Support The Moscow Times!

Bashkirenergo Reorganizing

InterRAO will pay Sistema up to 14 billion rubles ($464 million) for a 40 percent stake in Bashkirenergo as part of a deal to split the regional utility's assets, the firms said Saturday.

Bashkirenergo plans to demerge its electricity grid and power generation. The split will see InterRAO, which currently owns a 25.08 percent voting stake in Bashkirenergo, obtain control of the utility's 4.2 gigawatts of power-generating assets. Sistema, which owns a 50.53 percent Bashkirenergo stake, will control Bashkirenergo's power distribution grid.

The deal is expected to close in the fourth quarter of 2012 or first quarter of 2013. Bashkirenergo's and Sistema's shareholders will vote on the proposed reorganization next month.

(Reuters)

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

As we approach the holiday season, please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world’s largest country.