Mechel PAO (NYSE:MTL) has decided to exit the project for the development of the Elga coalfield after failing to find funds to buy outGazprombank (Joint-stock Company) stake, RBC reported, citing sources close to the company and its creditors. Mechel has decided not to use its right of first refusal to buy out Gazprombank's stake in the project and is ready to sell the 51% it controls. A-Property, a company owned by the co-founder of Yota, is a potential buyer. Over the summer, A-Property sent the Federal Antimonopoly Service a request for permission to purchase Gazprombank's 49% stake. In line with the shareholder agreement, the bank sent Mechel an offer for the purchase of its stake (34% in Elga for RUB 31 billion plus an option for the remaining 15%). Mechel accepted the offer, the deadline for which is January 20, 2020. The company failed to find money for the deal, however, and decided to withdraw from the project. The sale of its stake will help Mechel decrease its debt, which is currently over 400 billion rubles, but the deal is far from ready, one source told RBC. Mechel has not commented on the situation.