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Armenian official says energy provider to account for share management deal
Ayots Ashkar, Yerevan
4 Aug 05
The Public Service Coordinating Commission [PSCC] in its letter
directed to the Director General of the Armenian energy networks
Yevgeniy Gladunchik has issued a final and resolute demand that all
the necessary documents substantiating the need for the management of
Armenian Energy Distributing Networks [AEDN] being committed from
Midland Resources Holding to Interenergo's trust management are
submitted within the next 15 days.
[Ayots Ashkar correspondent] What was the reason of such a resolute
demand?
[Robert Nazaryan, chairman of Public Service Coordinating
Commission] We needed reliable information to start more resolute
actions. Regrettably, this deal between Interenergo and Midland
Resources was a surprise to us. First we learned about the deal
from the press, then from RAO UES [United Energy System of Russia]
website and began to investigate. We sought explanations from the
head of the Midland Resources Alex Shnider and he replied that the
company did not give up the shares of the AEDN. At the same time he
said that the company was not keen to invest in the energy sphere.
The management of the AEDN was committed to a trust for making
investments and passing profits to Interenergo. Such a reply actually
raised a number of questions, because although even if this does not
mean selling of shares, if Midland Resources passes the profits from
the AEDN operations to another company, it still means something like
a sale actually took place.
The biggest problem is that Midland Resources insists it still owns 100
per cent of the AEDN shares, they just gave the right to Interenergo
to make investments and collect profits.
[Correspondent] Should the Midland Resources gain the PSCC's agreement
for making contract for the trust management?
[Nazaryan] In this case one may understand "trust management" as
committing AEDN to executive management or to management of shares. But
we still do not have the contract under which the Midland Resources
committed AEDN to the trust management of Interenergo. If we had this
document we would see what is happening. At present I can say with
reservation that they have broken the license conditions.
In particular, if Midland Resources gave the right for getting profits
to Interenergo, it should undoubtedly agree on this with the PSCC. On
the other hand, if the second party in the deal fulfils the license
activity in our energy market, it should also get our agreement. More
over, at present we cannot assess the relations between RAO UES
and Interenergo. What part of the shares belongs to RAO UES? We have
information that only 40 per cent of Interenergo's shares belong to RAO
UES. A question arises: who owns the other 60 per cent? We are giving
15 days to Midland Resources to answer our questions. I think this time
will be enough to submit the requested documents and to explain things.
[Correspondent] We have an impression that if the World Bank did
not pay attention to the problems of the deal between the Midland
Resources and Interenergo, the PSCC would not touch them.
[Nazaryan] I do not agree with this view. I think that the World
Bank and USAID made the backhand statements in particular regarding
the Armenian government and our PSCC. Actually, after getting the
news about the deal we did everything possible to get out from the
situation that emerged. I think in this situation the PSCC took the
balanced and correct steps.
From: Emil Lazarian | Ararat NewsPress
Ayots Ashkar, Yerevan
4 Aug 05
The Public Service Coordinating Commission [PSCC] in its letter
directed to the Director General of the Armenian energy networks
Yevgeniy Gladunchik has issued a final and resolute demand that all
the necessary documents substantiating the need for the management of
Armenian Energy Distributing Networks [AEDN] being committed from
Midland Resources Holding to Interenergo's trust management are
submitted within the next 15 days.
[Ayots Ashkar correspondent] What was the reason of such a resolute
demand?
[Robert Nazaryan, chairman of Public Service Coordinating
Commission] We needed reliable information to start more resolute
actions. Regrettably, this deal between Interenergo and Midland
Resources was a surprise to us. First we learned about the deal
from the press, then from RAO UES [United Energy System of Russia]
website and began to investigate. We sought explanations from the
head of the Midland Resources Alex Shnider and he replied that the
company did not give up the shares of the AEDN. At the same time he
said that the company was not keen to invest in the energy sphere.
The management of the AEDN was committed to a trust for making
investments and passing profits to Interenergo. Such a reply actually
raised a number of questions, because although even if this does not
mean selling of shares, if Midland Resources passes the profits from
the AEDN operations to another company, it still means something like
a sale actually took place.
The biggest problem is that Midland Resources insists it still owns 100
per cent of the AEDN shares, they just gave the right to Interenergo
to make investments and collect profits.
[Correspondent] Should the Midland Resources gain the PSCC's agreement
for making contract for the trust management?
[Nazaryan] In this case one may understand "trust management" as
committing AEDN to executive management or to management of shares. But
we still do not have the contract under which the Midland Resources
committed AEDN to the trust management of Interenergo. If we had this
document we would see what is happening. At present I can say with
reservation that they have broken the license conditions.
In particular, if Midland Resources gave the right for getting profits
to Interenergo, it should undoubtedly agree on this with the PSCC. On
the other hand, if the second party in the deal fulfils the license
activity in our energy market, it should also get our agreement. More
over, at present we cannot assess the relations between RAO UES
and Interenergo. What part of the shares belongs to RAO UES? We have
information that only 40 per cent of Interenergo's shares belong to RAO
UES. A question arises: who owns the other 60 per cent? We are giving
15 days to Midland Resources to answer our questions. I think this time
will be enough to submit the requested documents and to explain things.
[Correspondent] We have an impression that if the World Bank did
not pay attention to the problems of the deal between the Midland
Resources and Interenergo, the PSCC would not touch them.
[Nazaryan] I do not agree with this view. I think that the World
Bank and USAID made the backhand statements in particular regarding
the Armenian government and our PSCC. Actually, after getting the
news about the deal we did everything possible to get out from the
situation that emerged. I think in this situation the PSCC took the
balanced and correct steps.
From: Emil Lazarian | Ararat NewsPress