Magnitogorsk Iron & Steel Works has received approval for an emissions reduction project that will allow it to sell about €70M ($94M) worth of carbon credits until 2013.

Russia has approved 33 emissions reduction projects since last summer, allowing companies in the world’s third largest polluting nation to earn carbon credits under the Kyoto Protocol.

The approval will allow the company, also known as MMK, to sell emissions reduction units (ERUs) after it replaced its open-hearth production with electric furnace steelmaking. This shift will allow it to reduce CO2 emissions by 7Mt from 2008-2012.

The move has also increased high quality output and reduced energy consumption at Russia’s third largest steelmaker.

“By replacing the outdated open-hearth furnace technology the company’s capacity to produce high quality electrical steel (including profiled and slab grades) has increased from 2Mt to 4Mt,” it said in a statement.

MMK’s partner in the joint implementation project is the Carbon Trade & Finance joint venture operated by Gazprombank and Germany’s Commerzbank.