Russia’s UES has completed the first phase of its reorganisation with the spin off of the first two wholesale generation companies WGC-5 and TGC-5, which have become the first private generation companies in Russia created during the reform process.

Before the spin-off both the companies placed additional shares, raising RUB12.28 billion and RUB11.63 billion ($481 and $456 million) respectively.

Meanwhile, the sale of a stake held by the Russian Federation in WGC-3 has been completed as part of the second phase. The 11 % stake was purchased by A.P.Zavenyagin Norilsk Mining and Metallurgical Combine.

It was originally intended that the government stake would total just less than 20% but taking into account the results of redistribution of shares between State Holding, HydroWGC State Holding, and special holding companies, the volume of the government stake was adjusted.

UES’ holding in WGC-3 decreased from 37.1% to 26.02% as a result of the deal.