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. Last Updated: 07/27/2016

Utility May Default

Mosenergo, the power utility that serves Moscow, may have to default on some financial obligations in the next few years, Prime-Tass quoted the company’s head as saying Tuesday.

"Mosenergo’s financial situation is extremely difficult, especially for the next two to three years," the news agency quoted CEO Alexander Remezov as saying, adding that Mosenergo would still finish the year with a profit.

"The problem may even become one of refusing [to honor] some financial obligations. I do not know yet in which form that might happen. Plus we have huge obligations to foreign investors, which also have to be redeemed. We do not see any resources for that so far."

Mosenergo has a $200 million Eurobond due in 2002.

Remezov said Mosenergo had 15 billion rubles ($540 million) of debts and was owed 16 billion rubles. "The overall estimate of the financial situation is very difficult," Remezov said.