The Russian power firm RAO UES is considering offering further shares in its subsidiary Mosenergo for purchase in a bid to fund its forthcoming investment program, reports suggest.

The RIA Novosti news agency reports that as much as $1.5 billion in shares could be issued as the Moscow energy supplier looks to fund the first stage of its 2006-2010 investment plans.

We intend to issue shares worth this sum, Mosenergo general director Anatoly Kopsov was quoted as saying.

We plan to carry out the share issue in two ways to avoid risks: to issue the shares in subsidiaries and shares in Mosenergo, each worth about $700-750 million.

The report added that Mosenergo is in talks with Gazprombank about the execution of the share issue, which would be open to both foreign and domestic investors.