Moscow. 30 June 2008. Today is the last day of operation of the world's largest
electricity monopoly, RAO "UES of Russia". A ceremony to close the Company was
held in the offices of RAO "UES of Russia" in Prospekt Vernadskogo. Chairman of
Management Board of RAO "UES of Russia" Anatoly Chubais lowered the corporate
flag. It was replaced by the flags of 24 energy companies created in the course of the
electricity reform. These flags were raised by the members of the Management Board of RAO
"UES of Russia".
During the ceremony, the letters "RAO" were removed from the Company's logo
on the facade of the RAO UES building. "RAO is the abbreviation of Russian
joint-stock company. This company is about to cease to exist, said Anatoly Chubais.
However, the Unified Energy System (UES) of Russia will continue to exist. Moreover, the
investment impetus created by the reform opens up new horizons for the development of the
The termination of RAO UES' activities brings to completion of the key phases of the
state-led reform of the electricity sector implemented in Russia since 2003. Established
in 1992, RAO "UES of Russia" went all the way from a company operating in the
conditions of a financial crisis to a blue chip of the Russian stock market with the
capitalization of over $50 billion. During the 15 years of its existence, RAO "UES of
Russia" put into operation 25,000 MW of generating capacity, tens of thousands of
kilometres of electricity transmission lines.
The Company's Board of Directors held over 500 meetings at which it considered over
5000 items of business. The Company's top managers flew in the aggregate over 500,000
flight-hours during their business trips. Nearly 10,000 children were born into the
families of the energy company.
In the course of the RAO UES restructuring, which was sought to raise large-scale
investment needed for the development of the electricity industry, an absolutely new
sector structure was created: the company's business was divided into competitive and
monopoly lines of business. Private investors came to the competitive sectors while the
state preserved its control over the infrastructure entities.
The reform attracted new owners to the electricity sector which brought over 945
billion Rubles of private investments. These funds will be used to finance the five-year
investment programs of the RAO UES companies under which over 43,000 MW of new generation
capacity is to be brought on line until 2012. All generation capacity to be brought on
line will operate on the competitive wholesale market which is one of the world's most
advanced, modern and efficient electricity markets.
With effect from today, RAO "UES of Russia" will cease to exist as a legal
entity. However, its legal successors will continue to operate in the sector: six
wholesale generation companies (WGCs), 14 territorial generation companies (TGCs),
RusHydro, Federal Grid Company, System Operator, IDC Holding, RAO ES of the East, and
INTER RAO UES. These companies with their new capabilities and resources will continue to
move towards the creation of a new market-based electricity industry in Russia.