 |
Gross carrying amount [member] | Port Temryuk [member] | Mining segment [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Goodwill | ₽ 69 | ₽ 69 |
Impairment of Goodwill and Ot_4
Impairment of Goodwill and Other Non-Current Assets - Additional Information (Detail) ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2019RUB (₽)Segment | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | Dec. 31, 2016RUB (₽) | |
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss on goodwill | ₽ 0 | |||
Impairment loss recognised in profit or loss | ₽ 1,804 | ₽ 7,222 | 6,081 | |
Carrying value of property, plant and equipment | ₽ 196,992 | 189,879 | 197,875 | ₽ 204,353 |
Percentage decrease in future planned revenue | 5.00% | |||
Reversal of impairment | ₽ 2,611 | |||
Reversal of impairment | ₽ 0 | |||
Steel segment [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Number of cash generating units | Segment | 3 | |||
Mining segment [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Number of cash generating units | Segment | 6 | |||
Power segment [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Number of cash generating units | Segment | 2 | |||
Korshunov mining plant KMP [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment of PP&E | 1,631 | |||
Impairment loss recognised in profit or loss | ₽ 549 | 1,151 | ||
Property Plant Equipment Net Of Impairments | 0 | |||
Korshunov mining plant KMP [member] | Mineral licenses [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment of mineral licenses | 640 | |||
Bratsk Ferroalloy Plant (BFP) [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Additional impairment of property, plant and equipment | 702 | 1,258 | ||
Impairment of PP&E | 151 | |||
Impairment loss recognised in profit or loss | 727 | |||
Carrying value of property, plant and equipment | 702 | |||
Izhstal [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss recognised in profit or loss | 2,130 | |||
Carrying value of property, plant and equipment | ₽ 2,871 | |||
Reversal of impairment | 2,611 | |||
Izhstal [member] | Steel segment [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment of PP&E | 781 | |||
Carrying value of property, plant and equipment | 4,199 | 1,799 | ||
Reversal of impairment | 2,611 | |||
Southern Kuzbass Power Plant (SKPP) [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Goodwill written down | ₽ 0 | 2,382 | ||
Impairment loss on goodwill | 2,382 | |||
Impairment loss recognised in profit or loss | 337 | |||
Carrying value of property, plant and equipment | ₽ 1,889 | |||
Percentage decrease in sales prices | 2.50% | |||
Excess of recoverable amount over carrying amount | ₽ 1,390 | |||
Southern Kuzbass Coal Company (SKCC) [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment of property, plant and equipment, mineral license and other intangible assets | ₽ 17,693 | |||
Percentage decrease in sales prices | 1.30% | |||
Excess of recoverable amount over carrying amount | ₽ 6,436 | |||
Yakutugol [member] | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss on goodwill | 3,139 | |||
Impairment of goodwill | 8,283 | |||
Goodwill | ₽ 10,259 | |||
Percentage increase in discount rate | 1.00% | |||
Additional impairment of goodwill | ₽ 1,606 | |||
Percentage decrease in steel selling price resulted in gain | 3.30% | |||
Percentage decrease in steel selling price resulted no gain | 5.50% |
Impairment of Goodwill and Ot_5
Impairment of Goodwill and Other Non-Current Assets - Summary of Inflation and Discount Rates, Range of Discount Rates, Estimated for Each Year for Forecasted Period (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Payable in 1 year [member] | Bottom of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 10.00% | 11.10% |
Payable in 1 year [member] | Top of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 14.90% | 23.60% |
Payable in 1 year [member] | Russia [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 3.70% | 5.00% |
Payable in 1 year [member] | Europeans countries [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 3.10% | 3.30% |
Payable in 2 years [member] | Bottom of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 10.00% | 11.10% |
Payable in 2 years [member] | Top of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 14.90% | 23.60% |
Payable in 2 years [member] | Russia [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 3.40% | 4.30% |
Payable in 2 years [member] | Europeans countries [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 2.70% | 3.30% |
Payable in 3 years [member] | Bottom of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 10.00% | 11.10% |
Payable in 3 years [member] | Top of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 14.90% | 23.60% |
Payable in 3 years [member] | Russia [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 3.80% | 3.80% |
Payable in 3 years [member] | Europeans countries [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 2.80% | 3.10% |
Payable in 4 years [member] | Bottom of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 10.00% | 11.10% |
Payable in 4 years [member] | Top of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 14.90% | 23.60% |
Payable in 4 years [member] | Russia [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 3.80% | 4.00% |
Payable in 4 years [member] | Europeans countries [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 2.80% | 3.10% |
Payable in 5 years [member] | Bottom of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 10.00% | 11.10% |
Payable in 5 years [member] | Top of range [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Pre-tax discount rate, % | 14.90% | 23.60% |
Payable in 5 years [member] | Russia [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 3.80% | 4.00% |
Payable in 5 years [member] | Europeans countries [member] | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Inflation rate | 2.90% | 3.00% |
Impairment of Goodwill and Ot_6
Impairment of Goodwill and Other Non-Current Assets - Summary of Impairment Analysis and Impairment Loss (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | ₽ 1,804 | ₽ 7,222 | ₽ 6,081 |
Bratsk Ferroalloy Plant (BFP) [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | 727 | ||
Korshunov mining plant KMP [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | 549 | 1,151 | |
Izhstal [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | 2,130 | ||
Southern Kuzbass Power Plant (SKPP) [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | 337 | ||
Cash generating units [member] | Impairment of non current assets [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | ₽ 1,276 | 2,269 | 4,552 |
