20 Jun 2022 09:49

Rosseti expects some projects to be pushed back, but no cancellations

ST. PETERSBURG. June 20 (Interfax) - Some Rosseti projects could face potential delays of up to a year amid problems with equipment supplies, but they will not be cancelled, the Russian power grid company's CEO, Andrei Ryumin told reporters on the sidelines of the St. Petersburg International Economic Forum.

"All planned projects will be implemented. There are no risks of disruption, but there is a likelihood of delays in implementation. The reason is clear - a number of western companies have refused to supply equipment," Ryumin said when asked about potential project delays.

"Therefore, time is needed for agreements with alternative suppliers, for example from Asia. We are now holding the relevant negotiations," he said.

"According to preliminary estimates, up to a year," Ryumin said when asked about the duration of the possible delays. The company uses equipment in its projects that takes less than a year to manufacture, he said.

Major customers are also having problems with equipment, he added. "A number of major consumers are also telling us, let's push back projects by a year or two, because we ourselves are starting the process of redesign using alternative equipment," Ryumin said without specifying which projects.

Imports now account for no more than 10% of purchases for new projects, and they consist mainly of high voltage equipment, as well as communication systems and telemechanics, Ryumin said.

Rosseti, Russia's largest power grid company, includes the backbone grid, and interregional and regional distribution grid companies. The Russian government owns 88.04% of the company through the Federal Property Agency.