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Russia`s energy industry

Russian energy systemExpert RA Rating Agency offers unique market research to foreign companies exploring the possibility of entering the Russian market or searching for Russian partners. The market research provided by Expert RA has several distinct advantages:

  • Expert RA has been surveying companies in the Russian chemical, petrochemical, metal, and energy industries sine 1997. This has allowed our agency to amass a large amount of exclusive, first-hand information.

  • Expert RA’s many years of surveys include the leading companies in the metal, chemical, petrochemical, and energy industries and give our clients a comprehensive overview of the industry in question.

The current status and future prospects for development of Russia’s energy industry

1. Russian energy

  • General characteristics and make-up of the energy industry
  • Major electricity and heat-generating facilities
  • The United Energy System of Russia (Rus. UES Rossiya)

2. Production capacity

  • The structure of electricity generation capacity at power plants
  • Use of existing capacity

3. Production and feasibility indicators for electric energy

  • The balance of energy of production and consumption of electricity and steam heat
  • Production of electricity
  • Production of steam heat
  • The structure of electricity production

4. The market for electricity and steam heat

  • Wholesale and retail markets for electricity
  • The federal wholesale electricity market (capacity)
  • Policies for setting rates

5. The technology in the industry and investment

  • The physical and technological condition of production facilities
  • Investment
  • Scientific research and development in the energy industry

6. Energy company stock performance on the stock market
7. Energy industry reform
8. Russia’s strategy for developing the energy industry

      RAO UES Rossiya

      1. General characteristics of RAO UES Rossiya

      • The role and place of RAO UES Rossiya in the Russia economy and the energy sector

      2. Structure of RAO UES Rossiya’s assets
      3. RAO UES Rossiya’s management and directors

      • Board of Directors
      • Management Board

      4. Structure of RAO UES Rossiya>

      • Organizational structure
      • Management structure of the company

      5. Strategies for developing and reforming RAO UES Rossiya

      • Strategies for optimizing and improving the holding
      • Restructuring RAO UES Rossiya

      6. Production activities

      • Energy capacity and its usage
      • Electricity and heat generation
      • Specific fuel requirements for generating electricity and heat
      • Fuel supply

      7. RAO UES Rossiya’s inter-systemic power grid
      8. Organization of engineering and operational administration at RAO UES Rossiya
      9. Results of activity on the consumer markets for electricity and heat

          • Supplying electricity and heat to the market
          • Structure and dynamics of the market
          • The financial soundness of the electricity and heat market
          • Rates and prices on the consumer market

          10. Export

          • The goals and main projects of RAO UES Rossiya’s export operations
          • Results of export activities

          11. Status of the company’s basic funds and investment activities

          • Status of basic funds and resources
          • Total investment activity for 2002. Main directions for investment in 2003.

          12.Financial status

          • Financial results for RAO UES Rossiya, 2000-2002
          • Tax payment status

          13.The Russian and international market for RAO UES Rossiya bonds and securities

          The Rosenergoatom Concern

          1. General characteristics of Rosenergoatom
          2. Rosenergoatom’s structure
          3. Direction and management
          4. The company’s production activities
            • Existing production capacity and its usage
            • Electricity generation

            5. Safety at the company’s nuclear power plants
            6. Investment activities
            7. Financial results
            8. Future prospects for the Concern

            The associates at Expert RA Rating Agency have extensive experience in preparing business reports on companies in the energy industry. These reports give clients information about production (the structure of main resources, existing production capacity, generation and distribution of electricity and steam heat, the characteristics of the power grid and heat distribution network, fuel use, energy consumption by consumer group, rates for electricity by consumer group), financial operations, and the structure of shareholder capital.

