9 Jan 2020 11:41

Stakes in several Russian power distribution cos in privatization plan to 2022

MOSCOW. Jan 9 (Interfax) - The Russian government has included stakes in a number of power distribution companies controlled by the Rosseti holding in its 2020-2022 privatization plan, according to an order posted on the Cabinet's website.

The biggest of them is a 6.86% stake in JSC Kubanenergo . Others include 3.71% of Inter-regional Distribution Grid Company of Urals (IDGC of Volga) , 0.22% of Tyvaenergo, 0.63% of Tomsk Distribution Company , 0.5% of IDGC of Volga , 0.05% of IDGC of Siberia , 0.45% of IDGC of Center , 0.001% of IDGC of Center & Volga and 0.1% of IDGC of South (0.1%).

The possible privatization of inter-regional distribution grid companies had been under discussion since 2013. The Russian Federal Anti-monopoly Service (FAS) considers it possible to start privatizing the grid complex with selected IDGCs, FAS chief Igor Artemyev told Interfax in October 2019. "They have a huge number of subsidiaries, for example the IDGCs. We could do a good pilot project, bring investment in, create a model grid and thereby demonstrate this is a good way," he said. "In general I'm very surprised that many of our companies do not want to sell relatively small stakes to portfolio investors, to normal qualified investors. This would be good business," he said.

RusHydro and Rosseti were originally included in the privatization plan to 2022, but following meetings with the Energy Ministry, it was decided to exclude them, Deputy Economic Development Minister Oksana Tarasenko, who is responsible at the ministry for privatization, has told Interfax in an interview.

Rosseti is Russia's biggest grid company, uniting the backbone electricity grid complex and the inter-regional and regional grid operators. The Russian Federal Property Agency (Rosimushchestvo) owns 88.04% of shares.