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Results of the Board of Directors meeting on October 21, 2019

October 23, 2019. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting on October 21, 2019.


The Board of directors approved the supplemental agreement to the forward contract, initially signed by RusHydro and VTB Bank in March 2017.

Additional agreement provides for lowering of the forward rate by 0.5% p.a. and extension of the agreement for three years through 2025. The agreement of intent to improve the terms of the forward agreement was initially signed with VTB Bank at the Fifth Eastern Economic Forum. The agreement also provides for cooperation with VTB Bank in the form of consulting to improve RusHydro’s share value.

RusHydro initially entered into the forward contract in order to refinance RAO ES East subgroup’s debt. The transaction helped reduce RusHydro Group’s consolidated debt, improve financial stability of the company’s far-eastern subsidiaries and paved the way for improvement of the Group’s dividend policy.


The Board of Directors took into consideration the interim report on execution of set of activities regarding Zagorskaya PSHPP-2.

The project on levelling of the Zagorskaya PSHPP-2 building following its subsiding has been developed by Hydroproject Institute, part of RusHydro Group. The project provides for pumping of special solidifying substances beneath the basement. Considering complexity and unique nature of the project, the Institute conducted thorough research, aimed at testing of the proposed methodology and its applicability for the task. The works included testing on a pilot site, emulating part of the basement plate under pressure from the weight of the building.


In October of 2019, preparation works to level the Zagroskaya PSHPP-2 building began in the Moscow Region. Upon their completion in the second quarter of 2020, drilling works will begin, tube manchette will be installed after which compensation grouting will take place to level the building’s foundation. The project is scheduled for completion in 2022. RusHydro will make further decisions on Zagorskaya PSHPP-2 after levelling of the building will be completed.

Construction of the 840 MW Zagorskaya PSPP-2 in Moscow region is a brownfield project on the site of operating Zagorskaya PSPP. In September 2013, subsiding of the building of the plant under construction took place. Currently the building has been stabilized, survey demonstrated that no damage impeding levelling of the building and further completion of construction has occurred.


The Board of Directors reviewed and approved the reports on Board of Directors committees’ activity for the period of 2018-2019. In the period, 67 committee sessions took place, including 16 in joint presence, where 180 questions were reviewed.  

The information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of RusHydro. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially from these statements. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to RusHydro and its operations.
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