            Expert RA Rating Agency offers reports on the following energy companies:

            JSC Altaienergo

            JSC Amurenergo

            JSC Arkheenergo

            JSC Astrakhanenergo

            JSC Bashkirenergo

            JSC Belgorodenergo

            JSC Bryanskenergo

            JSC Buryatenergo

            JSC Vladimirenergo

            JSC Volgogradenergo

            JSC Vologdaenergo

            JSC Voronezhenergo

            JSC Dagenergo

            JSC Dalenergo

            JSC Ivenergo

            JSC Ingushenergo

            JSC Irkutskenergo

            JSC Kabbalkenergo

            JSC Kalmenergo

            JSC Kalugaenergo

            JSC Kamchastkenergo

            JSC Karachaevo-Cherkesskenergo

            JSC Karelenergo

            JSC Kirovenergo

            JSC Kolymaenergo

            JSC Kolenergo

            JSC Komienergo

            JSC Kostromaenergo

            JSC Krasnoarskenergo

            JSC Kubanenergo

            JSC Kuzbassenergo

            JSC Kurganenergo

            JSC Kurskenergo

            JSC Lenenergo

            JSC Lipetskenergo

            JSC Magadanenergo

            JSC Marienergo

            JSC Mordovenergo

            JSC Mosenergo

            JSC Nizhnovenergo

            JSC Novogorodenergo

            JSC Novosiberskenergo

            JSC Omskenergo

            JSC Orelenergo

            JSC Orenburgenergo

            JSC Penzaenergo

            JSC Permenergo

            JSC Pskovenergo

            JSC Rostovenergo

            JSC Ryazanenergo

            JSC Samaraenergo

            JSC Saratovenergo

            JSC Sakhalinenergo

            JSC Sverdlovenergo

            JSC Sevkavkazenergo

            JSC Smolenskenergo

            JSC Stavropolenergo

            JSC Taimyrenergo

            JSC Tambovenergo

            GPEÎ Tatenergo

            JSC Tverenergo

            JSC Tomskenergo

            JSC Tulenergo

            JSC Tyvaenergo

            JSC Tyumenenergo

            JSC Urdmurtenergo

            JSC Ulyanovenergo

            JSC Khabarovskenergo

            JSC Khakasenergo

            JSC Chelyabenergo

            JSC Chitaenergo

            JSC Chuvashenergo

            JSC Yakustskenergo

            JSC Yantarenergo

            JSC Yarenergo

            Electricity and Heat Plants

            ZÀÎ LuTEK

            JSC Berezovskaya State Electric Plant 1

            JSC Gusinozersk State Electric Plant

            JSC Konakovskaya State Electric Plant

            JSC Kostroma State Electric Plant

            JSC Krasnoyarsk State Electric Plant 2

            JSC Nevinnomyskaya State Electric Plant

            JSC Nogliskaya State Electric Plant

            JSC Novocherkasskaya State Electric Plant

            JSC Perm State Electric Plant

            JSC Pechorskaya State Electric Plant

            JSC Pskov State Electric Plant

            JSC Ryazan State Electric Plant

            JSC Nortwestern Heat and Energy

            JSC Stavropol State Electric Plant

            JSC Troitskaya State Electric Plant

            JSC Cherepetskaya State Electric Plant

            Kharanorskaya State Electric Plant, a RAO UES Rossiya subsidiary

            Hydroelectric Plants

            JSC Volga Hydroelectric Plant (in Volzhsky)

            JSC Volga Hydroelectric Plant (in Zhigulevsk)

            JSC Votkinskaya Hydroelectric Plant

            JSC Zeiskaya Hydroelectric Plant

            JSC Zelechusky Hydroelectric Plants

            JSC Kamskaya Hydroelectric Plant

            JSC Kaskad Verkhnevolzhsky Hydroelectric Plants

            JSC Krasnoyarsk Hydroelectric Plant

            JSC Sayano-Shushenskaya Hydroelectric Plant

            JSC Sulakenergo

            Nizhnegorodskaya Hydroelectric Plant, a RAO UES Rossiya subsidiary

            Saratov Hydroelectric Plant, a RAO UES Rossiya subsidiary

             

            Sample Company Report

            AMURENERGO

                Administrative Jurisdiction: Vostokenergo
                Type of Regional Energy System: with deficit of energy and production capacity

