OREANDA-NEWS. On 27 August 2009 was announced, that in relation to RusHydro’s acting head Vasily Zubakin saying that after the accident RusHydro will find reasons to avoid fulfilling obligations under its contracts, RUSAL, as the largest consumer of energy generated by the Sayano-Shushenskaya Hydro Power Plant, states the following:

The statements by the acting head of RusHydro, a publicly traded company and a major state monopoly, in which he openly states that the company’s management will avoid the fulfillment of earlier signed contracts, is highly dangerous for all partners of RusHydro.  Following this logic, tomorrow the company could decide to refuse its obligation to investors, creditors, consumers and partners in joint projects using unforeseen circumstances as an excuse.

We are extremely surprised by such statement which also contradicts with the assignment of the PR President and Prime Minister not to allow an increase of energy prices for RUSAL in relation to the Sayano-Shushenskaya Hydro Power Plant’s accident.

When RUSAL and RusHydro signed agreements, they discussed the risks including emergencies and RusHydro took the responsibility for such situations in full, including these risks into contracted prices.

The situation when acting Chairman of the Board of RusHydro Mr. Zubakin openly states that wants to use the accident to avoid fulfillment of obligations questions RusHydro’s status as a serious business partner capable of being responsible for the obligations made.

This particular irresponsibility could have caused the largest in the history of Russia breakdown of the HPP, which took out of operation the energy system of Siberia, and became the reason of the crisis situation at the largest mono-city enterprises of the region.

Now Mr. Zubakin is trying to put all additional costs on its consumers that already incurred losses due to the accident and are now experiencing complications with the energy supply. Meanwhile these consumers are already having considerable expenses paying for backup capacities, which as the accident revealed do not secure the companies from limitations during emergency situations. Only the actions of the System Operator and proactive work of RUSAL’s specialists allowed to prevent the halt of the largest industrial enterprises which could have led to major social and economic consequences for Siberia and the entire Russian economy.  RusHydro just continued to make numerous press announcements.

It should be also noted that none of the RusHydro statements mention whether RusHydro is ready to take responsibility for what has happened at the Sayano-Shushenskaya Hydro Power Plant.  All the rhetoric is about what funds to get from where and how it tried to refuse from obligations putting the responsibility for its own inaction on the shoulders of the consumers. The company still cannot specify timeline and funds required to restore the Sayano-Shushenskaya Hydro Power Plant.

We believe that the management of RusHydro will stop doing constant PR. Holding daily press conferences, RusHydro hardly spares time to resolve concrete issues what its consumers are expecting from it.  It’s high time to act.