11.08.2017
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Results of the Board of Directors on August 10, 2017

August 11, 2017. Moscow, Russia. PJSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on August 10, 2017.

Key highlights:

  • Yury Trutnev re-elected as Chairman of the Board of Directors;
  • The Board of Directors elected all of the committees and chairmen;
  • The Board of Directors resolved to cancel Leningradskaya pumped storage investment project;
  • The Board of Directors approved gratuitous targeted contributions to budgets of Far East Federal District regions as part of the mechanism to lower end-user tariffs in the region;
  • The Board of Directors approved additional agreement to General contractor agreement for construction of Yakutskaya TPP-2.


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The Board of Directors re-elected Deputy Chairman of the Government of the Russian Federation – Plenipotentiary Representative of the President in the Far Eastern Federal District Yury Trutnev as its Chairman.


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The Board of Directors elected Sergei Ivanov as Deputy Chairman to the Board of Directors.


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The Board of Directors elected following members to the Far East energy development Committee:


1.

Yury Trutnev

Deputy Chairman of the Government of the Russian Federation – Plenipotentiary Representative of the President in the Far Eastern Federal District

2.

Igor Zadvornov

Head of the Office of the Deputy Chairman of the Government of the Russian Federation — Plenipotentiary Representative of the President in the Far Eastern Federal District

3.

Alexei Chekunkov

Director General, JSC Far East Development Fund

4.

Pavel Grachev

President, PJSC Polyus

5.

Vyacheslav Kravchenko

Deputy Minister of Energy of the Russian Federation

6.

Vladimir Tupikin

Deputy Chairman of the Management Board, NP Market Council

7.

Alexey Mol’sky

Deputy Chairman of the Management Board, PJSC FGC UES

8.

Sergei Kachayev

Deputy Minister for the Development of the Russian Far East

9.

Denis Pilienks

Deputy Director for Development, JSC System Operator of the United Power System

10.

Mikhail Kolesnikov

Vice-President, Chairman of Committee on energy industry, the all-Russian non-governmental organization of small and medium business OPORA RUSSIA

11.

Denis Konstantinov

Expert, Department of tariff regulation, infrastructure reforms and energy efficiency, Ministry of Economic Development of Russia

12.

Andrey Kazachenkov

Member of Management Board, First Deputy Chairman of the Management Board, PJSC RusHydro

13.

Sergey Tolstoguzov

Deputy General Director for the Far East – Director of Division ‘Far East’, PJSC RusHydro

The Board of Director re-elected Yury Trutnev as Chairman of the Committee.


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The Board of Directors elected following members to the Strategy Committee:


1.

Igor Zadvornov

Head of the Office of the Deputy Chairman of the Government of the Russian Federation — Plenipotentiary Representative of the President in the Far Eastern Federal District

2.

Pavel Grachev

President of PJSC Polyus

3.

Nikolai Rogalev

Rector, National Research University "Moscow Power Engineering Institute"

4.

Sergey Shishin

Senior Vice-President of the VTB Bank (PJSC)

5.

Nikolai Shulginov

Chairman of the Management Board - General Director, PJSC RusHydro

6.

Vyacheslav Pivovarov

General Director, LLC Altera Capital

7.

Andrei Gabov

Acting Deputy Director, Head of Department, Department of tariff regulation, infrastructure reforms and energy efficiency, Ministry of Economic Development of Russia

8.

Eugenia Stolyarova

Head, Department of property relations and large-scale privatization of The Federal Agency for State Property Management (Rosimushchestvo);

9.

Pavel Snikkars

Director, Department of power industry development, Ministry of Energy of Russia

10.

Alexandra Bogasheva

Deputy Director, Department for corporate governance, pricing and oversight, Ministry of Energy of Russia

11.

Boris Livshits

Deputy head, Competitive pricing development department, NP Market Council

12.

Vasily Nikonov

Head of energy department, PJSC Rosneft

13.

George Rizhinashvili

Member of the Management Board, First Deputy Chairman of the Management Board, PJSC RusHydro


The Board of Director elected Igor Zadvornov Chairman of the Committee.


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The Board of Directors elected following members to Audit committee:


1.

Maxim Bystrov

Chairman of the Management Board, NP Market Council

2.

Sergei Ivanov

General Director, LLC RT-Capital

3.

Vyacheslav Pivovarov

General Director, LLC Altera Capital


The Board of Director elected Sergei Ivanov Chairman of the Committee.


***


The Board of Directors elected following members to Nominations and Compensation Committee:


1.

Maxim Bystrov

Chairman of the Management Board, NP Market Council

2.

Sergei Ivanov

General Director, RT-Capital

3.

Vyacheslav Pivovarov

General Director, LLC Altera Capital


The Board of Director elected Vyacheslav Pivovarov Chairman of the Committee.


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The Board of Directors elected following members to the Investments Committee:


1.

Maxim Bystrov

Chairman of the Management Board, NP Market Council

2.

Sergei Ivanov

Member of RusHydro’s BoD, General Director of LLC RT-Capital

3.

