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Vladimir Putin criticizes tycoons who underinvest in power
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Vladimir Putin criticizes tycoons who underinvest in power
SAYANO-SHUSHENSKAYA DAM, Russia
Wed Feb 24, 2010 1:45am EST
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Russia Putin scolds tycoons who underinvest in power
12:42am EST
SAYANO-SHUSHENSKAYA DAM, Russia (Reuters) - Russia's prime minister, Vladimir Putin, told four businessmen their companies faced fines and would not be able to sell power at market prices as a result of underinvesting in the sector.
World | Russia
"During the crisis we did everything we could to support you," Putin said on Wednesday at the Sayano-Shushenskaya hydropower plant. "The crisis is fading away so I ask you to fulfill your obligations."
The four companies are OGK-3 controlled by Vladimir Potanin, TGK-2 controlled by Leonid Lebedev, TGK-4 controlled by Mikhail Prokhorov, and Complex Energy Systems controlled by Viktor Vekselberg.
Putin said underinvesting firms faced fines and would not be able to sell power at market prices nor be able to reap the benefit of the long-term power market being created in Russia.
Putin said state-run power firms and foreign power companies such as Enel, Eon and Fortum were sticking to investment obligations. "Meanwhile, our domestic investors have run away," he said.
Putin said 66 billion roubles ($2.20 billion) out of 450 billion raised by the power sector during reform carried by former chief of state power monopoly RAO UES Anatoly Chubais, were used for "speculative purposes".
"They received the money from the share issues to develop the sector and used them for other purposes. This is simply not on," Putin said, adding only 250 billion roubles were invested.
"We had hoped the owners will take a responsible position. Unfortunately, not everyone has taken it, citing the crisis and lack of demand," he said.
Putin said only 38 out of 100 power plants planned for construction this year were currently being built while work has not yet started at 45 power plants.
January power consumption returned to the pre-crisis level of 103 billion MW due to cold weather, he said.
($1 = 29.99 roubles)
(Writing by Gleb Bryanski; Editing by Dan Lalor)
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