Sechin not ruling out harm to RusHydro's capitalization and finances from JV with EuroSibEnergo
SOCHI. Sept 21 (Interfax) - Head of Rosneft and Chairman of the board of directors at Rosneftegaz Igor Sechin, while commenting on options for providing additional capital to OJSC RusHydro now under consideration, has expressed the position that the government proposed plan for forming a joint venture between the genco and OJSC EuroSibEnergo might harm the former company's capitalization and financial condition.
"I can make an assumption. I still don't know but if Irkutskenergo , Krasnoyarsk Hydroelectric Power Plant and the dams are spun off into separate operations where RusHydro is a minority partner, the new operator EuroSibEnergo will, for instance, sign direct agreements with several with several metallurgical enterprises. RusHydro won't sell electricity on the open market and support its finances but lose assets and contracts. [It's unknown] how this will affect its position," Sechin said.
In order to provide additional capital to RusHydro, the hydro-power holding will receive additional funds in its capital, which it will later spend on purchasing 40% in Irkutskenergo from Inter RAO.
Furthermore, Rosneftegaz has proposed boosting RusHydro's capital through the acquisition of its shares. Funds raised from this might go directly to RusHydro's investment program.