Cash generating units [member] | Bratsk Ferroalloy Plant (BFP) [member] | Impairment of non current assets [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | 151 | ||
Cash generating units [member] | Korshunov mining plant KMP [member] | Impairment of non current assets [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | 1,151 | 2,271 | |
Cash generating units [member] | Izhstal [member] | Impairment of non current assets [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | 781 | ₽ 2,130 | |
Cash generating units [member] | Southern Kuzbass Power Plant (SKPP) [member] | Impairment of non current assets [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified as a result of impairment tests | ₽ 337 |
Impairment of Goodwill and Ot_7
Impairment of Goodwill and Other Non-Current Assets - Summary of Carrying Value of Individual Items of Assets (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified for individual items of assets | ₽ 1,804 | ₽ 7,222 | ₽ 6,081 |
Individual assets [member] | Impairment of non current assets [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified for individual items of assets | 2,571 | 1,529 | |
Individual assets [member] | Southern Kuzbass Coal Company (SKCC) [member] | Impairment of non current assets [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified for individual items of assets | 2,533 | ₽ 1,529 | |
Individual assets [member] | Other Subsidiaries [member] | Impairment of non current assets [member] | |||
Disclosure of information for impairment loss recognised or reversed for individual asset or cash-generating unit [line items] | |||
Impairment loss on non-current assets identified for individual items of assets | ₽ 38 |
Impairment of Goodwill and Ot_8
Impairment of Goodwill and Other Non-Current Assets - Summary of impairment analysis of goodwill (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss on goodwill | ₽ 0 | ||
Cash-generating units [member] | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss on goodwill | ₽ 3,139 | ₽ 2,382 | |
Yakutugol [member] | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss on goodwill | ₽ 3,139 | ||
Southern Kuzbass Power Plant (SKPP) [member] | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Impairment loss on goodwill | ₽ 2,382 |
Impairment of Goodwill and Ot_9
Impairment of Goodwill and Other Non-Current Assets - Summary of impairment analysis of previously recognized impairment loss of non-current assets (Detail) ₽ in Millions | 12 Months Ended |
Dec. 31, 2019RUB (₽) | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |
Gain from reversal of impairment | ₽ 2,611 |
Izhstal [member] | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |
Gain from reversal of impairment | ₽ 2,611 |
Trade and Other Payables - Sche
Trade and Other Payables - Schedule of Trade and Other Payables (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other payables [abstract] | ||
Trade payables | ₽ 27,806 | ₽ 24,288 |
Other payables | 10,585 | 10,512 |
Total trade and other payables | ₽ 38,391 | ₽ 34,800 |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Other Payables (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other payables [abstract] | ||
Wages and salaries payable and other related obligations | ₽ 3,538 | ₽ 3,425 |
Accounts payable for property, plant and equipment | 3,164 | 2,600 |
Dividends payable, common shares | 136 | 146 |
Dividends payable, preferred shares | 80 | 86 |
Other | 3,667 | 4,255 |
Total | ₽ 10,585 | ₽ 10,512 |
Income Tax - Schedule of Major
Income Tax - Schedule of Major Components of Income Tax Expense (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |||
Current income tax charge | ₽ (2,981) | ₽ (2,315) | ₽ (3,397) |
Adjustments in respect of income tax, including income tax penalties and changes in uncertain income tax position | (2,718) | (2,962) | (3,154) |
Deferred tax Relating to origination and reversal of temporary differences | (2,288) | 2,596 | 3,401 |
Income tax expense reported in the consolidated statement of profit (loss) and other comprehensive income | ₽ (7,987) | ₽ (2,681) | ₽ (3,150) |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) ₽ in Millions | Jan. 01, 2020 | Dec. 31, 2019RUB (₽)Subsidiaries | Dec. 31, 2018RUB (₽)Subsidiaries | Dec. 31, 2017Subsidiaries |
Disclosure of income tax expense and deferred taxes [line items] | ||||
Number of subsidiaries in consolidated group of taxpayers | Subsidiaries | 20 | 20 | 20 | |
Termination agreement date | Jan. 1, 2023 | |||
Applicable tax rate | 20.00% | 20.00% | 20.00% | |
Deferred tax assets unrecognized on losses | ₽ 29,600 | ₽ 33,216 | ||
Tax losses amounts unrecognized | 150,460 | 177,639 | ||
Deferred tax liabilities unrecognized for temporary differences related to investment in foreign subsidiaries | 305 | 302 | ||
Probable income tax risks | 8,984 | 6,314 | ||
Possible income tax risks | ₽ 1,663 | ₽ 2,745 | ||
Russia [member] | ||||
Disclosure of income tax expense and deferred taxes [line items] | ||||
Applicable tax rate | 20.00% | 20.00% | 20.00% | |
Switzerland [member] | Changes in tax rates or tax laws enacted or announced [member] | ||||
Disclosure of income tax expense and deferred taxes [line items] | ||||
Applicable tax rate | 13.00% | |||
Kazakhstan [member] | ||||
Disclosure of income tax expense and deferred taxes [line items] | ||||
Applicable tax rate | 20.00% | 20.00% | 20.00% | |
Austria [member] | ||||
Disclosure of income tax expense and deferred taxes [line items] | ||||
Applicable tax rate | 25.00% | 25.00% | 25.00% | |
Germany [member] | ||||
Disclosure of income tax expense and deferred taxes [line items] | ||||
Applicable tax rate | 32.10% | 32.10% | 32.81% | |
Bottom of range [member] | Switzerland [member] | ||||
Disclosure of income tax expense and deferred taxes [line items] | ||||
Applicable tax rate | 10.50% | |||
Top of range [member] | Switzerland [member] | ||||
Disclosure of income tax expense and deferred taxes [line items] | ||||
Applicable tax rate | 11.00% | |||
Elgaugol [member] | ||||
Disclosure of income tax expense and deferred taxes [line items] | ||||
Applicable tax rate | 0.00% | 0.00% | ||
Unremitted earnings [member] | ||||
Disclosure of income tax expense and deferred taxes [line items] | ||||
Deferred tax liabilities unrecognized for temporary difference related to unremitted earnings of consolidated domestic subsidiaries | ₽ 105 | ₽ 0 |
Income Tax - Schedule of Reconc
Income Tax - Schedule of Reconciliation Related to Income Tax Expense (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |||
Profit before tax from continuing operations | ₽ 12,272 | ₽ 16,217 | ₽ 15,720 |
