Russian Railways Wins TGK-14 Stake

Russian Railways won an auction for the government's stake in TGK-14, a key power supplier along the Trans-Siberian Railroad, Unified Energy System, the seller, said Monday.

State-run Russian Railways and its partner ESN Group agreed to pay 0.74 kopeks (0.03 cents) per share for control of the Khabarovsk-based generator, UES spokeswoman Marita Nagoga said.

The share sale raised 1.8 billion rubles ($76 million) and is the first of two steps in the auction process, UES said in a statement. The winning investor is also obligated to take part in a sale of new stock that may raise as much as 4.29 billion rubles.

The power utility is also the nearest provider to Udokan, the country's biggest untapped copper deposit, which is being auctioned this year. Russian Railways and the country's biggest miner, Norilsk Nickel, which has a 28 percent stake in TGK-14, are rival bidders for the copper field.