OREANDA-NEWS. June 20, 2011. The open joint-stock company Federal Grid Company of Unified Energy System (FGC UES JSC) and investment bank Renaissance Capital have signed a cooperation agreement, at a formal ceremony held at the St. Petersburg International Economic Forum. The agreement was signed by FGC UES Chairman of the Board Oleg Budargin, and Igor Kamenskoy, Chairman, Renaissance Capital.

The strategic goal of the cooperation agreement is to raise funds to finance FGC UES investment projects, aimed at improving the energy-efficiency of Russia’s economy by developing the country’s power system, with FGC UES and Renaissance Capital working as strategic partners.

Under the terms of the agreement, Renaissance Capital will offer a range of investment banking services, including the placement of FGC UES securities on the equity and debt capital markets, to provide for the latter’s investment requirements. The bank will also work to develop a financial risk-management strategy for FGC UES, and offer strategic financial consulting services.

“Long-term partnership with leading financial institutions like Renaissance Capital is a priority in the financial and economic policy of our company, which is now implementing a large-scale investment programme,” said Mr. Budargin.

Mr. Kamenskoy added, “FGC UES has great potential. It plays an important role in the Russian economy, and particularly in Russia’s energy sector. The agreement we have signed today is a significant step in establishing cooperation that is beneficial for the two companies; it brings the fast-progressing relations between Renaissance Capital and FGC UES up to a new level.”

Separate contracts and agreements will be signed to implement individual business projects listed in the agreement; these documents will comply with the in-house procedures of both parties, and with Russian law. 

The agreement comes into force on the date of its execution and is effective for one year, with a further extension possible.