China to join the Russian energy sector: Sanxia can buy blocking package of RAO Energy System of East

China, presence of which in the Russian energy sector has been limited by joint ventures on individual projects until now, as been first officially invited to the capital of a large energy company. RusHydro wants to sell a blocking package of problem Far Eastern energy holding company RAO Energy System of East. Formally, it talks about Asian investors in general, but, according to the Kommersant’s information, the proposal has been already made to Chinese Sanxia (Three Gorges), with which RusHydro creates a joint venture for the construction of hydropower plants in the Far East.

Yesterday, the RusHydro’s Board of Directors approved a long-term development program, one of key elements of which was to raise funds in problem energy holding company RAO Energy System of East, combining the energy of the Far East. As deputy president of RusHydro George Rizhinashvili stated, in 3-5 years, the company will be able to sell a blocking package of its subsidiary. During this period, RusHydro will try to consolidate 100% of shares of the Far Eastern holding company, and it will decide a number of operational problems, including it will increase EBITDA and optimize costs. "We would like to consider possibility of the proposal of the blocking package to a strategic Asian investor," - said the top manager, added that the "Asian partners" didn’t necessarily mean a Chinese company. "This will be determined on the assumption of the operating model of RAO Energy System of East," - he noted, in particular, the companies that "are today involved in modernization", that is, "these can be Chinese, Korean partners".