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Gazprom has signed a deal with Renova Group to merge assets and create a state-controlled national power utility, part of plans partially reversing the recent privatisation of the Russian power industry.
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Under the deal, Viktor Vekselberg, Russia’s 10th richest man and owner of Renova Group, will transfer his stakes in four Russian power plants to Gazprom’s Energoholding in exchange for at least a 25 per cent stake in the newly merged group.
The company will have a 25 per cent share in the Russian electricity market and a total generation capacity of 52 GW, Gazprom Chief Executive Alexei Miller said to the press. The new company would have a similar standing on the global market as energy giants such as Germany’s E.On and France’s EDF, he said
The company will eventually be restructured and floated on an overseas stockmarket, Vekselberg said. The Federal Anti-Monopoly Service has reportedly described the merger as “undesirable” as Gazprom already holds many significant power assets.
Vekselberg acquired the assets when the Russian government broke up its state power monopoly UES three years ago, in a bid to boost investment in crumbling infrastructure and improve efficiency.