TGK-1 Plans to Invest 40Bln Rubles

TGK-1, a power generator based in St. Petersburg, kept a plan to spend 40 billion rubles ($1.3 billion) this year to upgrade and expand power plants even as nationwide demand for electricity slumps.

TGK-1, part-owned by Gazprom, expects to borrow as much as 15 billion rubles by April and sell new shares to finance the upgrades, CEO Boris Vainzikher told journalists outside St. Petersburg on Tuesday.

The company is turning to a bank loan after delaying a 5 billion ruble bond sale at the end of last year, he said.

Russian power demand fell an annual 9.7 percent last week as industrial production slowed and prices in the country's most populated European and Ural Mountains region dropped 32 percent from a year earlier, according to the Market Council, a nonstate regulator for the power industry.