FAS, Economy Min may block Gazprom, KES Holding merger

MOSCOW, August 4 (Itar-Tass) —— Russia’s Federal Anti-Monopoly Service /FAS/ welcomes the position of the economy ministry on merger of energy assets of Gazprom and the KES Holding – the Ministry of Economic Development is against the merger.

FAS “is satisfied with the position of the Ministry of Economic Development,” FAS Head Igor Artemyev said on Thursday. “We share the positions, we have discussed it at the working level.”

“Usually, if we and the economy ministry support a point of view, it wins often,” he said.

The deal contradicts the decisions the state quits the capitals of companies, which are working in competitive markets, and it contradticts the norms of the electric energy reforms, the ministry is sure.

Gazprom Energyholding and KES of Viktor Vekselberg, the biggest privately owned energy holding, announced about the merger plans in early July. At that time, FAS’ head said that the deal “is not preferable from the point of view of the anti-monopoly legislation” and the service’s position about it “will be very cautious.” If the deal happens, it may organise a company with capacities of about 52 Gaga Watts, which is twice more than the state-owned Inter RAO company has and about by a quarter more than RAO UES, closed in 2008, had

 

 

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