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Czech power giant CEZ inks a partnership agreement in Russia

The most profitable Czech company, the power giant CEZ, inked a strategic partnership agreement with Russian state- controlled power companies in Moscow Friday with the aim of entering the Russian market, CEZ spokesman Ladislav Kriz confirmed.

The agreement with former Russian monopoly RAO JES and its TGK-4 subsidiary is the first step CEZ took towards a joint enterprise with TGK-4 and thus a presence on the growing Russian electricity market. „It is preliminary at this point. It does not mean entering the market yet,” Kriz said of the agreement. CEZ would first work with the Russian partner in building a steam- gas unit at a power plant 200 kilometer south of Moscow. The Czech power giant would also take part in refurbishing its existing units. Later plans for the joint venture would include constructing two brown-coal-fired units at the same plant. The agreement is one of several deals signed in Moscow during Czech President Vaclav Klaus' visit, on which he is accompanied by dozens of Czech businessmen. The fast-growing Central European power giant has stakes in Bulgaria, Romania and Bosnia and is scouting the region for more electricity-related buys. (monstersandcritics.com)