Federal authorities would not like to see Finland's Fortum among bidders for a stake in TGK-1, RAO UES of Russia’s member of board Alexander Chikunov says.
Photo: Vyacheslav Reutov
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Finns Not Welcome to Buy Power Plant in North-West
Federal authorities are reluctant to sell the TGK-1 power generating company to Finland’s Fortum, the RAO UES of Russia power grid said Friday. The plant which unites the power industry of Russia’s North-West is believed to have strategic importance. Industry experts fear that this could turn investors away from buying shares in Russian power plants.
Fortum will not be admitted to bid for a stake in TGK-1, RAO UES of Russia’s member of board Alexander Chikunov said Friday, according to unofficial sources. The Russian power grid released a statement later to explain that “Alexander Chikunov was misunderstood” and there cannot be any plans to bar foreigners from acquiring assets in the Russian power industry. A source of Kommersant says, though, that Mr. Chikunov meant what he said. St. Petersburg and North-West are strategically important regions for the Kremlin and, therefore, TGK-1, which is located there, cannot be possibly sold to foreign investors.
Fortum, which already holds 25.7 percent in TGK-1, was the first foreign investor to buy a stake in Russian power companies. The concern has repeatedly expressed interest in buying shares in one or two more power-generating companies in Russia.
Fortum is going to bid in an additional share issue of another power plant, OGK-3. Italian Enel and France’s Gaz de France are also going to bid to buy up the whole issue of 37.9 percent. Results of the additional emission are due on March 10. Federal anti-monopoly officials pledge that there will be no restrictions for foreigners to bid.
RAO UES is going to issue and sell 39 percent in TGK-1 this July. A Kommersant source maintains that federal officials are most likely to put an unofficial ban on foreign bidders at this auction.
Industry analysts argue that this decision could influence plans of Western companies to buy Russian power assets once they have heard rumors that overseas investors would not be allowed to bid.
www.kommersant.com
All the Article in Russian as of Feb. 19, 2007
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