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. Last Updated: 07/27/2016

Gazprom Seeks U.K. Power Assets

Gazprom is seeking stakes in E.On power assets in Britain as part of a broader asset swap deal between the two firms, Vedomosti reported Thursday.

Vedomosti quoted Gazprom sources as saying the request was made by Gazprom as the company is seeking to gain a bigger position in Britain and boost its power generation business.

A spokeswoman for Gazprom confirmed that the company was looking to expand to supply directly West European consumers but declined to confirm talks on British assets.

Last year, state-controlled Gazprom said it was interested in bidding for the Britain's largest gas utility, Centrica, as part of this strategy. The comments prompted some British politicians to voice concerns about Kremlin influence over British energy supplies.

Gazprom and E.On have been in asset swap talks for over a year as the German company wants to acquire 25 percent in Gazprom's large Yuzhno-Russkoye field, which will be the main source of gas for the new Nord Stream pipeline to Germany. E.On has offered Gazprom stakes in its gas and power firms in Hungary. Russian media have reported that Gazprom wanted more assets as it considered that its stake in Yuzhno-Russkoye was worth more than E.On's assets in Hungary.

Vedomosti said E.On controlled around 10 percent of electricity sales in Britain. It owns five power stations, including Killingholme, Taylor's Lane, Cottam Development Centre, Enfield and Connah's Quay in Wales.