The first contract in Russia within the framework of the Kyoto Protocol, signed between the Orenburgenergo and Khabarovskenergo open joint-stock companies and the Danish Environmental Protection Agency, could be cancelled, UES' press service cited a letter to Prime Minister Mikhail Fradkov as saying.
"If the government fails to approve the contract by late October, the Danish party will avoid it, which will undermine foreign investors' confidence in the Russian carbon market," the message said.
The letter also says that the projects related to the Protocol are tightly scheduled, with the deadline for the sale of quotas on the international market fixed for 2012.
Andrei Gorkov, the general director of UES' Energy Carbon Fund, said Russia would yield $1.5 billion from the trade in quotas on the emission of carbon dioxide under the Kyoto Protocol in 2008-2012.
UES and Sistema signed the agreement on cooperation within the framework of the Kyoto Protocol in August 2005.
