OREANDA-NEWS. The Board of Directors of RAO "UES of Russia" instructed the Management Board to make the necessary preparations for the capital increase of ZAO "Inter RAO UES" by transferring the shares held by RAO "UES of Russia" in OAO "Severo-Zapadnaya CHPP" ("North-West CHPP"), OAO "Kaliningradskaya CHPP-2", OAO "Sochinskaya CHPP", OAO "Ivanovskie PGU", AO "Sangtuda HPP-1" (i.e. the generation companies which did not merge with WGCs and TGCs).

The Board of Directors of RAO "UES of Russia" cancelled its previous decision of 25 November 2005 which provided for the disposal of the stake in OAO "Severo-Zapadnaya CHPP" (25 percent plus one share) owned by ZAO "Inter RAO UES".

The Board of Directors broadly approved the Development Strategy for ZAO "Inter RAO UES" and gave the Management Board the task to explore the possible ways in which the Government could build up a controlling stake in ZAO "Inter RAO UES", in light of the forthcoming reorganization of RAO "UES of Russia".