Zhukov described as "groundless" the media reports alleging that the federal government has decided to nationalize this and other big energy producers. But the government will have to honor the court's decision on the Sayano-Shushenskaya plant, "whether we like it or not," he said, assuring that every effort would be made to ensure that the interests of minor share holders were not infringed upon. He also said that no actions toward changing the plant's status would be made while court hearings were on.
This past March, an arbitration court of Irkutsk declared null and void the deal for the privatization of the Sayano-Shushenskaya plant, ruling that it be returned into public ownership. The government of Khakassia, an autonomous republic in Siberia, was the plaintiff in the case. Earlier this week, Zhukov instructed the Economic Development and Trade Ministry to consider the situation around the electricity plant.
Economics Minister Herman Gref has forwarded a letter to Prime Minister Mikhail Fradkov, proposing that the federal government should appeal against the Irkutsk court's decision, a source close to the Cabinet told RIA on Friday.
The Sayano-Shushenskaya plant, based in Khakassia, is Russia's largest hydro-electric power station. Its production capacity is 6,721 megawatts and its average annual output is 24.5 billion kilowatt/hour.
The Russian electricity giant Unified Energy Systems holds a 78.9 percent stake in the facility. Under the deal struck in 1994, the government of Khakassia got the privilege to purchase electricity for its domestic needs at the Sayano-Shuskenskaya plant's base prices for the period through 2004.
In April 2003, the Khakassian government lodged a suit against the UES with the Irkutsk court of arbitration, pushing for the deal to be invalidated. Parallel to that, it sent to the corporation an amicable draft agreement, proposing that the privilege of buying electricity at base prices should be extended to 2020. The UES turned these terms down.
After its ruling nullifying the privatization of the Sayano-Shushenskaya plant came into force, the Irkustk court sent a letter to the Russian Cabinet, asking it to authorize an individual or a body that would accept the facility back into the federal hands. UES spokesperson said the corporation would appeal the decision with the Supreme Court of Arbitration.
At this point, it is unclear which legislation will enable the transfer of the Sayano-Shushenskaya electricity plant into public ownership.
