VTB Bank and JSC Federal Grid Company of Unified Energy System (JSC FGC UES) have signed a Cooperation Agreement.
According to Andrey Kazachenkov, Deputy Chairman of FGC UES Management Board, “the document establishes general principles and procedures for interaction between the company and the bank for a wide range of banking services, including financing of current activities and investment projects of the company, organization of public offerings, lending to FGC UES employees, as well as financial consulting and asset management services.”
Operations under each business line will be regulated by separate contracts and agreements with regard to general practice and internal procedures of the parties, in accordance with the requirements of the applicable Russian legislation, including antitrust laws. “Therefore, the Agreement is not aimed at limiting cooperation between FGC UES and other banks but encourages long-term and mutually beneficial partnership relations between the parties”, Valery Lukyanenko, member of VTB Management Board, said.
The Agreement shall come into force on the date of its execution by the parties. It shall be effective for one year with an option of subsequent renewal.
VTB Group is a leading Russian financial group with a strong tradition in Russia and the CIS, and a presence in more than 20 countries around the world. The Russian government is VTB's major shareholder, with a holding of 85.5%. The remaining 14.5% of the shares are traded on the RTS and MICEX in Russia, and VTB's global depositary receipts are traded on the London Stock Exchange. VTB offers a wide range of services in corporate, retail and investment banking across Russia, certain other CIS countries and a number of countries in Western Europe, Asia and Africa. As of 9 months of 2009, VTB was the second largest financial group in Russia by assets (RUB 3,583.8 billion) and by deposits (RUB 1,518.4 billion). VTB is one of the top three retail banks in Russia with a network of 966 outlets in Russia and the CIS. In 2008, VTB launched its investment banking business, which operates from Moscow, London, Singapore and Dubai. For more information visit our website: www.vtb.ru
JSC FGC UES (www.fsk-ees.ru) was established on 25 June 2002 under the power sector reform program as a monopoly manager of the Unified National Electric Grid to ensure its maintenance and development. FGC UES operates power grid equipment in 73 regions of the Russian Federation, with a total land of over 13.6 million sq. km. The company maintains 118,000 km of electricity transmission lines and 758 sub-stations with a total transformer capacity of over 286,000 MVA, with voltage ranging from 35 to 1150 kV.