Russian govt supports FGC, IDGC integration, but not on basis of Rosneftegaz - Dvorkovich
MOSCOW. July 13. (Interfax) - The Russian government supports the general idea of integrating OJSC Federal Grid Company UES and IDGC Holding, but not on the basis of Rosneftegaz, Deputy Prime Minister Arkady Dvorkovich told journalists after a government meeting.
"Rosneftegaz put forth its proposals. They were laid out at a meeting of the presidential commission for the development of the fuel and energy complex, but they did not get approval," he said.
A source told Interfax that Rosneftegaz suggested creating a unified national grid company in phases - first transferring FGC and IDGC (right now FGC manages IDGC) to the management of Rosneftegaz or its subsidiary, then establishing a unified company.
"There is a generally approved idea for the companies' integration but I can't yet talk about the integration scheme, whether it'll be an amalgamation in the legal sense of the word, a merger, takeover or what," he said.
"The commission's draft protocol contains the order to further elaborate these issues. They will be worked through by September, and they will be considered at a government meeting in September before the issue is passed over for consideration by the Russian president," Dvorkovich said.
The state might have to pay between $700 million and $3 billion to buy out minority shareholders in FGC and IDGC Holding if they are merged, Energy Minister Alexander Novak told journalists on Friday. Asked whether this had been budgeted for, Dvorkovich said Rosneftegaz had come up with the estimates. "They'll be needed is the scheme suggested by Rosneftegaz is adopted and there are minority shareholders who do not want to stay with the integrated company. But the mechanism suggested by Rosneftegaz has not been approved by anybody yet," he said.