Income tax expense at statutory income tax rate of 20% | (2,454) | (3,243) | (3,144) |
Adjustments in respect of income tax , including income tax penalties and changes in uncertain income tax position. | (2,718) | (2,962) | (3,154) |
Unrecognised current year tax losses and write-off of previously recognised asset on tax losses | (1,277) | 4,008 | 4,783 |
Non-deductible expenses for tax purposes | (1,347) | (3,625) | (1,755) |
Non-deductible interest expense | (229) | (363) | (254) |
Effect of restructuring and expense related to fines and penalties on breach of covenants in credit agreements | 3,460 | 112 | |
Effect of different tax rates | 155 | (12) | 262 |
Change in tax rate | (117) | 56 | |
Income tax expense reported in the consolidated statement of profit (loss) and other comprehensive income | ₽ (7,987) | ₽ (2,681) | ₽ (3,150) |
Income Tax - Schedule of Reco_2
Income Tax - Schedule of Reconciliation Related to Income Tax Expense (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major components of tax expense (income) [abstract] | |||
Statutory income tax rate | 20.00% | 20.00% | 20.00% |
Effective income tax rate | 65.10% | 16.50% | 20.00% |
Income Tax - Schedule of Deferr
Income Tax - Schedule of Deferred Tax Assets and Liabilities (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | ₽ 5,488 | ||
Deferred tax liabilities, beginning balance | (13,506) | ||
Deferred tax assets (liabilities), net, beginning balance | (8,018) | ₽ (11,398) | ₽ (14,780) |
Adjustment on initial application of IFRS 9 | 872 | ||
Adjustment on initial application of IFRS 16 | 28 | ||
Deferred tax assets (liabilities), net adjusted | (7,990) | (10,526) | |
Tax benefit (expense) during the period recognised in profit or loss | (2,288) | 2,596 | 3,401 |
Foreign currency translation effect | 49 | (88) | (19) |
Deferred tax assets, ending balance | 3,648 | 5,488 | |
Deferred tax liabilities, ending balance | (13,877) | (13,506) | |
Deferred tax assets (liabilities), net, ending balance | (10,229) | (8,018) | (11,398) |
Deferred tax assets property, plant and equipment [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | 386 | 759 | 677 |
Adjustment on initial application of IFRS 16 | (86) | ||
Deferred tax assets adjusted | 300 | 759 | |
Tax benefit (expense) during the period recognised in profit or loss | 386 | (373) | 81 |
Foreign currency translation effect | 1 | ||
Deferred tax assets, ending balance | 686 | 386 | 759 |
Deferred tax assets rehabilitation provision [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | 773 | 802 | 694 |
Deferred tax assets adjusted | 773 | 802 | |
Tax benefit (expense) during the period recognised in profit or loss | 295 | (29) | 108 |
Deferred tax assets, ending balance | 1,068 | 773 | 802 |
Deferred tax assets inventory [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | 1,716 | 179 | 193 |
Deferred tax assets adjusted | 1,716 | 179 | |
Tax benefit (expense) during the period recognised in profit or loss | (36) | 1,537 | (9) |
Foreign currency translation effect | (1) | (5) | |
Deferred tax assets, ending balance | 1,679 | 1,716 | 179 |
Deferred tax assets trade and other receivables [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | 790 | 735 | 831 |
Deferred tax assets adjusted | 790 | 735 | |
Tax benefit (expense) during the period recognised in profit or loss | (269) | 52 | (92) |
Foreign currency translation effect | (2) | 3 | (4) |
Deferred tax assets, ending balance | 519 | 790 | 735 |
Deferred tax assets loans and borrowings [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | 320 | 313 | 118 |
Adjustment on initial application of IFRS 9 | 822 | ||
Deferred tax assets adjusted | 320 | 1,135 | |
Tax benefit (expense) during the period recognised in profit or loss | 40 | (815) | 195 |
Deferred tax assets, ending balance | 360 | 320 | 313 |
Deferred tax assets lease liabilities [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | 843 | 983 | 1,121 |
Adjustment on initial application of IFRS 16 | 651 | ||
Deferred tax assets adjusted | 1,494 | 983 | |
Tax benefit (expense) during the period recognised in profit or loss | 1,087 | (141) | (138) |
Foreign currency translation effect | (4) | 1 | |
Deferred tax assets, ending balance | 2,577 | 843 | 983 |
Deferred tax assets trade and other payables and other liabilities [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | 869 | 656 | 700 |
Deferred tax assets adjusted | 869 | 656 | |
Tax benefit (expense) during the period recognised in profit or loss | (340) | 213 | (31) |
Foreign currency translation effect | (13) | ||
Deferred tax assets, ending balance | 529 | 869 | 656 |
Deferred tax assets net operating loss carry-forwards [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | 13,623 | 7,972 | 4,715 |
Deferred tax assets adjusted | 13,623 | 7,972 | |
Tax benefit (expense) during the period recognised in profit or loss | (3,210) | 5,646 | 3,248 |
Foreign currency translation effect | (10) | 5 | 9 |
Deferred tax assets, ending balance | 10,403 | 13,623 | 7,972 |
Deferred tax assets other [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax assets, beginning balance | 74 | 86 | 59 |
Deferred tax assets adjusted | 74 | 86 | |
Tax benefit (expense) during the period recognised in profit or loss | 40 | (15) | 26 |
Foreign currency translation effect | (3) | 3 | 1 |
Deferred tax assets, ending balance | 111 | 74 | 86 |
Deferred tax liabilities property plant and equipment [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax liabilities, beginning balance | (15,468) | (15,869) | (15,665) |
Adjustment on initial application of IFRS 16 | (537) | ||
Deferred tax liabilities adjusted | (16,005) | (15,869) | |
Tax benefit (expense) during the period recognised in profit or loss | (1,830) | 429 | (193) |
Foreign currency translation effect | 30 | (28) | (11) |
Deferred tax liabilities, ending balance | (17,805) | (15,468) | (15,869) |
Deferred tax liabilities mineral licenses [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax liabilities, beginning balance | (6,376) | (6,652) | (7,216) |
Deferred tax liabilities adjusted | (6,376) | (6,652) | |
Tax benefit (expense) during the period recognised in profit or loss | 235 | 276 | 564 |
Deferred tax liabilities, ending balance | (6,141) | (6,376) | (6,652) |
Deferred tax liabilities inventory [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax liabilities, beginning balance | (834) | (801) | (684) |
Deferred tax liabilities adjusted | (834) | (801) | |
Tax benefit (expense) during the period recognised in profit or loss | (160) | (28) | (117) |
Foreign currency translation effect | 5 | (5) | |
