Gazprom-SUEK JV to help balance gas, coal consumption.

MOSCOW, March 13 (Itar-Tass) -- Russia’s first deputy prime minister, chairman of the Gazprom board of directors, Dmitry Medvedev, held a conference on Tuesday to review progress in preparations for a transaction between the gas monopoly and Russia’s biggest coal and energy producing company SUEK, sources in the government told Prime-Tass.

Medvedev said “the creation of a joint company would help enhance the economic effectiveness and balance the use of coal and gas in electric power production.”

Taking part in the conference were Gazprom CEO Alexei Miller, administration board member Kirill Seleznyov, SUEK General Director Vladimir Rashevsky and a member of the SUEK board of directors, Andrei Melnichenko.

The participants discussed the action taken so far to implement the protocol to create a joint company on the basis of Gazprom and SUEK’s electric power production and coal assets, concluded on February 8. Special attention was paid to the joint company’s development guidelines.

Under the protocol of intent Gazprom and SUEK are to establish a joint venture on the basis of their electric power generating and coal mining assets. The transaction is expected to be completed by the middle of this year. The stakes in the co-owned company will be distributed as follows – Gazprom will have 50 percent plus one share, and SUEK, 50 percent less one share.

The yet-to-be established company will be positioned as one of the leaders of Russia’s electric power industry and a major player in the world electric power and coalmining industry.