for "Leningradslanets"

Yesterday, General Director of Territorial Generating Company #1 (TGK-1) Andrei Likhachev said that he intends to approach the Estonian government with a proposal to lease the Baltic State District Power Plant to TGK-1. The interest of the former head of Lenenergo in the power plant becomes understandable if we consider that until recently it was Leningradslanets OJSC that supplied fuel to it. It has been idle for six months due to the fact that the Estonian side terminated the contract with it. And the largest owner of the enterprise is Petropolyus LLC, associated by the market with former top managers of Lenenergo, whose business was divided during the reform process. “In the coming days, I intend to appeal to the Prime Minister of Estonia with a proposal to lease the Baltic power plant to TGK-1,” Andrei Likhachev told Interfax yesterday. Let us recall that the Baltic State District Power Plant is part of the Estonian company Narva Power Plants, with which the Leningradslanets OJSC enterprise of the Leningrad region has worked in a technological connection for more than 15 years. The regional enterprise sold its fuel to Estonia, where oil shale was burned by the Baltic State District Power Plant. The Estonian side supplied the generated electricity to Lenenergo, which in turn sold it to consumers and paid for fuel with Leningradslanets. However, this scheme has not been working for six months now. Estonia terminated the contract for the supply of Russian oil shale, citing the fact that when it is burned, it spends the quota for greenhouse gas emissions provided for by the Kyoto Protocol, and it is more profitable for it not to spend this quota, but to sell it.
In mid-2003, there was a change of Leningradslanets shareholders. The Ministry of Property sold its stake in the enterprise (40.5%), the buyer was Petropolyus LLC. Other owners of Leningradslanets are the government of the Leningrad region (20%) and the company's management (39.5%). Commenting on this deal, Vice-Governor of the Leningrad Region Grigory Dvas explained to Kommersant that behind the new owner is the management of JSC Lenenergo, which at that time was headed by Andrei Likhachev. General Director of Leningradslanets Grigory Fraiman confirmed that Mr. Likhachev is currently preparing a letter to the Estonian government with a proposal to lease the Baltic State District Power Plant to TGC-1. “If the project is successful, the Baltic State District Power Plant will buy only our fuel. We met with Andrei Likhachev, and he expressed sincere concern about the situation at the enterprise, which has been idle for six months,” Mr. Fraiman told Kommersant.
It is curious that Petropolyus is also a minority shareholder of Petroelectrosbyt CJSC, 75% of which belongs to the St. Petersburg Sales Company (PSK). Like TGK-1, which took over the northwestern generating assets, PSK was formed in the process of reforming Lenenergo, which transferred the functions of selling electricity to it. Deputy General Director of PSK Alexander Merkulov told Kommersant yesterday that there are indeed rumors circulating in the market about the involvement of Lenenergo top management in Petropolus. “But my share is not there,” said Mr. Merkulov. “I will not comment on rumors. This is all nonsense,” Andrei Likhachev himself told Kommersant yesterday.
On the other hand, if Petropolyus, which paid 33 million rubles for a 40.5% stake in Leningradslanets, is still affiliated with one of the top managers of Lenenergo, Mr. Likhachev’s concern about the situation around Leningradslanets becomes understandable. After all, almost 100% of all shale produced in the Leningrad region was supplied to the Baltic State District Power Plant - 1.2 million tons worth 400 million rubles per year. If the Estonian government decides to lease the Baltic State District Power Plant to TGC-1, then the supply of oil shale to the power plant will be resumed. In Russia, there is not a single consumer of oil shale.
BORIS GORLIN

Newspaper "Kommersant St. Petersburg" No. 189 dated 10/07/2005, p. 4

Andrey Likhachev asked to rent the Baltic State District Power Plant