OREANDA-NEWS. The Board of Directors of RAO "UES of Russia" stated that it would be advisable to use the proceeds from the sale of shares in energy retail companies' (ERCs) in 2007 to pay the debts incurred by RAO "UES of Russia" in connection with the acquisition of 22.43% shares in OAO "Power Machines".

This measure will help reduce the amount of Company's accounts payable and optimize its balance sheet structure in the course of the Company's reorganization.

The Company will use for the purpose the funds generated by the sale of the ERC shares owned by RAO "UES of Russia", less the expenses relating to the sale of such assets, including full payment of taxes, appraisal and auction costs, and other required payments.