Russia to cede 25% of electricity grid to foreign investors

Deals

The head of Russia’s electricity monopoly Unified Energy System (UES) said in an interview with a British newspaper Wednesday that Russia would be prepared to turn over 25% of its electricity sector to foreign investors.

“In the competitive part of the market, there is no limit on foreign control,” Anatoly Chubais told the Financial Times. “I believe that a minimum of two and a maximum of five strategic foreign companies will own Russian [power] generation businesses, that is up to 25%.” Chubais said that he wanted to raise “much, much more than $15 billion” to build new power stations and upgrade aging ones.

The newspaper quoted the businessman as saying that listings for several electricity companies, as well as the sale of stakes to strategic investors, including foreign energy companies such as Finland’s Fortum and Italy’s Enel, had already raised about $8 billion. Chubais said a stake in OGK-4, a wholesale generating company, would be sold at auction Friday in an effort to raise about $1.8 billion. The head of Russia’s electricity monopoly has been touring Europe with a road show to attract investors into the Russian power sector since early this week. (rian.ru)

ADVERTISEMENT

European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.