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. Last Updated: 07/27/2016

RusHydro, Mitsui Plan Power Plant

Mitsui and RusHydro plan to invest 22 billion rubles ($704 million) in a Russian hydropower plant as Japan's second-biggest trader adds to its energy projects in the country.

Mitsui and state-controlled RusHydro signed an accord Thursday in Moscow to build the 320-megawatt Nizhne-Bureyskaya plant near the border with China, the utility said today in an e-mailed statement. The two companies will have equal stakes in the plant, Natalya Derevtsova, project manager for Mitsui in Moscow, said by phone.

"We consider Russian energy projects as having great potential," Derevtsova said. "We're also looking for the project to allow us to have direct sales to consumers."

The accord follows a visit by Prime Minister Vladimir Putin to Japan earlier this month, during which RusHydro agreed to build a wind plant with Mitsui and J-Power, Japan's largest electricity wholesaler, and review other energy projects. Mitsui is also looking to invest in Russia's biggest untapped uranium field together with state-run Uranium Holding ARMZ.

The Nizhne-Bureyskaya project is one of several plants planned for construction in the Amur region bordering northwest China. RusHydro is also looking for investors for the 400-megawatt Nizhne-Zeyskaya plant.

RusHydro cut investments last year by 29 percent because the global credit crunch limited access to financing.