OREANDA-NEWS. May 29, 2012. Federal Grid Company of Unified Energy System (“Federal Grid Company” or "the Company”) (MICEX-RTS, LSE: FEES), announces that its CEO Oleg Budargin held a working meeting with Renaissance Capital senior management, including Director of Utilities Research Derek Weaving, a well-known expert in the European electricity sector.

During the meeting the parties discussed the changes taking place in the Russian electricity grid sector and the possible consolidation of its two largest players – Federal Grid Company and IDGC Holding. Also discussed were the priorities and strategic goals for the sector, including increasing the efficiency and transparency of operations, the sector’s investment potential and respecting the rights of all shareholders and investors.

One of the main topics of discussion was the expectations of shareholders, investors and independent experts in relation to the current initiatives of the Russian Federation Government, the prospects for creating a single grid operator on the basis of Federal Grid Company and for the development of the electricity sector overall.

Derek Weaving noted the importance of modernising and rehabilitating the sector, and gave good marks to Federal Grid Company management’s efforts to maximise synergies between the transmission and distribution businesses within Federal Grid Company.

“The productive and successful financial management of Federal Grid Company with regards to the investor community, and the transparency of its financial and operational activities are important achievements. It will be important for this experience to carry over into the unified company,” Derek Weaver said.

 Renaissance Capital is a long-time partner of Federal Grid Company. In June 2011 the companies signed an agreement covering a wide range of investment-banking services, including support for Federal Grid Company’s equity and debt capital markets activity to finance its investment activities. Renaissance Capital was a lead manager of Federal Grid Company’s rouble bond placements (the company placed RUB 65 billion of bonds in 2011-2012 to finance investment projects and refinance existing debt).