Statkraft and the Russian Federal Hydropower Generating Company (Hydro OGK) to cooperate within business development in the Russian hydropower industry

16.12.2005 08.00 | pressrelease

Statkraft, Hydro OGK and the Norwegian-Russian company Rosnor Energo signed on December 10th a memorandum of understanding with respect to further cooperation in the Russian hydropower sector.

In the agreement, signed by Bård Mikkelsen, CEO and President of Statkraft, Viacheslav Sinyugin, CEO of Hydro OGK, and Ragnar Ottosen, CEO of Rosnor Energo, the parties are set out to analyze possibilities for further exploration of the Russian hydropower resources. The parties shall also concider cooperation of technology and market knowledge to enhance utilization of hydroelectric production units.

Considerations of civil-engineering constructions of hydroelectric power plants, including Norwegian capital is planned.

"This agreement in principle is an important signal of our interest in the Russian market. Both Statkraft and Hydro OGK are leading players in the fields of hydropower and power trading, and now our two companies will work together to explore mutual business opportunities," says Bård Mikkelsen.

"The signed agreement is a very positive moment not only for Hydro OGK but also for the whole Russian electric power industry. It shows that interest from foreign investors to the sector is substantial," says Viacheslav Sinyugin.

" The Russian Federation has probably the world's largest potential for investments in renewable energy. This agreement between two leading electricity producers is a very important step in order to increase the global role of renewable energy," says Ragnar Ottosen.

About the companies:

With a total power production of 42 TWh, the Statkraft Group is the third largest producer of power in the Nordic region, as well as the second largest producer of power based on renewable energy sources in Europe. Including the subsidiaries Skagerak Energi and Trondheim Energiverk, the group has some 2,000 employees.

The Federal Hydrogenerating Company, Hydro OGK, was established in December 2004 during the reform of the Russian electric power industry. At the end of the reform - by the end of 2006 - Hydro OGK will unite about 50 Russian hydroelectric power stations with a generation capacity of 23 GW.

Rosnor Energo, established in 2003, is a joint Russian-Nordic advisory services and investment company. The company's aim is to use valuable experience as a platform for cross border cooperation promoting investments in the Russian energy sector.