Russian Gazprom makes moves towards intergrated energy outfit
Russian gas giant Gazprom is buying major stakes in the country’s biggest power companies as part of its strategy to enter to electricity industry and create a fully integrated utility from well-head to wires. Gazprom already owns more than 10% of UES, the world’s largest electricity company, and a significant stake in Moscow’s Mosenergo. UES already buys about 75% of its gas from Gazprom and with plans to introduce commercially competitive electricity tariffs, Gazprom will be able to demand more for gas supplied to generators. Gazprom is also set to gain major oil assets this year following President Putin’s approval of a share swap between oil company Rosneft and Gazprom shares.