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. Last Updated: 07/27/2016

UES Grid Firms to Go Public

The power-distribution firms to be sold off first will most likely be the Northwest, Center and Volga and Siberian MRSKs, a top official at their parent company said Tuesday.

Once formed, the 12 interregional distribution companies, known in Russian as Mezhregionalniye Raspredelitelniye Kompaniye, or MRSKs, will control the country's regional power grids.

Many analysts see them as among the most undervalued assets in the sector.

Their parent company, Unified Energy System, is in the process of selling off all of its assets to raise investments and introduce competition to the power sector for the first time.

"We had set a strict deadline for bringing [these companies] onto the market by Apr. 1 [2008], but even if it is put off by a month, it will still happen in the spring," said UES's head of strategy Dmitry Akhanov.

UES is planning to spin off all of its subsidiaries and cease to exist by July 2008. The 12 MRSKs are being formed from the regional grids not belonging to the state-controlled Federal Grid Company, which owns the high-voltage network spanning the entire country.

This overarching network carries electricity between the regional grids, which take it to the end consumers.