RAO UES History and Evolution

RAO UES has a rich history that spans over 100 years. It was founded in 1922 as a small power distribution company.

The company's early years were marked by rapid growth and expansion, with a focus on providing reliable and efficient electricity to the Moscow region. By the 1950s, RAO UES had become one of the largest power distribution companies in the Soviet Union.

Throughout its history, RAO UES has played a crucial role in shaping the energy landscape of Russia. Today, it is a leading player in the country's energy sector.

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RAO UES was established by Presidential Decree #932 on August 15, 1992, as an electric energy holding company.

The company was created to oversee most of the state-owned electric energy assets in Russia, including thermal and hydroelectric power plants, transmission lines, and research & engineering companies.

RAO UES owned more than 70 energy companies and over 40 power plants with federal-level importance, making it a significant player in the Russian energy sector.

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The company's first head was Anatoly Dyakov, who held the positions of president and chairman of the director's council.

In 1997, shareholders abolished the position of president and appointed a chairman of the board, Boris Brevnov, who was a personal friend of First Deputy Prime Minister Boris Nemtsov.

However, Brevnov's tenure was short-lived, as he was removed from his position in 1998 by the director's council, headed by Anatoly Dyakov.

After a series of power struggles, Anatoly Chubais was appointed chairman of the board, and Alexander Voloshin became chairman of the director's council in 1999.

The mid-2000s were a challenging time for RAO UES, as the company struggled to keep up with demand due to a decade-long practice of disinvestment.

The 2005 Moscow power blackouts were a significant failure for the company, highlighting the need for reform and investment.

Here is a brief timeline of key events in RAO UES' history:

The Russian Federation had a significant stake in RAO UES, owning over 50% of the shares directly or indirectly. The rest of the stock was held by minority shareholders who traded on the MICEX and RTS stock exchanges.

The company's management team is comprised of experienced individuals, with Aleksandr Lokshin serving as a Director/Board Member since June 24, 2010. Dmitry Shugaev also held the same position, starting from October 2, 2011.

Here is a list of some of the key individuals in RAO UES' management team:

The shareholders of RAO UES were a diverse group. The Russian Federation owned directly or indirectly over 50% of the shares.

The remaining shares were held by minority shareholders.

At the top of the company structure is the management team, consisting of experienced professionals who oversee the operations and decision-making processes. The team includes Directors and a Chairman.

Aleksandr Lokshin has been a Director/Board Member since 2010, bringing his expertise to the table at the age of 68. Dmitry Shugaev, another Director/Board Member, has been in the role since 2011, at 60 years young.

The Chairman, Igor Sechin, plays a crucial role in leading the company, having taken on the position in 2010 at the age of 65.

Here's a rundown of the key players in the management team:

In 1999, the debate over restructuring RAO UES began, driven by the need for capital investment in the electricity infrastructure, which could only provide a quarter of the needed funds.

The board of directors, acting as an arm of the Kremlin, charged Anatoly Chubais with creating a draft for restructuring by March 2000. Chubais's plan received initial approval in April 2000, but critics argued that breaking up the state monopoly would strip UES of its transmission grid and put power plants in the hands of foreign investors.

UES stock fell during the 18-month debate over restructuring, as shareholders worried they'd be left with the shell of a company.

The state took a strong hand in combating consumer debt and fuel shortages, with President Vladimir Putin threatening Gazprom with personnel changes if the gas company didn't comply with UES's fuel requirements.

A commission headed by Tomsk Province Governor Viktor Kress was established to formulate an alternative plan for restructuring, supporting vertically integrated regional companies.

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The reorganization of RAO UES started in 2006, with the first stage completed on September 3, 2007, and the second stage finished by July 1, 2008.

This reorganization led to the massive privatization of the power industry, aiming to attract around US$79 billion in investments.

The remaining RAO UES ceased to exist after its merger into UES FGC, a Federal Grid Company.