Date
Author
Николай ГОРЕЛОВ; Андрей ДЕНИСОВ
Source
Preserved copy
Translated material
Reform
Gazprom and SUEK created the leader of the Russian electricity market
Gazprom is increasingly becoming an energy concern, in which the electric power industry occupies a significant place. Yesterday it was announced that the concern and the Siberian Coal Energy Company (SUEK) intend to create a structure by the end of the first half of the year into which the energy and coal assets of both enterprises will be transferred. Gazprom will own 50% plus one share, SUEK will own the remaining stake. The head of the new company, apparently, will be the current head of SUEK, Vladimir Rashevsky. At the same time, a source close to the deal claims that Gazprom is unlikely to contribute Mosenergo shares to the new enterprise. However, it is this structure that will be involved in the further acquisition of energy assets. Thus, the largest energy company will be created on the Russian market, which will be able to actually determine the development strategy of both the electric power industry and the coal industry, and at the same time will be able to fulfill its obligations.The creation of the new company was commented on yesterday by high-ranking officials - First Deputy Prime Minister and Chairman of the Board of Directors of Gazprom Dmitry Medvedev and the President's Special Representative for International Energy Cooperation Igor Yusufov. This fact alone suggests that the future deal is a direct consequence of Vladimir Putin’s criticism expressed against ministries, departments and energy companies in connection with the slow reform of the electric power industry - the lack of a coordinated plan for attracting investments, the absence of a general layout of energy facilities, etc. The president of the country has repeatedly pointed out that the undeveloped energy sector is a brake on the development of the economy of the entire country. Now, it seems, things are starting to move forward.
“The proposed creation of a joint company with SUEK is another step towards the establishment of Gazprom as a world-class diversified energy company,” news agencies quote Mr. Medvedev. “The activities of the new company will also become an important factor in the development and modernization of the Russian coal industry The partners intend to develop a detailed strategy for the new company, the goal of which is to become one of the leaders in the Russian electric power industry and take a leading position in the global energy and coal mining industries. The activities of the joint company will be aimed at significantly increasing the economic efficiency and balance of the use of coal and gas in power generation and should. contribute to saving gas supplies for the needs of the electric power industry." In turn, Mr. Yusufov believes that “the idea of creating a large company that aims to prioritize the development of modern and efficient coal-fired power generation is fully consistent with the interests of sustainable development of the country’s electric power industry and the objectives of our energy security.” “The activities of a new company can become an important factor in a more optimal structure for the use of such basic natural resources as gas and coal,” he believes. -- Russia ranks first in the world in terms of gas reserves, and second in terms of coal reserves. But it is important to maximize the economic impact of their use. If it is more profitable to export gas, including from the point of view of budget interests, then it is better and more efficient to use coal within the country. This principle lies in the idea of the new company’s strategy.”
As for the deal itself, as a source in SUEK says, “its idea is natural and obvious.” After all, the development of the coal industry in Russia is virtually impossible without coordination with Gazprom. At the same time, according to him, the cost of electricity generated at coal-fired thermal power plants is similar to the cost of energy generated from gas at a price of $85-90 per thousand cubic meters. And as you know, in two years this will be exactly the price of gas on the domestic Russian market, while in Europe gas already costs more than $200 per thousand cubic meters.
A source in business circles claims that one of the co-owners of SUEK, Andrey Melnichenko, has been trying to sell the coal business to Gazprom for several years for precisely this reason. Now that he has become the sole owner of the Eurochem company (in December last year he divided the business with his partner Sergei Popov, but in SUEK they retained parity ownership - approximately 48% of shares each, a little more than 3% is believed to belong to Mr. Rashevsky) and managed to become a partner of Gazprom, his chemical business, which is heavily dependent on gas, can eliminate problems with the supply of raw materials.
“The exact list of assets to be contributed to the joint company,” says the joint press release of SUEK and Gazprom, “and the procedure for compensating the possible difference in their value will be determined during the preparation of the transaction.” A source close to the deal claims that SUEK will contribute absolutely all of its assets - coal mines and stakes (mostly blocking) in territorial generating companies located mainly in Siberia and the Far East. In turn, Gazprom will contribute its 10 percent stake in RAO UES of Russia. Mosenergo shares - and by the summer Gazprom will gain control of this energy company - will more than likely not be included in the capital of the new company. The source explains this by saying that the new company intends primarily to work in the electricity market, while the capital company produces a lot of heat, and there are no market relations in this area and they will not appear very soon. However, it is quite possible that the reluctance to control the capital's energy company is caused by the high politicization of its business - even a small accident will result in a huge scandal. Therefore, if SUEK’s assets turn out to be higher in value than RAO’s shareholding, then, as a source close to the deal says, the difference “will be adjusted with money.” The fate of SUEK itself, according to him, has not yet been determined - after all, in fact, we are talking about merging businesses. Market sources do not exclude the possibility of an IPO of SUEK in the near future.
Thus, in the near future several large players will appear on the Russian energy market capable of investing in the electric power industry in the context of the imminent liquidation of RAO UES. In fact, the favorite will be the company created by Gazprom and SUEK. Other major players will be Viktor Vekselberg's Integrated Energy Systems and an energy company that will be spun off from Norilsk Nickel and will be controlled by Mikhail Prokhorov. All of them are quite loyal to the state, and therefore the government can entrust them with the right to participate in the sale of generating assets.