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. Last Updated: 07/27/2016

Evraz Buys Power Plant in Siberia

Steelmaker Evraz Group, part-owned by Roman Abramovich, won an auction for a Siberian power plant to secure electricity supplies for one its three Russian mills.

Investenergoproject agreed to pay 5.95 billion rubles ($227 million) for 93 percent of West-Siberian Thermal Power Plant, national utility Unified Energy Systems said Thursday. Investenergoproject was sold by Gazprombank to Evraz this year, bank spokesman Sergei Muravyov said.

The deal values the power plant at about 23 percent less than comparable listed companies, said Alexander Kornilov, a utilities analyst at Alfa bank in Moscow.

"We believe this discount is fundamentally justified by the plant's absence of heating networks and its one-customer status," Kornilov said.

Evraz won't comment until the transaction is completed, spokeswoman Irina Kibina said. The purchase must be approved by anti-monopoly authorities.