            General Information

            Company Information:
                Government registration number: 686
                Government registration date: 10.06.1993
                Registering agency: Blagoveschensk City Administration
                Organization type: Public stock company (Rus. OAO)
                OKPO code: 00105970
                OKONKh codes: 19900, 1110, 11170, 14912, 61124, 72200, 51510, 71200, 71500, 71100
                Tax ID number: 2801006865
                Postal address: 675000,
            ã. Áëàãîâåùåíñê, óë. Øåâ÷åíêî, 28
                Area code: 4162
                Telephone: 49-64-64
                Fax: 49-64-64
                E-mail: gdm@amur.elektra.ru
                Website: www.amurenergo.ru

            Directors

            Position

            Name

            Telephone

            General Director

            Yuri Andreevich Andreyenko

            (416-2) 39-73-50

            Board of Directors, 2002

            Position

            Name

            Deputy Head, OAO SO-TsDU UES Department

            Vasili Ivanovich Ananyin

            General Director, OAO Amurenergo

            Yuri Andreevich Andreyenko

            Advisor on Board of Directors Operations, Vostokenergo Representative Office

            Andrei Eduarovich Glotov

            First Deputy General Director, Vostokenergo Representative Office

            Pavel Anatolyevich Korovko

            Deputy Head of the Amur Provincial Administration

            Valeri Nikolaevich Gladilov

            Director of the Corporate Activities Division, Vostokenergo Representative Office

            Vladimir Alexandrovich Zhigarev

            Advisor to the Chair of the RAO UES Rossiya Administration

            Pavel Borisovich Popov

            Number of EmployUES

             

            2000

            2001

            2002

            Total employUES

            7287

            7480

            7417

            Number of full-time employUES

            6621

            6909

            6726

            Brief Overview of the Region’s Geography and Economy
                Amur Province is part of the Far Eastern Federal District. The provincial center is the city of Blagoveschensk (pop. 221,900). The province is rich in minerals and the soil is fertile enough to support productive agriculture. The province has a good energy base, including heat-generating power plants using local coal and the Zeiskaya Hydroelectric Plant. Regional specializations include transportation, mining and minerals, energy, forestry and agriculture, and gold production. Amur Province also has stock breeding, with both dairy and beef herds, and a well-developed system for raising horses and fodder. Almost 50% of Russia’s total soy crop is grown in Amur Province. The main industries of the province include electricity generation, mining (gold, coal), forestry and lumber products, construction materials manufacturing and construction, and food production (meat products). Main rivers: the Amur, Bureya, and Zeya, which forms the Zeysky Reservoir. The average temperature in January is -24 C and in June +20 C. Amur Province, located in the southern part of the Russian Far East, shares its borders to the south and southwest with China, to the north with the Republic of Sakha (Yakutia), to the northeast and east with the Khabarovsk Territory, and to the southeast with the Jewish Autonomous District. Major cities and towns include Blagoveschensk, Belogorsk (pop. 75,400), Zeya (31,100), Raichikhinsk (48,000), Svobodny (73,200), and Tynda (49,900). According to the rating of attractiveness to investors of Russia’s regions for 2001-2002, Amur Province was one of the regions considered moderately attractive to investment, with low investment potential and moderate risk.

            Stock Ownership as of 01.01.03

            Shareholders

            Total shares, number

            Total shares, %

            Regular shares, number

            Regular shares, %

            Privileged shares, number

            Privileged shares, %

            Individual investors, total

            91277102

            16.07

            63775773

            13.09

            27501329

            34.16

            Legal entities, total

            476575091

            83.93

            423565269

            86.91

            53009822

            65.84

            Including RAO UES Rossiya

            293035767

            51.60

            288066625

            59.11

            4969142

            6.17

            Total

            567852193

            100.00

            487341042

            100.00

            80511151

            100.00

            Including foreign investors

            133812144

            23.56

            97068098

            19.92

            36744046

            45.64

            Register Holder

            Name

            License number and validity

            Location

            Postal address and telephone

            Central Moscow Depository

            License No. 10-000-1-00255 of September 13, 2002. No limitations on period of validity.

