UPDATE: RusHydro says may fall under Western sanctions in future - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

UPDATE: RusHydro says may fall under Western sanctions in future

(Adds details in paragraphs 5Ц9)

MOSCOW, Feb 2 (PRIME) -- Russian hydropower giant RusHydro does not rule out falling under the U.S. or E.U. sanctions, even though it sees no reason for that, the company said on Friday in its Eurobond prospectus.

УDespite the fact that the company has no reason to think that it may become the target of European or American sanctions, there is no certainty that this would not happen in the future. If the E.U. or U.S. sanctions target the Russian power sector or groups, they will likely hurt the company on several questions,Ф the prospectus read.

The company thinks it would not be able to cooperate with certain individuals and companies, to carry out settlements in U.S. dollars, to raise financing from investors or international debt markets, and to use data exchange systems if sanctions are imposed.

УNot a single individual or legal entity within our group of companies was included in the sanction lists by any competent authority. Still, on January 30, 2018 the U.S. Department of the Treasury published a report for the congressЕthat included Chairman of our Board of Directors Yury Trutnev, Chairman of the Management Board Nikolai Shulginov, and Member of the Board of Directors Andrei Shishkin,Ф the company said in the prospectus.

The company also said that delays in the launches of two power plants also happened due to the Western sanctions -- the launch of the central heating and power plant in Sovetskaya Gavan in the Khabarovsk Region was delayed to 2019 from 2017, and the launch of the first stage of the Sakhalin GRES-2 power plant was delayed to 2018 from 2017.

УThe (RusHydro) group had delays in construction of several thermal power plants in the Far East as general contractors that were connected to the family of Arkady Rotenberg were unable to raise money for construction or provide necessary guarantees on prepayment for the company due to the sanctions of the U.S. and the E.U.Ф

УIn case of the sanction regime exerting further pressure on the groupТs counteragents, we may have more delays or suspension of implementation of the groupТs plans for construction, as well as implementation of other business plans of the group. In its turn, this may exert a further unfavorable impact on the groupТs business, its operating results, and future prospects,Ф the company said.

In 2014, relations between Russia and the West deteriorated to their worse since the Cold War due to a military conflict in Ukraine. The West introduced sanctions against some Russian individuals and firms and further against the energy and banking sectors.

In response, Russia limited food imports from some countries. The list included meat, seafood, vegetables, fruit, dairy products. The restrictions are in effect until the end of 2018.


02.02.2018 17:21
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 86.8258 -0.3464 11 aug
USD 73.7750 +0.1374 11 aug
Stock Market Indices
1D 1W 1M 1Y
rtsi 1267.96 -0.27 18:50 10 aug
micex 2960.78 -0.39 18:50 10 aug
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 187.27 +0.02 19:13 10 aug
lkoh 5095.00 +0.14 19:13 10 aug
rosn 367.20 +0.01 19:13 10 aug
sber 225.14 -0.94 19:12 10 aug
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 86.6850 -0.2275 14:59 10 aug
USDTD 73.4725 -0.1600 17:44 10 aug