UC Rusal:The negotiations about the purchase of Onda hydro power plant and power lines has stopped

The negotiations about the sale of the Onda hydro power plant by Gazprom Energoholding to UC Rusal have  stopped due to a triple difference in the assessment of the asset. The disagreement of the parties has been discussed with the Ministry of Energy and vice-PM for fuel and energy sector, Arcady Dvorkovich several times, though the parties didn’t come to any agreement. Besides, UC Rusal could have obtained the power lines connecting the station with Nadvoitsk aluminium plant, though Rossiyskie Seti considered, it was more profitable to operate the lines than sell them.

The Onda hydro power plant (included in Territorial Generating Company-1 of Gazprom Energoholding) will hardly be sold to UC Rusal, General Director of Gazprom Energoholding (GEH) Denis Fyodorov claimed yesterday. As he reported, UC Rusal was not satisfied with the market evaluation of the plant made by Ernst & Young at the request of the holding. UC Rusal claimed at the latest governmental meeting that almost triple reduction of the price was needed, Fyodorov explained. Alexander Seleznyov from VTB-Capital evaluated the hydro power plant (80 megawatt) in 1.3-1.7 billion RUR.