Joint Stock Company Inter RAO UES (, short form: Inter RAO), traded as, is a diversified energy holding company headquartered in Moscow, Russia. Its business includes power and heat generation, electricity supply, international energy trading, engineering, design and development of electric power infrastructure. In addition to its assets in Russia it controls several energy companies outside Russia including thermal and hydro power plants, grid operators and energy traders. It holds a monopoly on the export and import of electricity in Russia. Inter RAO is one of the largest Russian public energy companies by

market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...

which exceeded US$10.5 billion at the end of 2011. In fiscal year 2011 the company reported a revenue of USD 18.24 bn (versus USD 15.28 bn in 2010) and net income of $1.41 billion (vs $614 million in 2010). At the end of 2011, Inter RAO Group had more than 47,000 employees. In 2021, the company's revenue amounted to 89 billion rubles.

History

Inter RAO was established in 1997 as a subsidiary of the Russian unified power company

RAO UES OAO RAO UES (OAO Unified Energy System of Russia; or ) was an electric power holding company in Russia. It controlled about 70% of Russia's installed electric capacity, 96% of its high-voltage grid and over 70% of its transmission lines. In add ...

. Its initial focus was international energy trading. In 2002, Inter RAO started exporting electricity from Russia and generating its own electricity. In 2005, Inter RAO made several acquisitions: * 50% stake in Ekibastuz GRES-2 Power Station * 25% plus 1 shares North-West Thermal Power Plant * 70% stake in TGR Energy * 51% stake in the Cuciurgan power station In early 2008, Inter RAO obtainted listings on the Russian stock exchanges MICEX and RTS. As a part of its reorganization, Inter RAO received several Russian power generation facilities including Sochi Thermal Power Plant, North-West Thermal Power Plant, Ivanovo CCPP and Kaliningrad CHPP-2. In the same year, Inter RAO purchased the remaining 49% stake in the Cuciurgan power station. In following years, the

Government of Russia The Russian Government () or fully titled the Government of the Russian Federation () is the highest federal executive governmental body of the Russian Federation. It is accountable to the president of the Russian Federation and controlled by ...

transferred the power companies shares remaining after the reform of RAO UES in the property of state-owned companies

RusHydro RusHydro (previous name: Hydro-OGK, ) is a Russian hydroelectricity company. As of early 2012 it had a capacity of 34.9 gigawatts. In late 2009, it was the world's second-largest hydroelectric power producer and is the country's largest p ...

, FGC UES, Rosimushchestvo, and Rosneftegaz to Inter RAO. That included transfer of 41% stake in Irkutskenergo, 65.8% of OGK-1, 3.24% of OGK-4, 26.43% of OGK-5, 24.9% of TGC-6, 34.21% of TGC-7, 30.54% of TGC-11, 20.24% of Kuzbassenergo, 21.27% of Bashkirenergo, 14.48% of Sangtuda 1 Hydroelectric Power Plant (in Tajikistan), and 100% of Razdan Thermal Power Plant (in Armenia). In 2009, Inter RAO shares were included in the MSCI EM Index. In the end of 2009, INTER RAO was ranked fifth in

Standard & Poor's S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is co ...

informational transparency rating of the Russian energy companies. In June 2018, board member Karina Tsurkan was arrested by the

Federal Security Service The Federal Security Service of the Russian Federation �СБ, ФСБ России (FSB) is the principal security agency of Russia and the main successor agency to the Soviet Union's KGB; its immediate predecessor was the Federal Counterin ...

, on allegations of spying on behalf of

Romania Romania is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern and Southeast Europe. It borders Ukraine to the north and east, Hungary to the west, Serbia to the southwest, Bulgaria to the south, Moldova to ...

. On 13 May 2022, Inter RAO subsidiary RAO Nordic announced to suspend deliveries of electricity to

Finland Finland, officially the Republic of Finland, is a Nordic country in Northern Europe. It borders Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bothnia to the west and the Gulf of Finland to the south, ...

and stopped them at midnight. The announcement came one day after Finland's president Sauli Niinistö and prime minister Sanna Marin had expressed their support for Finnish membership in the

North Atlantic Treaty Organization The North Atlantic Treaty Organization (NATO ; , OTAN), also called the North Atlantic Alliance, is an intergovernmental transnational military alliance of 32 member states—30 European and 2 North American. Established in the aftermat ...

(NATO). The move fits an ongoing pattern of economic sanctions and counter-sanctions in the wake of the

2022 Russian invasion of Ukraine On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...

Shareholders

Major shareholders of Inter RAO are Russian state-owned entities. As of August 2018, shareholders of Inter RAO were: * Rosneftegaz - 27.63% * FGC UES - 9.24% * Inter RAO Capital - 29.39% * Freely traded (minority shareholders) - 33.74% Boris Kovalchuk is the CEO of Inter RAO.

Operations

Electricity generation

Combined installed capacity of power plants operated by Inter RAO Group is approximately 28 GW. Inter RAO UES controls the following power generation assets. North-West CHP power station2

Russian power generating assets GRES-2

Power generation assets in other countries

Trading

The main export markets for INTER RAO are

Lithuania Lithuania, officially the Republic of Lithuania, is a country in the Baltic region of Europe. It is one of three Baltic states and lies on the eastern shore of the Baltic Sea, bordered by Latvia to the north, Belarus to the east and south, P ...

and

Belarus Belarus, officially the Republic of Belarus, is a landlocked country in Eastern Europe. It is bordered by Russia to the east and northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Belarus spans an a ...

. The following Inter RAO subsidiaries are responsible for international energy trading: * Eastern Energy Company (focused on export of Russian electricity to

China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

) * RAO Nordic Oy (

) * TGR Enerji (

Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...

) * Inter RAO Lietuva (

) From October 2021, Inter RAO has increased supplying electricity to

by 90% up from planned amount, within the terms of the 25-year agreement of 2012 with State Grid Corporation of China. At the end of the same month, China sent out a call to “Inter RAO” for nearly double current amounts of supplies of electricity by the end of the year 2021. According to Alexandra Panina, member of the board of “Inter RAO”, the request of Chinese partners will be ratified almost completely. In October 2021, Inter RAO announced electricity commercial supplies to

Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a landlocked country primarily in Central Asia, with a European Kazakhstan, small portion in Eastern Europe. It borders Russia to the Kazakhstan–Russia border, north and west, China to th ...

in November, due to its "inhouse" deficiency in this country. On May 14, 2022 RAO Nordic released a statement saying they were halting the import of power into Finland due to lack of payment. Power transmission halted at 2200 GMT May 14, 2022.

Power supply

Inter RAO Group operates seven Russian power supply companies.

Electric power distribution grids

INTER RAO Group controls two distribution grid companies in South Caucasus, Power Grids of Armenia and Telasi.

Engineering

Inter RAO develops its engineering business as a key component of its integrated business model. In engineering, Inter RAO plans to focus on design of energy infrastructure, coordination of construction, delivery and installation of equipment; installation, configuration and maintenance services; and manufacturing of boiler and turbine equipment. The company asserts that these initiatives of its engineering business will help Inter RAO secure at least 20% of thermal power plant engineering, construction and equipment market. List of main engineering businesses within Inter RAO Group:

References

External links

Corporate websiteINTER RAO on Google Finance
{{authority control Electric power companies of Russia Conglomerate companies of Russia Companies based in Moscow Russian brands Energy companies established in 1997 1997 establishments in Russia Companies listed on the Moscow Exchange Government-owned companies of Russia Companies in the MOEX