Deferred tax liabilities, ending balance | (989) | (834) | (801) |
Deferred tax liabilities trade and other receivables [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax liabilities, beginning balance | (499) | (330) | (124) |
Deferred tax liabilities adjusted | (499) | (330) | |
Tax benefit (expense) during the period recognised in profit or loss | (280) | (160) | (207) |
Foreign currency translation effect | 5 | (9) | 1 |
Deferred tax liabilities, ending balance | (774) | (499) | (330) |
Deferred tax liabilities loans and borrowings [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax liabilities, beginning balance | (3,898) | (112) | (103) |
Adjustment on initial application of IFRS 9 | 50 | ||
Deferred tax liabilities adjusted | (3,898) | (62) | |
Tax benefit (expense) during the period recognised in profit or loss | 1,825 | (3,835) | (9) |
Foreign currency translation effect | (1) | ||
Deferred tax liabilities, ending balance | (2,073) | (3,898) | (112) |
Deferred tax liabilities trade and other payables and other liabilities [member] | |||
Disclosure of Income Taxes [line Items] | |||
Deferred tax liabilities, beginning balance | (337) | (119) | (96) |
Deferred tax liabilities adjusted | (337) | (119) | |
Tax benefit (expense) during the period recognised in profit or loss | (71) | (161) | (25) |
Foreign currency translation effect | 29 | (57) | 2 |
Deferred tax liabilities, ending balance | ₽ (379) | ₽ (337) | ₽ (119) |
Income Tax - Schedule of Defe_2
Income Tax - Schedule of Deferred Tax Assets and Liabilities Recognized (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Major components of tax expense (income) [abstract] | ||||
Deferred tax assets | ₽ 3,648 | ₽ 5,488 | ||
Deferred tax liabilities | (13,877) | (13,506) | ||
Deferred tax liabilities, net | ₽ (10,229) | ₽ (8,018) | ₽ (11,398) | ₽ (14,780) |
Taxes and Similar Charges Pay_3
Taxes and Similar Charges Payable Other Than Income Tax - Schedule of Taxes and Similar Charges Payable Other Than Income Tax (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current payables on social security and taxes other than income tax [abstract] | ||
Payroll taxes | ₽ 3,353 | ₽ 2,424 |
VAT payable | 4,120 | 2,233 |
Property tax | 566 | 511 |
Land lease | 454 | 471 |
Mineral extraction tax | 332 | 226 |
Land tax | 240 | 125 |
Other | 163 | 116 |
Total | ₽ 9,228 | ₽ 6,106 |
Pensions and Other Post-Emplo_3
Pensions and Other Post-Employment Benefit Plans - Additional Information (Detail) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019RUB (₽)Participant | Dec. 31, 2018RUB (₽)Participant | Dec. 31, 2017Participant | |
Disclosure of defined benefit plans [abstract] | |||
Number of active participants | Participant | 47,288 | 48,531 | 48,920 |
Number of pensioners | Participant | 37,814 | 38,751 | 39,427 |
Defined benefit obligations | ₽ | ₽ 4,745 | ₽ 3,806 | |
Other long-term benefit obligations | ₽ | ₽ 803 | ₽ 785 | |
Top of range [member] | |||
Disclosure of defined benefit plans [abstract] | |||
Weighted average duration of the defined benefit obligation and other long-term benefits obligation | 12 years | 12 years |
Pensions and Other Post-Emplo_4
Pensions and Other Post-Employment Benefit Plans - Schedule of Changes in Present Value of Defined Benefit Obligations and Other Long-term Benefits and Fair Value of Plan Assets (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [abstract] | |||
Beginning balance | ₽ (4,591) | ₽ (4,361) | ₽ (4,445) |
Current service cost | (210) | (130) | (142) |
Net interest expense | (293) | (279) | (314) |
Curtailment / settlement gain | 4 | 1 | |
Remeasurement of other long-term benefit obligations | (25) | (492) | 174 |
Past service cost | 70 | ||
Sub-total included in profit or loss | (528) | (827) | (281) |
Benefit paid | 337 | 282 | 296 |
Exchange difference | 101 | (172) | (76) |
Actuarial changes arising from changes in demographic assumptions | (88) | (38) | 51 |
Actuarial changes arising from changes in financial assumptions | (772) | 354 | (69) |
Experience adjustments | (7) | 171 | 163 |
Sub-total included in OCI | (766) | 315 | 69 |
Ending balance | (5,548) | (4,591) | (4,361) |
Present value of defined benefit obligation [member] | |||
Disclosure of defined benefit plans [abstract] | |||
Beginning balance | (4,873) | (4,632) | (4,697) |
Current service cost | (210) | (130) | (142) |
Net interest expense | (297) | (266) | (331) |
Curtailment / settlement gain | 4 | 1 | |
Remeasurement of other long-term benefit obligations | (25) | (492) | 174 |
Past service cost | 70 | ||
Sub-total included in profit or loss | (532) | (814) | (298) |
Benefit paid | 344 | 299 | 313 |
Exchange difference | 117 | (213) | (95) |
Actuarial changes arising from changes in demographic assumptions | (88) | (38) | 51 |
Actuarial changes arising from changes in financial assumptions | (772) | 354 | (69) |
Experience adjustments | (7) | 171 | 163 |
Sub-total included in OCI | (750) | 274 | 50 |
Ending balance | (5,811) | (4,873) | (4,632) |
Plan assets [member] | |||
Disclosure of defined benefit plans [abstract] | |||
Beginning balance | 282 | 271 | 252 |
Net interest expense | 4 | (13) | 17 |
Sub-total included in profit or loss | 4 | (13) | 17 |
Benefit paid | (7) | (17) | (17) |
Exchange difference | (16) | 41 | 19 |
Sub-total included in OCI | (16) | 41 | 19 |
Ending balance | ₽ 263 | ₽ 282 | ₽ 271 |
Pensions and Other Post-Emplo_5
Pensions and Other Post-Employment Benefit Plans - Schedule of Pension Obligations Recognized in Consolidated Statement of Financial Position (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [abstract] | ||||
Current liabilities | ₽ 615 | ₽ 772 | ||
Non-current liabilities | 4,933 | 3,819 | ||
Total net pension obligations | ₽ 5,548 | ₽ 4,591 | ₽ 4,361 | ₽ 4,445 |
Pensions and Other Post-Emplo_6
Pensions and Other Post-Employment Benefit Plans - Schedule of Plan Asset Allocation of Investment Portfolio (Detail) - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of fair value of plan assets [abstract] | ||
Debt instruments | ₽ 142 | ₽ 161 |
Equity instruments | 82 | 74 |
Cash and cash equivalents | 18 | 19 |
Property | 12 | 15 |
Other assets | 9 | 13 |
Total plan assets | ₽ 263 | ₽ 282 |
Pensions and Other Post-Emplo_7
Pensions and Other Post-Employment Benefit Plans - Schedule of Key Actuarial Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Russia [member] | ||
Disclosure of fair value of liability asset of pension obligation [line items] | ||
Discount rate | 6.60% | 8.60% |
Inflation rates | 4.00% | 4.00% |
Rate of compensation increase | 5.10% | 5.00% |
Germany [member] | ||
Disclosure of fair value of liability asset of pension obligation [line items] | ||
