Alstom Grid will own 51% stake in the JV, while Soyuz will hold the remaining 49% stake.

Under the contract, both firms will manufacture 110-220kV circuit breakers and the world’s first 500kV circuit breakers that can operate at severe temperatures down to -60 °C.

The companies will also introduce a range of products, including disconnectors and gas-insulated substations.

Soyuz’s high voltage switchgear factory at Mozhaisk, near Moscow, will be used to manufacture the equipment.

Alstom said the improved product range will contribute to the significant upgrade of electricity transmission and distribution system in Russia, spanning more than 2.1 million kilometres throughout the country.

The company noted that the Russian grid market represents €1.5bn with an annual average growth of 10% due to the country’s increasing demand for electricity capacity and its need to upgrade existing equipment.