OREANDA-NEWS. The Board of Directors of RAO “UES of Russia” took a number of decisions to increase the authorized capital of OAO "UES FGC".

On 21 November 2005, the Board of Directors of RAO "UES of Russia" acting in the capacity of shareholder meeting of OAO "HydroWGC" approved the capital increase of OAO "UES FGC" through issuance of additional ordinary shares worth a total of RUB80 billion.

The additional issue of shares of OAO "UES FGC" was registered with the FSFM of Russia on 21 March 2006. Part of the shares worth RUB33.5 billion were purchased by RAO "UES of Russia" after the purchase had been approved by the Company's shareholders at the AGM in June 2006.

 In return for the additional shares, RAO "UES of Russia" contributed its shares in trunk grid companies spun off from regional energos, and the property relating to the Unified National Energy Grid (UNEG).

At the second stage, RAO "UES of Russia" will pay RUB10 billion for the additional shares of OAO "UES FGC". Approval of the above transaction will be submitted for shareholder approval at the EGM of RAO "UES of Russia" scheduled for 6 December 2006.