            107078, Moscow

            Orlikov per. 3, kor. V

            105066, Moscow, ul. Olkhovskaya 22

            (095) 263-81-53

            Stock Issues as of 01.01.03

            Issue

            Date of Issue Registration

            Amount of issue, thousands of rubles

            Number of regular shares

            Number of privileged shares

            Face value, rubles

            01

            10.08.1993

            1133,056

            923095

            209961

            1

            02

            27.12.1994

            433357,777

            353056587

            80301190

            1

            03

            4.03.1998

            28884,642

            28884642

            -

            1

            04

            18.09.1998

            104476,718

            104476718

            -

            1

            Total

             

            567852,193

            487341042

            80511151

             

            Dividends Paid, Rubles

             

            2000

            2001

            2002

            Regular shares

            22710093

            0

            0

            Privileged shares

            3751820

            0

            0

            Shares in Other Companies

            Company

            City

            % of founding capital

            ÒÎÎ Non-governmental Foundation

            Blagoveschensk, ul. B. Khmelnitskogo 5

            40.00

            ÎÎÎ Garantia

            675000, Amur obl. Blagoveschensk, ul. Shevchenko 28

            19.83

            Material Basis and Economic Indicators

            Value of Main Assets, thousands of rubles

             

            As of 01.01.2002

            As of 01.01.2003

            Buildings

            1417256

            1435820

            Other structures

            7902951

            8024720

            Machines and equipment

            5528953

            5550459

            Vehicles

            80936

            91229

            Production inventory

            23044

            25078

            Other basic assets

            58517

            29804

            Total

            15011657

            15157110

            includes:

             

             

            Production-related assets

            14858334

            15033434

            Non-production-related assets

            153323

            123676

            Depreciation, total

            8603470

            8966377

            Depreciation rate, %

            57.31

            59.16

            Production Structure
                Amurenergotransport
                Blagoveschensk Heat and Electricity Plant
                Eastern Power Grid
                OAO Amurenergo Executive Direction
                Engineering Center
                Production and Maintenance
                Raichikhinskaya State Power Plant
                Northern Power Grid
                Technical and Commercial Center
                Regional Energy Dispatch
                Svobodny Electric Grid
            Energokomplekt
                Amurenergosbyt
                Training Plant
                Amurenergospetsremont
                Mukhina Sports Complex
                Central Power Grid

            Power Plant Characteristics (2002)

            Power plant (city)

            Existing capacity as of 01.01.03, kWt

            Useable capacity as of 01.01.03, kWt

            Electricity produced, kWt hours

            Electricity distributed, kWt hours

            Heat distributed as a by-product, Gcal

            Blagoveschensk Heat and Electricity Plant (Blagoveschensk)

            280000

            280000

            891659

            710125

            1723623

            Raichikhinsky State Electric Plant (Progress)

            219000

            219000

            331581

            279167

            141354

            Ogodzhinskaya Plant (Ogodzha)

            -

            -

            -

            -

            96803

            Total

            499000

            499000

            1223240

            989292

            1961780

            Power Lines in the Company’s Electricity Distribution System

            Length, km

            Voltage, kV

            Cable power lines

             

            498

            0.38-35

            Overhead power lines

             

            4633

            220

            1759

            110-154

            16028

            0.38-35

            Heat Distribution Network

            Facility

            Pipeline length, km

            Blagoveschensk Heat and Electricity Plant

            60.7

            Raichikhinsky Plant

            23.0

            Existing and Useable Capacity, ÌWt

             

            As of 01.01.2002

            As of 01.01.2003

            Existing capacity

            496.0

            499.0

            Useable capacity

            486.4

            499.0

            Per Unit Energy Requirements (2002)

            Power plant (city)

            Electricity required per unit to produce electricity, %

            Electricity required per unit to distribute heat, kWt hr/Gcal

            Fuel required per unit for electricity produced, kg/kWt hr

            Fuel required per unit for heat produced, kg/Gcal

            Blagoveschensk Plant (Blagoveschensk)

            9.4

            56.9

            381

            143

            Raichikhinsky Plant (Progress)

            14.1

            40.1

            500.4

            173.5

            Ogodzhinsky Plant (Ogodzha)

            -

            -

            -

            52

            Total

            10.7

            55.6

            414.7

            140.7

            Fuel Used at the System’s Plants, 2002

            Power plant

            Total, units

            Petroleum-based, %

            Natural gas, %

            Coal, %

            Blagoveschensk

            517,000

            0.2

            0

            99.8

            Raichikhinsky

            164,200

            0.4

            0

            99.6

            Total

            681,2

            0.2

            0

            99.8

            Fuel Usage

             

