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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.
“Despite 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,” 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.
“Not 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 congress…that 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,” 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.
“The (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.”
“In case of the sanction regime exerting further pressure on the group’s counteragents, we may have more delays or suspension of implementation of the group’s 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 group’s business, its operating results, and future prospects,” 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.
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