RAO Unified Energy System

[Copperfield]

Chubais sees OGK issue resolved after December 2 govt meeting

http://www.prime-tass.com/news/show.asp?topicid=61&id=353090

MOSCOW, June 28 (Prime-Tass) -- The issue of establishing wholesale generating companies (OGKs) in Russia may be tackled after the government’s December 2 meeting, the Chief Executive of Russia’s power grid monopoly UES Anatoly Chubais told reporters Monday.

He was commenting on Prime Minister Mikhail Fradkov statement last week that a decision on the establishment and sale of OGKs would be delayed until the year-end. Chubais said that “this is not good news for those who are pushing for power sector reform.”

The news caused Russian stocks to lose U.S. $500 million in ten minutes, he added.

But Chubais admitted that reform of the Russian power sector would only be possible with the firm backing of the government.

“If the government says it needs six months to decide on OGKs, then we will do our utmost to help it come to a decision,” Chubais said.

UES had planned that the issues concerning the establishment and sale of OGKs would be finalized on June 25 at a meeting of the board of directors of UES.

But the governmental directive on OGKs for government representatives on the company’s board was not approved before the meeting took place. Fradkov said last week that the government was still undecided as to how the OGKs were to be created, reiterating that the issue should be thought through carefully.

According to the power sector restructuring plan, of the ten OGKs that are to be set up on the basis of the country’s largest power plants, the government will retain control of the four that will incorporate hydroelectric power stations, while stakes in the remaining six OGKs, created on the basis of thermal power plants, will be sold.

UES’ strategy and restructuring committee recommends that the charter capital of OGK-1, OGK-2, OGK-4 and OGK-6 be set up with cash, while OGK-3 and OGK-5, with cash, shares of UES’ subsidiaries, and UES’ property.

It was preliminary decided that OGK-5 is to be sold first. (29.0256 rubles – U.S.$ 1) End

28.06.2004 19:34