OJSC INTER RAO UES (IRAO) and the Italian company Enel have signed a memorandum of cooperation. This memorandum was signed as part of the extended interstate consultations that are taking place in the Kremlin, led by the Russian President Dmitry Medvedev and Italian Prime Minister Silvio Berlusconi. As reported by Enel, when signing the memorandums of understanding, Fulvio Conti, Director of Enel, said, "Alongside the contract signed in Rome with Gazprom (GAZP) for the joint development of gas fields in the Novy Urengoy region, today's memorandums will enable Enel to strengthen its positions in Russia - one of the most dynamic and strategically important markets. Once again, the agreements that have been reached show that we are strengthening our relationship with the key participants on this market. The memorandum signed with JSC INTER RAO UES provides a foundation for the joint development of commercial and industrial initiatives in Russia and neighboring states. The agreement signed with Russian Railways will enable a long-term cooperation and provide for a stable power supply for WGC-5". The memorandum of understanding signed with INTER RAO UES demonstrates that Enel and the Russian Government intend to continue promoting their mutual cooperation which was discussed on September 13 at the meeting between Igor Sechin, the Russian Prime Minister, and Fulvio Conti. The signing of this memorandum of understanding once again proves that the Russian Government attaches great importance to the prospective cooperation with Enel, considered to be a strategic partner of Russia on an international scale. Within the framework of the memorandums of understanding it is planned to set up a group of experts who will analyze projects on further cooperation. The team of experts will be in charge of: assessing the prospects of commercial and investment cooperation between Enel and INTER RAO UES in Russia and other countries in the field of nuclear and other conventional types of power; analyzing market liberalization and changes in the Russian law for preparing joint proposals to be submitted to concerned state authorities; exchanging the latest achievements in the power industry with an emphasis on the installation of digital electric meters. Enel has already implemented a pilot project on the installation of such meters in the Belgorod Region; exchanging information and experience to ensure safe power supplies in the Russian Federation and the Commonwealth of Independent States /CIS/. To strengthen the existing cooperation, Enel and Russian Railways have signed a memorandum of understanding regarding long-term electric power supplies, based on the adjustment of market prices. At present Enel, represented by RUSENERGOSBYT, a joint venture of Enel and ESN, its Russian partner, is the key electric power supplier for JSC Russian Railways. In 2008 RUSENERGOSBYT, the biggest power sales company in Russia, provided two thirds of electric power required by Russian Railways /32 GW out of the total of 45 GW/. Pursuant to the memorandum of understanding, electric power can be supplied on a long-term basis with a possible increase of supplies in future. The supplied power will be partly generated by WGC-5, power generating company managed and controlled by Enel, which will enable Enel to increase the integration of its industrial assets in Russia. As was earlier reported by PRIME-TASS, the memorandum of understanding envisages cooperation in various sectors, including engineering connected with design and exploration works in European countries. INTER RAO is also interested in Slovenia Elektrarna whose block of shares is owned by Enel. INTER RAO UES is an export-import operator that manages electric power assets both within and beyond Russia. The company is state-controlled. The total capacity of the power plants controlled by the company is close to 8 thousand MW. |
