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13 Feb, 2007 12:08

UES energy monopoly come up with investment initiative

UES energy monopoly come up with investment initiative

Russia’s power giant RAO UES has revised its investment programme, it announced in Moscow on Tuesday. It is a new version of the investment programme adopted a year ago.

It became necessary, as a growing Russian economy is driving demand for energy beyond original forecasts.

Demand grew 4.2 % last year, up from the original forecast of 2%, and the company is now preparing for 5% annual growth, with plans to spend almost $US 120 BLN by 2011.

Analysts say much of the money will come from IPOs. Dmitry Skryabin of Aton said that “the new programme, of course, is quite ambitious.”

Mr Skryabin added that RAO UES seems able to put this programme to practice, if “the market believes it. We will see it next year, or this year actually, when 15 companies try to place their shares on the market. If strategic investors believe UES and the government, they will earn money through buying bank assets in Russia now. Of course, this investment programme will be funded successfully because the bulk of this investment programme is to be found through additional share issues.”