RAO EES Rossii

concluded

UES is the Russian national electricity utility, which owns and operates 57,400 MW of fossil and hydro generation at 35 plants and holds 49% - 75% in most of the 72 regional utilities. (It owns 100% of the following Energos: AO Yantarenergo, AO Karelenergo, AO Chuvashenergo, AO Karachaevo-CHerkessenergo, AO Kalmenergo, AO Orenburgenergo, AO Tyumenenergo, AO Khakassenergo, AO Kolymaenergo). It also owns the national grid, operates a central dispatch centre and six regional centres and effectively manages the national wholesale market (30% of the total power consumed in the country). Plans for restructuring will be implemented in the near future. The joint company was formed in December 1992, and privatization occured in various stages starting in 1994 (1994 - 25%, 1997 - 10%).The state must by law own at least 51%. Current shareholders are the Russian government (52.5%), CS First Boston (20%), a bank consortium led by Natiolny Reservny Bank (8.5% - this stake was privatized in early 1997 and raised an estimated $350m), employees (9%) with the rest held by Russian and foreign individuals. Values for divestiture revenue are not available but can be very roughly estimated at $1.1bn (based on 41,041,743,984 issued shares as of July 1996 and stock market prices). RAO UES was dissolved on July 1, 2008 as a result of the power sector restructuring in Russia.