            2001

            2002

            Natural gas, million of m3

            -

            -

            Coal, thousands of tons

            1669.76

            1709.01

            Petroleum-based fuels, thousands of tons (diesel)

            2.23

            1.21

            Other fuels

            -

            -

            Total, thousands of units

            701.00

            686.00

            Production and Distribution of Electricity to Consumers, thousands of kWt Hours

             

            2001

            2002

            Heat plants

            1219629

            1223240

            Hydroelectric plants

            -

            -

            Total energy produced

            1219629

            1223240

            Electricity distributed to consumers

            4363305

            4068004

            Electricity Purchased from and Provided to FOREM (Federal Wholesale Electricity Market)

             

            2001

            2002

            Electricity purchased from FOREM, thousands of kWt hr

            4536239

            4414104

            Electricity provided to FOREM, thousands of kWt hr

            -

            -

            Average actual rate for electricity purchases on FOREM, kopeck/kWt hr

            16.06

            20.05

            Average actual rate for electricity sales on FOREM, kopeck/kWt hr

            -

            -

            Electricity Consumption by Consumer Group, %

             

            2001

            2002

            Industry

            17.63

            20.53

            Individual consumers

            3.89

            4.90

            Agriculture

            2.07

            1.96

            Transportation

            32.41

            35.24

            Others

            44.01

            37.37

            Yearly Average Rate for Electricity by Consumer Group, kopeck/kWt hr

             

            2001

            2002

            Industry

            60.96

            99.48

            Agriculture

            41.29

            83.15

            Individual consumers

            44.14

            72.86

            Transportation

            63.86

            87.79

            Overall average rate

            51.67

            82.48

            Production Costs

             

            2001

            2002

            Cost of producing electricity, kopeck/kWt hr

            49.13

            72.23

            Cost of producing heat, ruble/Gcal

            281.37

            387.22

            Heat Supply to Consumers

             

            2001

            2002

            Heat supplied to consumers, Gcal

            1663025

            1580261

            Average heat rate, ruble/Gcal

            220.78

            297.18

            Main Industrial Consumers of Electricity for 2002

            Company Name

            Electricity supply, thousands of kWt hr

            Amount, thousands of rubles

            Amur Broiler

            11838

            11356

            Vodokanal City Enterprise, Blagoveschensk

            16481

            20468

            Far Eastern Railroad

            371985

            392200

            Zabaikalsky Railroad

            1440989

            1512647

            Blagoveschensk Municipal Electric Company

            434181

            347484

            Belogorsk Municipal Electric Company

            96324

            65523

            Svobodny Municipal Electric Company

            17367

            10092

            Bureya Cranes

            2541

            2860

            Dalvostugol

            96122

            126351

            Vostochny Factory

            566

            685

            Dambuki Mines

            20272

            19401

            Solovyevsky Mines

            43038

            43166

            Shakhtaum

            10880

            13396

            October Revolution Shipbuilders

            1336

            1435

            Financial Indicators

                Financial Services: Auditor: ZÀÎ Mosaudit Center for Financial Expertise and Auditing

            Assets and Liabilities, thousands of rubles

             

            01.01.2001

            01.01.2002

            01.01.2003

            01.04.2003

            ASSETS

             

             

             

             

            I. CAPITAL ASSETS

             

             

             

             

            Non-material assets

            5336

            -

            -

            -

            Main capital

            3762836

            6408187

            6190733

            6092095

            Uncompleted construction

            488331

            548189

            521482

            541605

            Long-term financial investments

            116334

            116236

            106864

            106864

            Other capital assets

            -

            -

            -

            -

            Total for Section I

            4372837

            7072612

            6819079

            6740564

            II. CURRENT ASSETS

             

             

             

             

            Current inventory

            310688

            498363

            452936

            423355

            VAT on purchase of valuables

            148635

            140429

            113534

            113388

            Accounts receivable (payments for which are anticipated more than 12 months after reporting date)

