Russian Oligarch Tries to Cash In on Obama’s Crony Capitalism

Alexi MordashThe Department of Energy announced on Friday it would not complete a low-interest, $730 million loan to Severstal North America, after it had given the company a conditional commitment in July under its Advanced Technology Vehicles Manufacturing program.

DOE gave no reason for its disapproval of the loan, but it had come under scrutiny about its judgment after the collapse of solar company Solyndra, which was lent $535 million in taxpayer dollars. House Oversight and Government Reform Committee Chairman Darrell Issa called upon Energy Secretary Stephen Chu to revisit the Severstal project – which would modernize its facility in Dearborn, Mich. to produce so-called advanced high-strength steel (AHSS) – because the company “had ample means to carry out the project” and had “apparently no need for federal financing,” among other reasons. Severstal N.A. is a wholly owned subsidiary of OAO Severstal, owned by Russian tycoon Alexei Mordashov (in …