OREANDA-NEWS. The Board of Directors approved the conclusion by RAO "UES of Russia" and ZAO "Inter RAO UES"* of an agreement for fiduciary management of shares in OAO "Severo-Zapadnaya CHPP", OAO "Kaliningradskaya CHPP-2", OAO "Sochinskaya TPP", OAO "Ivanovskie PGU", AO "Sangtudinskaya HPP-1", and OAO "Test Bed of Ivanovskaya TPP".

The development strategy of ZAO "Inter RAO UES" provides for the consolidation of the foreign and certain Russia-based generation assets which have not been transferred to the WGCs and TGCs.

The Board of Directors decided that the optimum approach to the company's restructuring would be to increase its authorized capital by transferring the shares held by RAO "UES of Russia" in AO "Sangtudinskaya HPP-1", OAO "Severo-Zapadnaya CHPP", OAO "Kaliningradskaya CHPP-2", OAO "Sochinskaya TPP", and OAO "Ivanovskie PGU" to ZAO "Inter RAO UES".

However, as the reorganization of RAO "UES of Russia" is scheduled to be completed on 1 July 2008, it appears advisable at this stage to take steps to transfer the shareholdings in the above companies and OAO "Test Bed of Ivanovskaya TPP" to ZAO "Inter RAO UES" for fiduciary management.