21 May 2004 00:00
Foreign investors join row over UES
ByLine: Arkady Ostrovsky in Moscow
A group of foreign shareholders in Unified Energy System, Russia's electricity monopoly, have written to
president Vladimir Putin, demanding that his government clarifies its position in a row involving the country's
largest hydro-electric power station.
The move follows a decision by an arbitration court in Western Siberia effectively to de-privatise the giant
Sayano-Shushenskaya hydro-electric plant. Some government officials have since renounced nationalisation of the station
but shareholders remain nervous about its future.
In a letter obtained by the FT, the shareholders asked for a meeting with the head of Mr Putin's administration
to discuss the issue.
The complaint to the president also attacks Russian Aluminium (RusAl), the country's largest aluminium producer
- controlled by Oleg Deripaska, a powerful business tycoon - alleging that his company is behind attempts to reverse the
privatisation.
According to the shareholders, RusAl consumes 70 per cent of all electricity in the republic of Khakassia where the
plant is situated. "Although formally it is Khakassia which is suing to reverse the privatisation ... the true
protagonist is ... clear. Russian Aluminium is attempting to win for itself dirt-cheap electricity under the cover of
Khakassia," the letter says.
RusAl said on Thursday: "Our only interest is in long-term supply of electricity since our business is highly
dependent on energy consumption.
"With regard to the Sayansk dam, this is a matter between UES and the government of Khakassia."
The accusation by UES shareholders comes at a time of nervousness among foreign investors about the safety of
property rights in Russia and coincides with a wide-scale attack on Russian oil company Yukos. Foreign shareholders warn
such situations tarnish Russia's image in capital markets.
[FT.com site] |
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