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. Last Updated: 07/27/2016

UES Hopes to Raise $40Bln by March

Unified Energy System aims to raise at least 1 trillion rubles ($40 billion) from share sales in units by next summer as the state passes power generation into the hands of investors, chief executive Anatoly Chubais said Tuesday.

The utility wants to complete share sales in 20 coal- and natural gas-fired generating companies by April, before a planned break up of the monopoly on July 1, Chubais said.

"We have time at least until the end of March, so we're not aiming to sell quickly and cheap," Chubais said.

The breakup of the power utility into generation, distribution and transmission companies was approved by UES shareholders at a meeting Friday, Chubais said. Ninety-five percent of shareholders approved the breakup, he added.

Chubais also told reports that the state would keep 76 percent of the Federal Grid Company and 59.9 percent of Hydro-OGK even after the UES break-up.

The Federal Grid Company, which controls high-voltage power lines, and Hydro-OGK, which will own more than 50 hydroelectric dams, have been deemed strategic assets that must stay under state control.

The proportions of the government stake in the Federal Grid Company and Hydro-OGK were based on decisions made at Friday's meeting.

Speaking to reporters Tuesday, Chubais said UES would not rush the sale of electricity producers TGK-9 and OGK-6.

The sale of wholesale generating company OGK-6 was delayed earlier this month due to poor liquidity conditions on global markets and weak investor demand.

On Monday, UES was also unable to conclude negotiations over the sale of TGK-9, and was forced to delay it. Chubais said talks for the sale of TGK-9 were coming along and that new strategic investors were taking part.

(Reuters, Bloomberg)