Discount rate | 1.10% | 1.90% |
Rate of compensation increase | 4.00% | 4.00% |
Ukraine [member] | ||
Disclosure of fair value of liability asset of pension obligation [line items] | ||
Discount rate | 5.70% | 11.80% |
Inflation rates | 6.70% | 6.60% |
Rate of compensation increase | 9.90% | 9.60% |
Austria [member] | ||
Disclosure of fair value of liability asset of pension obligation [line items] | ||
Discount rate | 0.75% | 1.70% |
Rate of compensation increase | 2.25% | 2.25% |
Pensions and Other Post-Emplo_8
Pensions and Other Post-Employment Benefit Plans - Schedule of Sensitivity Analysis of Defined Benefit Obligations (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Austria [member] | Actuarial assumption of discount rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of increase | (10.20%) | (10.03%) |
Percentage of decrease | 12.20% | 11.98% |
Germany [member] | Actuarial assumption of discount rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of increase | (12.00%) | (12.00%) |
Percentage of decrease | 18.00% | 18.00% |
Russia and Ukraine [member] | Actuarial assumption of discount rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of increase | (9.20%) | (6.75%) |
Percentage of decrease | 11.00% | 7.85% |
Russia and Ukraine [member] | Actuarial assumption of expected rates of inflation [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of increase | 5.90% | 5.09% |
Percentage of decrease | (5.00%) | (4.37%) |
Russia and Ukraine [member] | Actuarial assumption of expected rates of compensation increases [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of increase | 4.00% | 2.48% |
Percentage of decrease | (3.60%) | (2.23%) |
Russia and Ukraine [member] | Actuarial assumption of turnover rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of increase | (7.40%) | (5.98%) |
Percentage of decrease | 7.90% | 7.87% |
Pensions and Other Post-Emplo_9
Pensions and Other Post-Employment Benefit Plans - Schedule of Sensitivity Analysis of Defined Benefit Obligations (Parenthetical) (Detail) | Dec. 31, 2019 |
Actuarial assumption of discount rates [member] | Austria [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Actuarial assumption of discount rates [member] | Germany [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Actuarial assumption of discount rates [member] | Russia and Ukraine [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Actuarial assumption of expected rates of inflation [member] | Russia and Ukraine [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Actuarial assumption of expected rates of compensation increases [member] | Russia and Ukraine [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Actuarial assumption of turnover rates [member] | Russia and Ukraine [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible increase in actuarial assumption | 3.00% |
Percentage of reasonably possible decrease in actuarial assumption | 3.00% |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [line items] | |||
Beginning balance | ₽ 8,541 | ₽ 7,173 | ₽ 6,916 |
Arising during the year | 2,326 | 2,620 | 2,205 |
Utilized | (1,016) | (606) | (1,436) |
Revision in estimated cash flow and discount rate change | 1,180 | (309) | 82 |
Unused amounts reversed | (1,406) | (854) | (963) |
Unwinding of discount | 345 | 302 | 311 |
Exchange differences | (174) | 215 | 58 |
Ending balance | 9,796 | 8,541 | 7,173 |
Current | 4,558 | 4,822 | 3,359 |
Non-current | 5,238 | 3,719 | 3,814 |
Rehabilitation provision [member] | |||
Disclosure of other provisions [line items] | |||
Beginning balance | 3,908 | 3,992 | 3,678 |
Utilized | (30) | (77) | (79) |
Revision in estimated cash flow and discount rate change | 1,180 | (309) | 82 |
Unwinding of discount | 345 | 302 | 311 |
Ending balance | 5,403 | 3,908 | 3,992 |
Current | 165 | 189 | 178 |
Non-current | 5,238 | 3,719 | 3,814 |
Provisions for legal claims [member] | |||
Disclosure of other provisions [line items] | |||
Beginning balance | 3,102 | 2,290 | 746 |
Arising during the year | 1,346 | 1,516 | 2,175 |
Utilized | (264) | (273) | (451) |
Unused amounts reversed | (1,200) | (646) | (180) |
Exchange differences | (150) | 215 | |
Ending balance | 2,834 | 3,102 | 2,290 |
Current | 2,834 | 3,102 | 2,290 |
Provisions on taxes other than income tax, fines and penalties [member] | |||
Disclosure of other provisions [line items] | |||
Beginning balance | 583 | 576 | 760 |
Arising during the year | 980 | 199 | 23 |
Utilized | (1) | ||
Unused amounts reversed | (9) | (188) | (232) |
Exchange differences | (19) | (4) | 26 |
Ending balance | 1,535 | 583 | 576 |
Current | 1,535 | 583 | 576 |
Other provisions [member] | |||
Disclosure of other provisions [line items] | |||
Beginning balance | 948 | 315 | 1,732 |
Arising during the year | 905 | 7 | |
Utilized | (722) | (256) | (905) |
Unused amounts reversed | (197) | (20) | (551) |
Exchange differences | (5) | 4 | 32 |
Ending balance | 24 | 948 | 315 |
Current | ₽ 24 | ₽ 948 | ₽ 315 |
Provisions - Additional Informa
Provisions - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of other provisions [line items] | ||
Legal claim contingency | ₽ 2,195 | |
Other tax claims | 1,535 | ₽ 583 |
Third party [member] | ||
Disclosure of other provisions [line items] | ||
Provisions for legal claims related to disputes over purchases | 741 | |
Third party [member] | Legal proceedings provision [member] | ||
Disclosure of other provisions [line items] | ||
Unused provisions related to disputes over purchases reversed | 741 | |
Tax contingent liability [member] | ||
Disclosure of other provisions [line items] | ||
Possible tax liabilities on taxes other than income tax | ₽ 1,904 | ₽ 1,689 |
Issued Capital and Reserves - A
Issued Capital and Reserves - Additional Information (Detail) - RUB (₽) ₽ / shares in Units, ₽ in Thousands | Jun. 28, 2019 | Jun. 14, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | Jan. 01, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of classes of share capital [line items] | ||||||||
Percentage of withholding tax dividends for residents | 13.00% | |||||||
Percentage of withholding tax dividends for non residents | 15.00% | |||||||
Percentage of withholding tax rate for intercompany dividends | 0.00% | |||||||
Description of withholding tax rate on intercompany dividend | Effective January 1, 2008, intercompany dividends may be subject to a withholding tax of 0% (if at the date of dividends declaration, the dividend-recipient Russian company held a controlling (over 50%) interest in the share capital of the company (Russian or foreign) of the dividend payer for a period over one year and the residence of the dividend distribution foreign company is not included into the Ministry of Finance offshore list. Herewith 0% tax rate is not applicable to the income received by foreign entities that are recognized as Russian residents in accordance with the Russian Tax Code. | |||||||