            -

            -

            -

            -

            Accounts receivable (payments for which are anticipated within 12 months of reporting date)

            1855917

            1451646

            1261308

            1369781

            Short-term financial investments

            36928

            11686

            16965

            16965

            Monetary funds

            18984

            23071

            14949

            10876

            Other current assets

            -

            -

            -

            -

            Total for Section II

            2371152

            2125195

            1859692

            1934365

            TOTAL ASSETS

            6743989

            9197807

            8678771

            8674929

            LIABILITIES

             

             

             

             

            III. CAPTIAL AND RESERVES

             

             

             

             

            Charter capital

            567852

            567852

            567852

            567852

            Capital surplus

            3852816

            6560652

            6528507

            6528507

            Reserve capital

            -

            -

            -

            -

            Social insurance fund

            2424

            2416

            2412

            2409

            Targeted investments and revenue

            -

            -

            -

            -

            Undistributed profits from previous years

            176759

            144761

            176906

            176906

            Uncovered losses from previous years

            -127749

            -342815

            -342815

            -1806632

            Undistributed profits for the reporting year

            -

            -

            -

            42288

            Uncovered losses for the reporting year

            -66253

            -

            -1463817

            -

            Total for Section III

            4390829

            6932866

            5469045

            5511330

            IV. LONG-TERM LIABILITIES

             

             

             

             

            Total for Section IV

            2400

            232637

            1781622

            1748287

            V. SHORT-TERM LIABILITIES

             

             

             

             

            Loans

            170644

            239923

            217346

            216559

            Accounts payable

            2094649

            1709553

            1152882

            1140380

            Accounts payable to participants (founders) from earnings

            18142

            21625

            14416

            14401

            Earnings from future periods

            67325

            61203

            43460

            43972

            Reserves for costs to be incurred

            -

            -

            -

            -

            Other short-term obligations

            -

            -

            -

            -

            Total for Section V

            2350760

            2032304

            1428104

            1415312

            TOTAL LIABILITIES

            6743989

            9197807

            8678771

            8674929

            Profits and Losses, thousands of rubles

             

            2000

            2001

            2002

            1 êâ. 2003

            I. Revenues and expenses incurred in the regular line of business

             

             

             

             

            Income (net) from sales of goods, products, or services

            2271768

            2902372

            4058646

            1541355

            Cost of selling goods or services

            2192553

            2863735

            3775998

            1222488

            Commercial expenses

            10666

            13552

            13251

            2795

            Administrative expenses

            -

            -

            -

            -

            Profit (loss) from sales

            68549

            25085

            269397

            316072

            II. Operational income and expenses

             

             

             

             

            Interest receivable

            -

            4002

            6023

            -

            Interest payable

            14614

            12895

            50220

            16662

            Income from participation in other organizations

            421

            282

            59

            -

            Other operational income

            6730

            530216

            533311

            93968

            Other operational expenses

            113045

            567023

            596246

            256447

            III. Extra-sales income and expenses

             

             

             

             

            Extra-sales income

            39422

            68149

            39680

            332

            Extra-sales expenses

            83345

            191696

            208101

            55466

            Profit (loss) before taxes

            -95882

            -143880

            -6097

            81797

            Profit tax

            -30528

            27936

            1457720

            39509

            Profit (loss) from main business activity

            -65354

            -171816

            -1463817

            42288

            IV. Extraordinary income and expenses

             

             

             

             

            Extraordinary income

            -

            -

            -

            -

            Extraordinary expenses

            899

            -

            -

            -

            Net profit (undistributed profit (loss) for the reporting period)

            -66253

            -171816

            -1463817

            42288

            Company Expenditures, thousands of rubles

             

            2001

            2002

            Material expenditures

            1778705

            2106716

            Salaries and wages

            431105

            551944

            Social insurance fund

            151556

            189178

            Capital depreciation

            170872

            379080

            Misc.

            345049

            562331

            Payment for Products, %

             

            2001

            2002

            Total level of payment for electricity and heat

            108.51

            101.41

            Including monetary payment

            105.74

            98.35

            For additional information about services offered by Expert RA Rating Agency, please contact us at tromlakova@raexpert.ru


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