Inter RAO has invited I. Sechin to join the Board

After a 2-year pause I.Sechin will return to the Board of Inter RAO. Though the Government hasn’t included him and the former Vice-Prime Minister in the list of the Government representatives in the Board, he was supported by the energy holding that holds 14% of its shares. Mr. Sechin might head the Board of Inter RAO: the current chairman, G. Kurtser, is not in the list of candidates.

Tomorrow the Board of Inter RAO UES is to approve the date (approximately June 25th) and the agenda of the annual meeting of the energy holding’s shareholders as well as the list of candidates to the new Board. A source in the sector told Kommersant that Inter RAO, which holds almost 14% of its shares via the affiliate Inter RAO Capital, has suggested I. Sechin to join the Board.

Mr. Sechin was in the Board of Inter RAO in 2008-2011 and was its chairman but left the Board when the President Medvedev required the chairmen to leave the Boards of the state corporations. I. Sechin was replaced by the President of the controlled by Rosneft VBRR, G. Kurtser.

For the first time it became clear about the return of I. Sechin to Inter RAO in December 2012, he was included in the prepared by Rosimuschestvo project of the new Board of the energy holding. Then the agency suggested I. Sechin for the position of the chairman as well. But I.Sechin was not included in the agreed last week list of Government representatives in the Board. The head of Inter RAO, B. Kovalchuk, head of FSK, O. Budagin, and the head of “Sovet rynka”, V. Kravchenko were included (all 3 are in the existing Board).

Inter RAO is considered the state energy company but the shares of the controlling package are distributed between Rosimuschestvo (13.76%), Inter RAO Capital and state structures (FSK-18.57%, Rosatom – 12.5%, VEB and RusGidro – about 5% each). In total the Government controls about 69% of shares of Inter RAO. The largest private shareholder of the energy holding is Norilsk Nickel – 14%. Rosenftegas, that holds 75% in Rosneft and about 10% in Gazprom, is to consolidate the controlling package of Inter RAO in future. The Vice Prime Minister, A. Dvorkovich, suggested the scheme of the gradual purchase of the papers of the energy holding in late 2012. According to him, in 2013 Rosneftegas could purchase the package of Inter RAO from Rosimuschestvo.

If not taking into account the return of I. Sechin, the Board of Inter RAO is not to significantly change. Instead of Mr. Kurtser the current President of VBRR, E. Titova, suggested by Inter RAO Capital might join. RusGidro won’t suggest its candidates but will support the Government representatives. 2 representatives of Gazprom that are in the Board of Inter RAO now – member of the Board, head of the marketing, gas and liquid hydrocarbons processing department of Gazprom, K. Seleznev, and the head of Gazprom energy holding, D. Fedorov – might stay. Gazprom energy holding said the existing package is not enough to suggest candidates but Mr. Seleznev and Mr. Fedorov were suggested by Rosatom. The state corporation will suggest the first deputy CEO of Rosatom, A. Lokshin. The head of VEB, V. Dmitriev, will evidently keep his seat in the Board, he was suggested by the bank that also supports V. Kravchenko.

The co-owner and CEO of Norilsk Nickel, V. Potanin, is suggested to the Board of Inter RAO as a new candidate. GMK also suggested the managing director for energy of EBRR, R. Puliti.

The extremely popular President of GE in Russia and CIS, R. Pollett, might join the Board. The Kremlin actively promotes him, and has suggested introducing him to the Board of RusGidro, MRSK Holding and UES System Operator. Before that the Board of Inter RAO had another top-manager of the American company – President and CEO of GE in Europe, F. Beccali-Falco.

According to the chief analyst of FK Otkrytie, S. Beiden, for Inter RAO the return of I. Sechin to the Board – is more of neutral news as the energy company has supported the ideas of Rosneftegas before that and was in conflict with the Government (in the deal on the sale of 40% of Irkutsnenergo). But for the sector it might mean the continuation of the conflict between Rosneftegas and the Government.

http://www.kommersant.ru/doc/2140117

Translated by Galiya Musabekova