Dividends declared to non-controlling interest | ₽ 359,000 | |||||||
Dividends declared to shareholders of Mechel PAO | ₽ 1,516,000 | ₽ 1,387,000 | 856,000 | |||||
Dividends declared to shareholders of Mechel PAO, per preferred share | ₽ 18.21 | ₽ 16.66 | ₽ 10.28 | |||||
Carrying value of acquisition of non-controlling interests | ₽ (3,358,000) | |||||||
Reacquisition of own shares value | 63,000 | |||||||
Sale of preferred shares kept as stock value | 63,000 | |||||||
Bottom of range [member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Percentage of controlling interest in the share capital of the company (Russian or foreign) of the dividend payer | 50.00% | |||||||
Subsidiary one [member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Percentage of non-controlling interests acquired | 2.53% | |||||||
Subsidiary two [member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Percentage of non-controlling interests acquired | 0.21% | |||||||
Equity attributable to shareholders of Mechel PAO [member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividends declared to shareholders of Mechel PAO | ₽ 1,516,000 | ₽ 1,387,000 | ₽ 856,000 | 1,516,000 | ₽ 1,387,000 | ₽ 856,000 | ||
Carrying value of acquisition of non-controlling interests | (3,948,000) | |||||||
Reacquisition of own shares value | 63,000 | |||||||
Sale of preferred shares kept as stock value | ₽ 63,000 | |||||||
Non-controlling interest [member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Dividends declared to non-controlling interest | ₽ 30 | ₽ 56 | ₽ 359,000 | 359,000 | ||||
Carrying value of acquisition of non-controlling interests | ₽ 590,000 | |||||||
Treasury shares [member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares issued | (1,018,996) | |||||||
Number of shares outstanding | 1,018,996 | 0 | ||||||
Reacquisition of own shares | 1,018,996 | |||||||
Reacquisition of own shares value | ₽ 63,000 | |||||||
Common shares [member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares | 416,270,745 | |||||||
Nominal value of shares | ₽ 10 | |||||||
Number of additional common shares authorized to issue | 81,698,341 | |||||||
Preferred shares [member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Number of shares | 138,756,915 | |||||||
Nominal value of shares | ₽ 10 | |||||||
Percentage of preferred shares in share capital | 25.00% | |||||||
Percentage of dividend yield paid per one preferred share | 20.00% | |||||||
Number of shares issued | 138,756,915 | |||||||
Number of shares outstanding | 83,963,279 | 83,254,149 | ||||||
Number of treasury shares | 54,793,636 | 55,502,766 | ||||||
Preferred shares [member] | Equity attributable to shareholders of Mechel PAO [member] | ||||||||
Disclosure of classes of share capital [line items] | ||||||||
Sale of preferred shares kept as stock shares | 709,130 | |||||||
Sale of preferred shares kept as stock value | ₽ 63,000 |
Other Income_Expenses - Summary
Other Income/Expenses - Summary of General, Administrative and Other Operating Expenses (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
General, administrative and other operating expenses [abstract] | |||
Wages, salaries and social security costs | ₽ 9,116 | ₽ 10,482 | ₽ 7,769 |
Office and maintenance expenses | 1,231 | 1,213 | 1,211 |
Loss on write-off of non-current assets | 1,103 | 859 | 321 |
Depreciation | 728 | 756 | 605 |
Fines and penalties related to business contracts | 630 | 391 | 303 |
Audit and consulting services | 558 | 941 | 631 |
Provision for legal claims, net | 146 | 870 | 1,995 |
Banking charges and services | 330 | 245 | 271 |
Consumables | 308 | 307 | 276 |
Social expenses | 303 | 387 | 406 |
Business trips | 115 | 139 | 132 |
Expense relating to short-term leases | 83 | 158 | 165 |
Write off of trade and other receivables | 5 | 2 | 109 |
Net result from disposal of non-current assets | 34 | ||
Other | 1,660 | 2,015 | 1,683 |
Total | ₽ 16,316 | ₽ 18,765 | ₽ 15,911 |
Other Income_Expenses - Summa_2
Other Income/Expenses - Summary of Employee Benefits Expenses (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee benefits expense [line items] | |||
Total | ₽ 44,767 | ₽ 43,801 | ₽ 39,599 |
Cost of sales [member] | |||
Employee benefits expense [line items] | |||
Wages and salaries | 23,022 | 21,519 | 20,591 |
Social security costs | 7,485 | 6,887 | 6,438 |
Post-employment benefits | 210 | 130 | 142 |
Selling and distribution expenses [member] | |||
Employee benefits expense [line items] | |||
Wages and salaries | 3,882 | 3,784 | 3,686 |
Social security costs | 1,052 | 999 | 973 |
Administrative and other operating expenses [member] | |||
Employee benefits expense [line items] | |||
Wages and salaries | 7,206 | 8,444 | 6,259 |
Social security costs | ₽ 1,910 | ₽ 2,038 | ₽ 1,510 |
Other Income_Expenses - Summa_3
Other Income/Expenses - Summary of Other Operating Income (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Operating Income [abstract] | |||
Income from fines and penalties related to business contracts | ₽ 160 | ₽ 248 | ₽ 307 |
Net result from disposal of non-current assets | 27 | 128 | |
Curtailment and result of remeasurement of pension obligations | 25 | 93 | 175 |
Gain from sales of scrap materials | 378 | 226 | |
Subsidies received from the governmental authorities as a compensation for operating activities (energy tariffs) | 359 | 496 | |
Other | 533 | 505 | 183 |
Total | ₽ 745 | ₽ 1,711 | ₽ 1,387 |
Other Income_Expenses - Summa_4
Other Income/Expenses - Summary of Finance Income (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance income [abstract] | |||
Effect of restructuring of loans and leases | ₽ 362 | ₽ 33,514 | ₽ 264 |
Interest income on other financial assets | 180 | 207 | 158 |
Income from the discounting of financial instruments | 58 | 15 | 14 |
Remeasurement of fair value of financial instruments | 320 | 197 | |
Total | ₽ 600 | ₽ 34,056 | ₽ 633 |
Other Income_Expenses - Summa_5
Other Income/Expenses - Summary of Finance Costs (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance Costs [abstract] | |||
Interest on loans and borrowings | ₽ 31,750 | ₽ 35,556 | ₽ 40,298 |
Interest expense on lease liabilities | 1,409 | 1,104 | 1,230 |
Fines and penalties on overdue loans and borrowing payments and overdue interest payments | 733 | 858 | 1,086 |
Fines and penalties on overdue leases | 49 | 10 | 75 |
