Reports suggest that the partial break-up of Russian power firm UES is on the way with a series of subsidiaries set to float on the London stock exchange later this year.

UES says that a number of investment banks have been approached to advise on the floats, which are likely to comprise five generation companies spun out of UES, among them Mosenergo, the generator catering for the Russian capital.

Investment is urgently needed in Russia’s dilapidated electricity infrastructure to cater for rising demand, driven by economic growth. Moscow has suffered from power blackouts in recent times as the current network is creaking under the strain.

The part-privatization plans laid out for UES are intended to raise the required funds, but could raise questions of corporate governance – especially in light of the recent Rosneft float controversy in London.