Friday, January 6, 2012

$730M fed loan to Russian-owned steel firm withdrawn after GOP challenge

The Detroit News reports this afternoon that the Obama administration is canceling subsidies to Russian steel firm Severstal for production of advanced high strength steel for autos in Dearborn, Michigan. Pricetag: $730 million - Michelle Malkin

GOP watchdogs... raised questions about the deal last fall.
“This announcement is a victory for taxpayers and steel manufacturers in Indiana,” he said in a statement. “The Severstal loan commitment never passed the sniff test, as multiple producers are already manufacturing this high strength steel without taxpayer financing.”
The rejection of the Severstal financing also comes amid wider GOP criticism of DOE loan and loan guarantee programs following the collapse of solar panel manufacturer Solyndra last year.