OREANDA-NEWS. On June 30, 2008 was the last day of operation of the world's largest electricity monopoly, RAO "UES of Russia", reported the press-centre of RAO "UES of Russia".

A ceremony to close the Company was held in the offices of RAO "UES of Russia" in Prospekt Vernadskogo. Chairman of Management Board of RAO "UES of Russia" Anatoly Chubais lowered the corporate flag. It was replaced by the flags of 24 energy companies created in the course of the electricity reform. These flags were raised by the members of the Management Board of RAO "UES of Russia".

During the ceremony, the letters "RAO" were removed from the Company's logo on the facade of the RAO UES building. "RAO is the abbreviation of Russian joint-stock company. This company is about to cease to exist, said Anatoly Chubais. However, the Unified Energy System (UES) of Russia will continue to exist. Moreover, the investment impetus created by the reform opens up new horizons for the development of the energy system.

The termination of RAO UES' activities brings to completion of the key phases of the state-led reform of the electricity sector implemented in Russia since 2003. Established in 1992, RAO "UES of Russia" went all the way from a company operating in the conditions of a financial crisis to a blue chip of the Russian stock market with the capitalization of over \\$50 billion. During the 15 years of its existence, RAO "UES of Russia" put into operation 25,000 MW of generating capacity, tens of thousands of kilometres of electricity transmission lines.

The Company's Board of Directors held over 500 meetings at which it considered over 5000 items of business. The Company's top managers flew in the aggregate over 500,000 flight-hours during their business trips. Nearly 10,000 children were born into the families of the energy company.

In the course of the RAO UES restructuring, which was sought to raise large-scale investment needed for the development of the electricity industry, an absolutely new sector structure was created: the company's business was divided into competitive and monopoly lines of business. Private investors came to the competitive sectors while the state preserved its control over the infrastructure entities.

The reform attracted new owners to the electricity sector which brought over 945 billion Rubles of private investments. These funds will be used to finance the five-year investment programs of the RAO UES companies under which over 43,000 MW of new generation capacity is to be brought on line until 2012. All generation capacity to be brought on line will operate on the competitive wholesale market which is one of the world's most advanced, modern and efficient electricity markets.

With effect from today, RAO "UES of Russia" will cease to exist as a legal entity. However, its legal successors will continue to operate in the sector: six wholesale generation companies (WGCs), 14 territorial generation companies (TGCs), RusHydro, Federal Grid Company, System Operator, IDC Holding, RAO ES of the East, and INTER RAO UES. These companies with their new capabilities and resources will continue to move towards the creation of a new market-based electricity industry in Russia.