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Dubai World Pulls Out of a Power Deal in Russia

Dubai World has pulled out of $5.3 billion deal it had entered into with a Russian partner to buy Russia’s biggest wholesale power producer. The Dubai Government’s investment group withdrew from the deal to buy OGK-1 utility from RAO Unified Energy System due to poor market conditions.

The purchase deal that Dubai World had almost finalized along with its Russian partner, energy trade Roskommuenergo, was for a price equivalent to $516 per kilowatt of installed capacity. Dubai World had guaranteed its partner Roskummuenergo $100 million of the total amount up front.

Roskommunergo, formed in 2004, is chaired by Igor Kozhin, the son of Vladimir Kozhin, who has run the Kremlin’s property department since 2000, when he was appointed by then President Vladimir Putin.

Khaleej Times, UAE, September 23, 20-08

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