Total finance costs related to loans, borrowings and leases | 33,941 | 37,528 | 42,689 |
Expenses related to discounting of financial instruments | 4,251 | 3,916 | 4,179 |
Unwinding of discount on rehabilitation provision | 345 | 302 | 311 |
Interest expenses under pension liabilities | 293 | 279 | 314 |
Remeasurement of fair value of the call option | 27 | 117 | |
Total | ₽ 38,830 | ₽ 42,052 | ₽ 47,610 |
Other Income_Expenses - Finance
Other Income/Expenses - Finance costs - Additional Information (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance Costs [abstract] | |||
Discounting related to put option associated with sales of share | ₽ 4,145 | ₽ 3,796 | ₽ 4,062 |
Other Income_Expenses - Summa_6
Other Income/Expenses - Summary of Other Income (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other non-operating income [abstract] | |||
Write-off of trade and other payables with expired legal term | ₽ 167 | ₽ 425 | ₽ 516 |
Gain on royalty and other proceeds associated with disposal of Bluestone | 3 | 474 | |
Gain on final settlements from subsidiaries' disposal occurred in previous years | 3 | ||
Gain on forgiveness and restructuring of trade and other payables | 447 | ||
Other income | 72 | 81 | 58 |
Total | ₽ 239 | ₽ 512 | ₽ 1,495 |
Other Income_Expenses - Summa_7
Other Income/Expenses - Summary of Other Expenses (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other non-operating expense [abstract] | |||
Loss on sales and purchases of foreign currencies | ₽ 148 | ₽ 108 | ₽ 114 |
Other expenses | 356 | 206 | 106 |
Total | ₽ 504 | ₽ 314 | ₽ 220 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |
Number of business segments | 3 |
Bottom of range [member] | |
Disclosure of operating segments [line items] | |
Concentration of risk percentage | 10.00% |
Segment Information - Summary o
Segment Information - Summary of Segment Information and Consolidated Assets, Liabilities and Operating Results (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Revenues from contracts with external customers | ₽ 296,567 | ₽ 312,574 | ₽ 299,113 |
Gross profit | ₽ 108,710 | ₽ 134,818 | ₽ 138,757 |
Gross margin, % | 36.70% | 43.10% | 46.40% |
Depreciation and amortisation | ₽ (15,176) | ₽ (13,859) | ₽ (14,227) |
Impairment of goodwill and other non-current assets, net | (1,804) | (7,222) | (6,081) |
Operating profit (loss) | 31,498 | 49,780 | 57,167 |
Share of profit of associates, net | 28 | 10 | 18 |
Finance income | 600 | 34,056 | 633 |
Finance cost | (38,830) | (42,052) | (47,610) |
Income tax expense | (7,987) | (2,681) | (3,150) |
Profit (loss) for the year | 4,285 | 13,536 | 12,570 |
Segment assets | 312,505 | 317,625 | 319,127 |
Segment liabilities | 546,102 | 550,820 | 563,260 |
Investments in associates | 321 | 293 | 283 |
Mining segments [member] | |||
Disclosure of operating segments [line items] | |||
Revenues from contracts with external customers | 92,996 | 96,882 | 100,129 |
Steel segments [member] | |||
Disclosure of operating segments [line items] | |||
Revenues from contracts with external customers | 174,850 | 187,918 | 172,760 |
Power segments [member] | |||
Disclosure of operating segments [line items] | |||
Revenues from contracts with external customers | 28,721 | 27,774 | 26,224 |
Operating segments [member] | Mining segments [member] | |||
Disclosure of operating segments [line items] | |||
Revenues from contracts with external customers | 92,996 | 96,882 | 100,129 |
Inter-segment revenue | 37,710 | 37,549 | 42,286 |
Gross profit | ₽ 68,152 | ₽ 77,199 | ₽ 93,464 |
Gross margin, % | 52.10% | 57.40% | 65.60% |
Depreciation and amortisation | ₽ (8,541) | ₽ (7,621) | ₽ (7,979) |
Impairment of goodwill and other non-current assets, net | (3,688) | (3,684) | (3,800) |
Operating profit (loss) | 23,902 | 32,574 | 48,190 |
Share of profit of associates, net | 28 | 10 | 18 |
Finance income | 524 | 23,387 | 475 |
Intersegment finance income | 386 | 1,071 | 1,335 |
Finance cost | (23,934) | (28,932) | (34,324) |
Intersegment finance cost | (195) | (220) | (222) |
Income tax expense | (94) | (5,940) | (3,410) |
Profit (loss) for the year | 4,955 | 11,489 | 17,210 |
Segment assets | 202,423 | 208,123 | 209,630 |
Segment liabilities | 300,058 | 296,125 | 371,196 |
Investments in associates | 321 | 293 | 283 |
Operating segments [member] | Steel segments [member] | |||
Disclosure of operating segments [line items] | |||
Revenues from contracts with external customers | 174,850 | 187,918 | 172,760 |
Inter-segment revenue | 6,107 | 5,865 | 7,622 |
Gross profit | ₽ 27,525 | ₽ 44,433 | ₽ 34,013 |
Gross margin, % | 15.20% | 22.90% | 18.90% |
Depreciation and amortisation | ₽ (6,153) | ₽ (5,738) | ₽ (5,800) |
Impairment of goodwill and other non-current assets, net | 1,884 | (819) | (2,281) |
Operating profit (loss) | 7,126 | 19,831 | 9,154 |
Finance income | 75 | 9,478 | 150 |
Intersegment finance income | 375 | 395 | 567 |
Finance cost | (14,514) | (12,810) | (12,793) |
Intersegment finance cost | (325) | (1,015) | (1,342) |
Income tax expense | (503) | 531 | (203) |
Profit (loss) for the year | 6,934 | 1,331 | (4,116) |
Segment assets | 100,493 | 97,373 | 100,543 |
Segment liabilities | 233,279 | 247,241 | 184,952 |
Operating segments [member] | Power segments [member] | |||
Disclosure of operating segments [line items] | |||
Revenues from contracts with external customers | 28,721 | 27,774 | 26,224 |
Inter-segment revenue | 15,606 | 15,471 | 16,338 |
Gross profit | ₽ 13,190 | ₽ 12,571 | ₽ 12,724 |
Gross margin, % | 29.80% | 29.10% | 29.90% |
Depreciation and amortisation | ₽ (482) | ₽ (500) | ₽ (448) |
Impairment of goodwill and other non-current assets, net | (2,719) | ||
Operating profit (loss) | 1,548 | (3,240) | 1,267 |
Finance income | 1 | 1,191 | 8 |
Intersegment finance income | 30 | 41 | 49 |
Finance cost | (382) | (310) | (493) |
Intersegment finance cost | (271) | (272) | (387) |
Income tax expense | (333) | 83 | (229) |
Profit (loss) for the year | 531 | (2,544) | 228 |
Segment assets | 7,610 | 7,519 | 10,417 |
Segment liabilities | 9,432 | 9,469 | 9,808 |
Elimination of intersegment amounts [member] | |||
Disclosure of operating segments [line items] | |||
Inter-segment revenue | (59,423) | (58,885) | (66,246) |
Gross profit | (157) | 615 | (1,444) |
Operating profit (loss) | (1,078) | 615 | (1,444) |
Intersegment finance income | (791) | (1,507) | (1,951) |
Intersegment finance cost | 791 | 1,507 | 1,951 |
Income tax expense | (7,057) | 2,645 | 692 |
Profit (loss) for the year | (8,135) | 3,260 | (752) |
Segment assets | 1,979 | 4,610 | (1,463) |
Segment liabilities | ₽ 3,333 | ₽ (2,015) | ₽ (2,696) |
Segment Information - Summary_2
