"Sidor's recovery plan is supported by a promissory note we are asking to the Central Bank of Venezuela and a loan from the Russian oil company Gazprom totaling USD 200 million each," said Carlos De Oliveira, the executive president of the steelmaker company.

The loan would be used to pay outstanding commitments, purchase inputs and import semi-processed products (slabs and billets), as reported by the Venezuelan pro-government newspaper Correo del Caroní.

"We are in the middle of negotiations. We expect that by the end of this week or early next week, we will have a positive outcome in both negotiations," he said.

The priority is to supply the domestic market for rebars and wide rods.