The Board of Directors approved the termination of RusHydro’s participation in Upper Naryn HPPs CJSC by selling 2.5 million of its ordinary registered shares, or 50 percent of the share capital, in favor of Electric Stations OJSC at a price determined on the basis of an appraiser’s report. The decision was made at a meeting of the Board of Directors.
Upper Naryn HPPs CJSC was registered in October 2012 in accordance with the agreement between the governments of Kyrgyzstan and Russia on the construction and operation of the Upper Naryn cascade of hydropower plants. The joint venture was established to implement the project on construction and operation of Akbulun, Naryn HPP-1, Naryn HPP-2 and Naryn HPP-3. Due to the denunciation of the agreement by the Kyrgyz side and the termination of its validity from August 9, 2016, design, survey, construction and installation works have been suspended.
RusHydro Company demands to take its share in the joint venture to the ownership of Electric Stations OJSC. The Kyrgyz side must pay RusHydro its costs. On October 31, the company filed a claim against Kyrgyzstan with international arbitration, objections to which can be submitted until April 15, 2019.
