8 May 2015 14:00
Rosseti and State Grid Corporation of China consider potential joint projects worth up to $US 1bn as part of joint venture
08 May 2015, Moscow, Russia - JSC ROSSETI (LSE: RSTI) ("Rosseti" or the "Company"), the largest power transmission and distribution company in Russia, and State Grid Corporation of China (SGCC) today signed an agreement to establish a joint venture (JV) to invest in the reconstruction of electric grid infrastructure and new power capacity in Russia, and potentially abroad. The signing took place during the official visit of the Chairman of the People's Republic of China Xi Tszinpin to Moscow.
The agreement was inked by Rosseti CEO Oleg Budargin and SGCC Deputy Director General Du Zhigang.
The joint venture will invest in the construction, reconstruction and subsequent operation of electrical grid facilities. In addition, it will act as an EPC contractor for the construction of turnkey facilities, providing engineering, procurement and construction services in Russia and other countries.
Rossetti will own a 51% stake in the joint venture, while SGCC will own the remaining 49%.
"We anticipate that investments in these joint venture projects in the area of distribution and transmission lines could amount to up to $US 1 billion per year", said Oleg Budargin, CEO of Rosseti.
The projects will be financed in part by the shareholders themselves, with additional funds to be raised from Chinese and other international financial institutions.
For further information:
JSC ROSSETI
Maria Stepanova, Head of IR +7(495) 995 5333 (ext. 3961)
Yulia Martynova, IR +7(495) 995 5333 (ext. 3834)
EM
Thomas Kiehn +7 (495) 363 2846
Yuri Krebs +7 (495) 363 2840
JSC ROSSETI is the largest electricity transmission and distribution grid company in Russia. It is also one of the largest electricity transmission and distribution grid companies in the world by length of electricity lines and installed transformer capacity. JSC ROSSETI holds interests in and manages 16 distribution grid companies and transmission grid company in Russia. The Company together with its subsidiaries owns and operates 2.3 million kilometers of electricity transmission and distribution lines with a total installed transformer capacity of 750.9 GVA. The Company operates in 78 regions of Russia.