Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

UES to Sell Turbine Stake By December

DUSHANBE, Tajikistan — State utility Unified Energy System will sell its 25 percent stake in turbine maker Power Machines to a Russian investor by the end of November, UES chief executive Anatoly Chubais said Friday.

"Power Machines will be sold to a Russian private strategic investor in a closed tender. I am categorically against the raising of Siemens' stake in Power Machines," Chubais said.

Germany's Siemens holds 25 percent plus one share in Power Machines, the country's largest producer of technology for power plants, but regulatory agencies have not allowed the company to increase its stake. Billionaire Alexei Mordashov, who owns steelmaker Severstal, purchased in September a 30.4 percent stake in Power Machines from Interros holding company.

Analysts said Mordashov's main rival for control of Power Machines was billionaire Oleg Deripaska, whose Basic Element investment vehicle has received regulatory approval to build up a stake of more than 50 percent.

As UES sells off its takes prior to being wound up in June, Chubais has been vocal in welcoming foreign investment to the sector, especially into UES power-generating companies.

But when it comes to Power Machines, he has been careful to toe the line of the government, the majority shareholder in UES, which sees machine building as a strategic industry that must remain under Russian control.