Segment Information - Summary of Group's Revenues Segregated Between Domestic and Export Sales (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Group's Revenues Segregated Between Domestic and Export Sales [Line Items] | |||
Revenue | ₽ 296,567 | ₽ 312,574 | ₽ 299,113 |
Domestic - Russia [member] | |||
Disclosure of Group's Revenues Segregated Between Domestic and Export Sales [Line Items] | |||
Revenue | 171,215 | 178,880 | 176,906 |
Domestic - other [member] | |||
Disclosure of Group's Revenues Segregated Between Domestic and Export Sales [Line Items] | |||
Revenue | 28,469 | 29,666 | 23,445 |
Country of domestic countries [member] | |||
Disclosure of Group's Revenues Segregated Between Domestic and Export Sales [Line Items] | |||
Revenue | 199,684 | 208,546 | 200,351 |
Export [member] | |||
Disclosure of Group's Revenues Segregated Between Domestic and Export Sales [Line Items] | |||
Revenue | ₽ 96,883 | ₽ 104,028 | ₽ 98,762 |
Segment Information - Summary_3
Segment Information - Summary of Group's Total Revenues from External Customers by Geographic Area (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of External Customers by Geographic Area [Line Items] | |||
Revenue based on location of the customer | ₽ 296,567 | ₽ 312,574 | ₽ 299,113 |
External customers by geographic area [member] | |||
Disclosure of External Customers by Geographic Area [Line Items] | |||
Revenue based on location of the customer | 296,567 | 312,574 | 299,113 |
External customers by geographic area [member] | Russia [member] | |||
Disclosure of External Customers by Geographic Area [Line Items] | |||
Revenue based on location of the customer | 171,344 | 178,997 | 177,005 |
External customers by geographic area [member] | Asia [member] | |||
Disclosure of External Customers by Geographic Area [Line Items] | |||
Revenue based on location of the customer | 63,187 | 61,840 | 63,182 |
External customers by geographic area [member] | Europe [member] | |||
Disclosure of External Customers by Geographic Area [Line Items] | |||
Revenue based on location of the customer | 38,334 | 44,263 | 36,605 |
External customers by geographic area [member] | CIS [member] | |||
Disclosure of External Customers by Geographic Area [Line Items] | |||
Revenue based on location of the customer | 21,465 | 23,877 | 19,346 |
External customers by geographic area [member] | Middle East [member] | |||
Disclosure of External Customers by Geographic Area [Line Items] | |||
Revenue based on location of the customer | 1,983 | 3,130 | 2,212 |
External customers by geographic area [member] | USA [member] | |||
Disclosure of External Customers by Geographic Area [Line Items] | |||
Revenue based on location of the customer | 155 | 258 | 286 |
External customers by geographic area [member] | Other regions [member] | |||
Disclosure of External Customers by Geographic Area [Line Items] | |||
Revenue based on location of the customer | ₽ 99 | ₽ 209 | ₽ 477 |
Segment Information - Summary_4
Segment Information - Summary of Carrying Amounts of Mineral Licenses and Property, Plant and Equipment Pertaining to Group's Major Operations (Detail) - Operating segments [member] - RUB (₽) ₽ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of geographical areas [line items] | ||
Carrying amounts of mineral licenses and property, plant and equipment pertaining to major operations | ₽ 228,067 | ₽ 221,947 |
Russia [member] | ||
Disclosure of geographical areas [line items] | ||
Carrying amounts of mineral licenses and property, plant and equipment pertaining to major operations | 225,755 | 219,504 |
Germany [member] | ||
Disclosure of geographical areas [line items] | ||
Carrying amounts of mineral licenses and property, plant and equipment pertaining to major operations | 1,225 | 1,532 |
Austria [member] | ||
Disclosure of geographical areas [line items] | ||
Carrying amounts of mineral licenses and property, plant and equipment pertaining to major operations | 677 | 637 |
Czech Republic [member] | ||
Disclosure of geographical areas [line items] | ||
Carrying amounts of mineral licenses and property, plant and equipment pertaining to major operations | 237 | 224 |
Other countries [member] | ||
Disclosure of geographical areas [line items] | ||
Carrying amounts of mineral licenses and property, plant and equipment pertaining to major operations | ₽ 173 | ₽ 50 |
Segment Information - Summary_5
Segment Information - Summary of Group's Revenues from External Customers by Major Products (Detail) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of products and services [line items] | |||
Revenue | ₽ 296,567 | ₽ 312,574 | ₽ 299,113 |
Mining segments [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 92,996 | 96,882 | 100,129 |
Mining segments [member] | Coal and middlings [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 71,970 | 80,022 | 84,341 |
Mining segments [member] | Coke and chemical products [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 17,970 | 14,205 | 13,747 |
Mining segments [member] | Iron ore concentrate [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 1,179 | 839 | 220 |
Mining segments [member] | Other [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 1,877 | 1,816 | 1,821 |
Steel segments [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 174,850 | 187,918 | 172,760 |
Steel segments [member] | Other [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 5,236 | 6,311 | 7,630 |
Steel segments [member] | Long steel products [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 97,692 | 105,722 | 96,768 |
Steel segments [member] | Hardware [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 27,086 | 30,040 | 27,578 |
Steel segments [member] | Flat steel products [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 23,371 | 22,786 | 22,505 |
Steel segments [member] | Forgings and stampings [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 14,818 | 15,848 | 12,247 |
Steel segments [member] | Semi-finished steel products [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 137 | 54 | 492 |
Steel segments [member] | Ferrosilicon [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 3,229 | 3,927 | 2,807 |
Steel segments [member] | Steel pipes [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 3,281 | 3,230 | 2,733 |
Power segments [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 28,721 | 27,774 | 26,224 |
Power segments [member] | Other [member] | |||
Disclosure of products and services [line items] | |||
Revenue | 1,756 | 1,765 | 1,927 |
Power segments [member] | Electricity [member] | |||
Disclosure of products and services [line items] | |||
Revenue | ₽ 26,965 | ₽ 26,009 | ₽ 24,297 |