OREANDA-NEWS. October 16, 2012. Federal Grid Company of Unified Energy System ("Federal Grid" or "the Company") (MICEX-RTS, LSE: FEES) announces that Andrei Kazachenkov, First Deputy Chairman of the Company’s Management Board, took part in the Adam Smith 4th International Conference "Russian Power: Investment & Finance 2012" (Moscow). Forum delegates included: State representatives, the heads of the largest energy companies and investment fund portfolio managers, as well as Russia’s leading electric energy sector experts.

Presenting the report "Federal Grid’s Strategic Opportunities: New Challenges and Development Horizons," Mr. Kazachenkov emphasized Federal Grid’s key role in forming Russia’s energy infrastructure and spoke in detail about the Company’s plans for financing investment activities.

Mr. Kazachenkov pointed out the importance of developing long-term financing sources to implement large-scale infrastructure projects. He said: "The terms of any infrastructure project are long-term; this means they should be financed using debt instruments with long-term maturity. The global practice of infrastructure financing includes issuing long-term infrastructure bonds. To finance infrastructure projects, it is necessary to expand key borrowers access to long-term money. For this, it is essential to review the regulation of pension funds and insurance companies to focus them on financing the economy’s infrastructure needs, including via investing in infrastructure bonds. I have to point out that Federal Grid prepared a packet of proposals on changes in the regulatory base for infrastructure bonds and sent it to the regulators."