RusAl and RusHydro looking for plan to implement BEMO project without using offshores
DAVOS. Jan 30 (Interfax) - RusAl and RusHydro and looking for a new corporate scheme for the development of the Boguchany Hydroelectric Power Plant and Aluminum Smelter (The BEMO project).
The current plan was approved by the two companies in 2005-2006. It foresees a "two keys" principle. In other words, all important decisions should be approved bilaterally partially because of the complex history between RusAl and RAO UES Russia, which was RusHydro's parent company. The project's implementation has already been repeatedly plagued by conflict.
The "two keys" approach, which is not covered in Russian legislation, was implemented through the use of Cyprus-based offshores for property holding.
At the end of December 2011, Russian Prime Minister Vladimir Putin said that companies implementing major projects should be registered in Russia. Deputy Prime Minister Igor Sechin, who overseas the power sector, later cited the BEMO project as an example of what Putin had in mind.
RusAl's first deputy general director, Vyacheslav Solovyev, told Interfax that both sides are now thinking of a new corporate structure for BEMO.
"Because of the Prime Minister's instructions, we are looking for a plan. We are in this process," he said.
When asked whether a provision could be created for Russian legislation for the "two keys" approach, Solovyev said: "So far I don't know. We are trying really hard. A remedy hasn't been found so far but we're working on this."