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. Last Updated: 07/27/2016

OGK-1 May Be Used for Champion

OGK-1, the only power generator the government failed to sell to investors last year, may be used to create a so-called national electricity industry champion, Renaissance Capital said.

Shareholders in the company are likely to get an offer to swap OGK-1 shares for those of state-controlled utility Inter RAO, which this week received anti-monopoly permission to manage the government's stake in the generator, Vladimir Sklyar and Derek Weaving, analysts with bank, said in a report Thursday.

The anti-monopoly decision "takes OGK-1 privatization off the agenda," Sklyar and Weaving said. "OGK-1 is destined to be used to boost the balance sheet of Inter RAO to fulfill the government's ambition to create a national champion in the power sector."

Unified Energy System was broken up last June and the government pledged to focus on distribution.