Vyacheslav Pivovarov

General Director, Altera Capital

4.

Nikolai Rogalev

Rector, National Research University "Moscow Power Engineering Institute"

5.

Alexei Chekunkov

Director General, JSC Far East Development Fund

6.

Andrei Gabov

Acting Deputy Director, Head of Department, Department of tariff regulation, infrastructure reforms and energy efficiency, Ministry of Economic Development of Russia

7.

Sergei Zhuravlev

Vice-President (GR), PJSC Polyus

8.

Denis Milyutin

Head, Directorate for control of energy resources costs of Energy Department, PJSC Rosneft

9.

Pavel Snikkars

Director for electric energy development, Ministry of Energy of Russia

10.

Andrey Kazachenkov

Member of the Management Board, First Deputy Chairman of the Management Board, PJSC RusHydro

11.

Sergei Kirov

Member of the Management Board, First Deputy Chairman of the Management Board, RusHydro

12.

Victor Khmarin

Deputy General Director, PJSC RusHydro


The Board of Director elected Maxim Bystrov Chairman of the Committee.


***


The Board of Directors elected following members to the Committee on reliability, energy efficiency and innovations:


1.

Nikolai Rogalev

Rector, National Research University "Moscow Power Engineering Institute"

2.

Alexei Chekunkov

Director General, JSC Far East Development Fund

3.

Vyacheslav Kravchenko

Deputy Minister of Energy of the Russian Federation

4.

Elena Belchenko

Acting Director, Natural Monopolies Relations Department, PJSC Polyus

5.

Yuri Vishnevsky

Deputy Director for United Power System regime management, JSC System Operator of the United Power System

6.

Roman Gromov

Head of strategic development, NP Market Council.

7.

Boris Bogush

Member of the Management Board – Chief Engineer, PJSC RusHydro

8.

George Rizhinashvili

Member of Management Board, First Deputy Chairman of the Management Board, PJSC RusHydro

9.

Sergey Tolstoguzov

Deputy General Director for the Far East – Director of Division ‘Far East’, PJSC RusHydro

10.

Kirill Frolov

Deputy General Director for R&D, PJSC RusHydro

11.

Nikolay Karpukhin

Nikolay Karpukhin, Deputy General Director for Construction, PJSC RusHydro

12.

Mikhail Fedorov

President, Peter the Great St. Petersburg Polytechnic University


The Board of Director elected Maxim Bystrov Chairman of the Committee.


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The Board of Directors reviewed status of development of Leningradskaya pumped storage hydropower plant (PSHPP) investment project and adopted the following decisions in regards to the project:

  • To cancel Leningradskaya PSHPP investment project in the absence of market mechanisms providing for sufficient return on investment;
  • To charge Chairman of the Management Board – General Director to organize:
  1. development of Leningradskaya PSHPP liquidation project along with measures of rehabilitation of arable land and forest lots within construction site of the facility;
  2. implementation of works, related to liquidation of Leningradskaya PSHPP;
  3. financing of expenses, related to liquidation of Leningradskaya PSHPP.


***


The Board of Directors approved gratuitous targeted contributions to budgets of Far East Federal District regions (Kamchantka Krai, Magadan Oblast’, Yakutia (Sakha) Republic, Sakhalin Oblast’ and Chukotka Autonomous Region) and approved respective agreements between RusHydro and the regions. The purpose of the contributions is leveling electricity (capacity) tariffs levels in the regions pursuant article 32 of the Federal Law #35-FZ of 26.03.2003 (Law on electric power industry). According to the agreements, these regions will use the contributions to provide subsidies to guaranteeing providers of electricity in the amount, sufficient to compensate losses, incurred by the providers in the retail market due to leveling of the tariffs to average values. The volume of the contributions is set by the Government of the Russian Federation in accordance with point 1.1 of article 32 of the Law on electric power industry.


(Note: RusHydro will use additional revenue from capacity prices’ add-ons approved by the Russian Government in the amount corresponding to the necessary targeted contributions)


***


The Board of Directorsadopted decision on confidential issue, not subject to disclosure.


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The Board of Directors determined position of RusHydro’s representative at EGM of JSC Yakutskaya TPP-2 and approved Additional agreement to General contractor agreement for construction of TPP-2 (1st phase) of 24.02.2014 #01/ZRUH/13-121293 qualified as major transaction. The Agreement is to be signed under the following material conditions:

  • Parties to the Additional agreements are:
    - JSC Yakutskaya TPP-2 acting as the customer;
    - JSC TEK Mosenergo acting as the contractor;
  • The subject of the agreement: in reference to changes of the conditions, approved earlier by the EGM of JSC Yakutskaya TPP-2- increase of the price of the Agreement by RUB 3,126,239,380, including VAT (18%);
  • The limit price of the Agreement (accounting for the Additional agreement is RUB 20,507,753,840 including VAT (18%);
  • Timing of the Additional agreement: the agreement enters force since the date of signing by both parties.
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.