PRESS: RusHydro wants 93 bln rbl from budget to cover debts

MOSCOW, Feb 3 (PRIME) -- Russian state-controlled hydropower giant RusHydro has asked the government for 93 billion rubles to cover debts of Far East Generating Company that manages thermal power plants in the Far East, Kommersant business daily reported on Friday.

RusHydro CEO Viktor Khmarin said in a letter to President Vladimir Putin that debt emerged because regulates power tariffs in the Far East, while coal is sold at market prices.

Khmarin said that the growth of the average weighted coal price in 2022–2023 is two times higher than the fuel price included in the tariffs. The tariff revenue does not cover even operating and investment costs of Far East Generating Company, and the subsidiary’s loss widened to 36.6 billion rubles in 2022 from 4.7 billion rubles in 2017, the business daily reported quoting Kmarin’s letter.

Deficit and a rapid increase of coal prices in the Far East happened because the coal companies decided to export coal in the wake of rising international prices. Exports are a priority for the coal companies in the Far East, Khmarin said.

RusHydro ‘s board of directors has already decided to issue a 93 billion ruble interest-free loan to the subsidiary in order to prevent the unit’s bankruptcy.

In late December 2022, Putin ordered Prime Minister Mikhail Mishusin, Deputy Prime Minister Alexander Novak, and Finance Minister Anton Siluanov to solve the problems, the business daily reported.

(70.0414 rubles – U.S. $1)

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