OREANDA-NEWS. September 3, 2007.  The Board of Directors of RAO "UES of Russia" approved the Company's participation in the establishment of Not-for-profit Partnership "All-Russia Combustion Engineering Research Institute" (NP "VTI").

The partnership is to be established on the basis of OAO "All-Russia Combustion Engineering Research Institute". The Institute is a national centre for knowledge generated in the 85 years of electricity engineering research in Russia. The scope of research work carried out by the Institute is expanding every year; the Institute has identified priority research areas to be investigated for decades to come. However, due the Centre's low profitability, potential owners are not likely to be interested in continuing the research business of OAO "VTI" for commercial reasons.

As a result, the most stable and appropriate form of organization for a national knowledge centre for the electricity industry, i.e. OAO "VTI", is that of a not-for-profit partnership.

RAO "UES of Russia", as the founder of NP "VTI", will contribute its 100 percent stake in OAO "VTI" as the initial contribution to the partnership's capital. The other founders, RAO UES subsidiaries, will contribute cash which will serve as a basis for the partnership's development and implementation of new tasks, primarily those related to the implementation of the RAO UES five-year investment Programme.

To further implement this resolution, the Board of Directors of RAO "UES of Russia" instructed the Company's representatives on the management bodies of the RAO UES subsidiaries and dependent companies to FOR their participation in the establishment of NP "VTI". These SDCs will include all thermal WGCs and TGCs, as well as the leading engineering centers and design bureaus.