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ENRON AND UNIFIED ELECTRICITY SYSTEMS OF RUSSIA SIGN 10-YEAR STRATEGIC ALLIANCE, AGREE TERMS ON $55 MILLION JOINT FINANCING PROJECT
FOR IMMEDIATE RELEASE: Monday, February 2, 1998
LONDON - Enron Corp. and Unified Electricity Systems of Russia (UES), Russia's largest electricity utility, today signed a 10-year strategic alliance and agreed terms of a US$55 million joint financing project as the first transaction under the alliance. The agreement was signed by Boris Brevnov, chairman of UES, and Kenneth L. Lay, chairman and CEO of Enron Corp., while they were attending the World Economic Forum in Davos, Switzerland.
According to Brevnov, "This alliance with Enron will enable UES to combine our experience in power generation, transmission, marketing and distribution to identify joint projects in Russia, Europe and Central Asia. I'm pleased this first transaction will provide us with important funding to upgrade power links to our key export markets."
Enron's Ken Lay described the alliance and loan as an "important step in Enron's relationship with UES and in our company's long-term strategy to actively promote and participate in competitive energy markets worldwide. We are pleased to be in partnership with one of the world's largest power companies and to have signed our first commercial transaction with them. We look forward to working with UES to identify other projects that can take advantage of our finance expertise, risk management skills and generation and transmission development capabilities. We are also very optimistic that the rapidly liberalising markets in Russia, Europe and Central Asia will create new electricity trading and marketing opportunities for both of our companies."
Editors Notes
Unified Energy Services of Russia (UES), also known as RAO UES Rossii, is the world's largest electric power utility. Based in Moscow the company owns and operates the country's 57,000 km national high-voltage grid as well as central and regional dispatch centres and substations. At its 35 power stations, it generates nearly 20% of Russia's total generation capacity. It also holds an equity majority in 52 of the country's regional electrical companies.
Enron's European activities were established in 1989 and are based in London. Enron Europe today employs more than 400 people, primarily in offices in Frankfurt, London, Moscow and Oslo. The company is also present in several other European countries. Enron is the market maker for electricity trades in Norway and is ranked among the leading spot gas and electricity marketers in the UK. In the UK it has developed, part owns and operates the 1875 MW Teesside Power Station, the world's largest privately owned CCGT power plant, and is also constructing the 790 MW Sutton Bridge power station in Lincolnshire. Enron's Moscow office opened in 1995.
Enron Corp. is the world's leading integrated natural gas and electricity company. Based in Houston, Texas, USA the company, which owns approximately $23 billion in energy-related assets, delivers physical commodities and risk management and financial services to provide energy solutions to customers around the world. Enron's internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."
Click here to download this press release in Microsoft Word format.
For additional information please contact:
Karen Denne - Enron
(713) 853-9757
Sergei Medvedev - UES
(7095) 220 4646
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