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. Last Updated: 07/27/2016

Gref Assures Investors on UES Shakeup

APGref giving a speech in Singapore on Tuesday. He said changes may be made to UES assets under state control.
SINGAPORE -- Economic Development and Trade Minister German Gref assured investors Tuesday of the principal of pro-rata distribution of assets in a complicated restructuring of power monopoly Unified Energy Systems, but hinted at changes concerning assets that would stay under government control.

"Regarding the proportional division, I think there will be no changes, but concerning the details relating to the fate of different assets which will go under government control, there I think there will be [changes]," Gref said.

Gref was speaking at a Russian business conference in Singapore. He gave no details and did not elaborate on the likely changes.

Vedomosti reported Tuesday that the administration of President Vladimir Putin would hold a meeting on the reform of the utilities sector this week, where it would likely discuss, and possibly change, the UES breakup plan.

Under politically fraught reforms, UES, a holding company with some 700,000 employees, is spinning off its assets into generation, transmission and sales units and offering investors equity stakes in a host of generation companies.

British newspaper The Guardian reported chief finance officer Sergei Dubinin as saying Tuesday that the company wants the London Stock Exchange to waive one of its rules to allow the company to sell shares in some of its regional companies,

To list shares in London, companies have to present three years of accounts, the newspaper said.

"We have only two to 2 1/2 years," the newspaper cited the UES official as saying. "There are special exemptions sometimes so we hope that we can convince [the LSE] that two years will be enough," Dubinin said.

(Reuters, Bloomberg)