Inter RAO Group and the Government of the Republic of Tatarstan have concluded a cooperation agreement in order to promote economic development, create favorable conditions for dealing with the key social and economic issues in the region, improve energy efficiency, encourage the development of modern high-tech production, and implement joint projects in the energy sector and industry. The agreement was signed by Boris KOVALCHUK, Chairman of the Management Board of Inter RAO, and Rustam MINNIKHANOV, President of Tatarstan.
Areas of cooperation include leveraging the scientific and technical potential of Tatarstan in order to implement joint projects in the energy sector and industry; creating conditions for effective implementation of investment and innovative projects of Inter RAO Group aimed at developing the energy sector and industry in Tatarstan and other regions of the Russian Federation; and exploring the possibility of providing services related to energy saving and improvement of energy efficiency in order to reduce the energy intensity of Tatarstan's gross regional product.
As part of this agreement, Inter RAO Group has acquired a stake in INVENT, a Russian production and engineering group of companies. Due to this financial investment, the share of Inter RAO Group in the authorized capital of INVENT will total 33%, making it possible to guarantee a return on this investment in the medium term.
A strategic partnership between Inter RAO Group and INVENT will make it possible to create additional shareholder value and encourage the development of import substitution in the Russian electric power industry. In addition, it will help provide Russian enterprises with modern products and achieve greater synergy with the existing business of Inter RAO Group. LLC INVENT is one of the largest Russian producers of power cables and transformer substations, as well as pre-insulated pipes and fittings for heat generation and supply companies. The company owns a plant located in Kazan. It is the only plant in Russia producing high-voltage cable for 330 kV and cable with wide cross-sections.
"We are happy to encourage investment and innovative development of power and industry facilities in the Republic of Tatarstan," said Boris KOVALCHUK, Chairman of the Management Board of Inter RAO. "This will be win-win cooperation. As part of the deal to acquire a stake in INVENT, Inter RAO Group will be able to use the production site for developing a related business area: manufacture of specialized products for the electric power industry. Besides, we are looking forward to achieving synergy during cooperation with the largest consumers of INVENT products and with the enterprises of our Group."
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Inter RAO Group is a diversified energy holding serving various segments of Russian and international electric power industry. The Group is the leading exporter and importer of electricity in Russia actively increasing electricity generation and sales, and developing new lines of business.
The corporate strategy of Inter RAO is focused on making Inter RAO a global energy enterprise, a key player in the global energy market, and Russia's leading electric utility by energy efficiency. Inter RAO Group owns and operates approximately 32 GW of installed power generation capacity.