MOSCOW, November 24 (RIA Novosti) - Russian energy giant Gazprom said Thursday that its expansion into the electric energy sector was strategically vital.
"The development of this business will provide vertical integration, cement Gazprom's position as a global player on the international energy market and promote long-term growth of its value," the company said in a press release summarizing its board meeting.
Gazprom said the majority of global energy companies combined production, transportation, processing and the sale of hydrocarbons with the electric power business.
"The ensuing synergy effects enable [them] to use acquired technological and management experience to improve the performance of each business," the company said.
Gazprom's electric power plants that run on gas produce 45% of Russia's electric power.
Gazprom said in late October that it had consolidated 10.5% of Russian power monopoly Unified Energy System stock.
In July, Gazprom purchased Gas Energy Company, which owns 5.3% of the UES stock, for $138.36 million, increasing its UES share from 5.2% to 10.5%.
Gazprom repaid the $484.42 million credit in July that Gas Energy Company had taken to buy the 5.3% UES stock.
