Moscow, 2 March 2005. State registration has been granted to OAO "Urals and Volga Interregional Distribution Company" (OAO "Urals and Volga IDC") and OAO "North-West Interregional Distribution Company" (OAO "North-West IDC"). OAO "Urals and Volga IDC" was registered with the Inspectorate of the Federal Tax Service of Russia for Leninsky District, city of Yekaterinburg, and OAO "North-West IDC" was registered with Interdistrict Inspectorate No. 15 of the Ministry of Taxes and Levies of the Russian Federation for the city of St.-Petersburg.
Pursuant to order of RAO "UES of Russia", Alexey Bobrov (currently CEO of OAO "Urals Energy Management Company") was appointed Director General of OAO "Urals and Volga IDC". OAO "North-West IDC" will be headed by the Director General of OAO "Pskovenergo" Veniamin Pinkhasik.
Apart from Alexey Bobrov, the Board of Directors of OAO "Urals and Volga IDC" will include the following members: Alexander Chistyakov, First Deputy Chairman of the Management Board, OAO "UES FGC"; Andrey Perelygin, Chief of Corporate Management Department, OAO "UES FGC"; Alexander Sinenko, Chief of Legal Support Department, OAO "UES FGC"; Andrey Dyomin, Chief of Department for Regional Power Grids Management, OAO "UES FGC"; Oleg Yevseyenkov, Deputy Head of Business Planning Department of Corporate Center, RAO "UES of Russia"; Yulia Brovkina, Chief Expert of, Infrastructure Development Center of Reform Management Center, RAO "UES of Russia"; David Herne, Managing Director, Halcyon Advisors; and Mikhail Andronov, Director General, OOO "Rusenergosbyt".
The Board of Directors of OAO "North-West IDC" includes the following members: Alexander Chistyakov, First Deputy Chairman of the Management Board, OAO "UES FGC"; Mikhail Tuzov, Deputy Chairman of the Management Board, OAO "UES FGC"; Andrey Dyomin, Head of Department for Regional Power Grids Management, OAO "UES FGC"; Alexander Sinenko, Head of Legal Support Department, OAO "UES FGC"; Dmitry Akhanov, Head of Strategy Department of the Corporate Directorate of Reform Management Center, RAO "UES of Russia"; Maxim Zavalko, Chief of Corporate Center's Corporate Management Department, RAO "UES of Russia"; Veniamin Pinkhasik, Director General, OAO "North-West IDC", Director General, OAO "Pskovenergo"; Anton Klekovkin, Director, Investment Projects Department, ZAO "Interros" Holding Company; and Seppo Remes, President, Kiuru Partners.
The charter capital of each of the IDCs at the time of establishment is RUB10 million and is divided into 100 million ordinary shares. RAO "UES of Russia" is the only founder of the companies.
Information note: The Board of Directors of RAO "UES of Russia" approved the configuration of the Interregional Distribution Companies (IDCs) at the meeting held April 23, 2004. The configuration is based on the principle of maximum consolidation of companies to ensure sufficient assets and high liquidity of IDC shares on the stock market. This is expected to result in an additional growth in their market capitalization.
The principles of the approved IDC configuration are as follows:
- territorial adjacency of the Distribution Companies (DCs) that are to be united within the IDC (creation of companies in a single territory will help minimize the operational staff and increase management efficiency);
- comparable aggregate book value of the IDCs (satisfaction of this criterion will ensure, whenever possible, comparable value of the future companies);
- comparable total length of the distribution lines owned by DCs that are to be transferred to the respective IDCs (satisfaction of this criterion will ensure, wherever possible, comparable conditions for each IDC).
On that basis, the following configuration was approved for the Interregional Distribution Companies (IDCs):
- IDC-1 within the IES of Center and the IES of North Caucasus;
- IDC-2 within the IES of North-West;
- IDC-3 within the IES of Urals and the IES of Middle Volga;
- IDC-4 within the IES of Siberia.
Decision on the establishment of IDC-5 in the Far East of Russia will be taken in the future taking into account the resolutions relating to the regional energos' restructuring.
The establishment of such number of companies will help create a competitive environment for the IDCs' managerial teams and make it possible to compare their performance.
The resolution to establish OAO "Center and North Caucasus IDC", OAO "North-West IDC", OAO "Urals and Volga IDC", OAO "Siberia IDC" as wholly-owned subsidiaries of RAO "UES of Russia" was approved by the Board of Directors of OAO RAO "UES of Russia" at its meeting held on 1 October 2004. After the establishment of the IDCs and registration of the first share issue, it is planned to announce a second issue. Consideration for the second issue of shares is to be paid in the shares of Distribution Companies (DCs) which will be received by RAO "UES of Russia". During the additional share issue, minority shareholders in the DCs will be given an opportunity to exchange their DC shares for additional shares in the IDCs on the same terms and conditions as RAO "UES of Russia".
| 
.jpg){kind=small}
