The Energy Regulation and Markets Review - Stikeman Elliott

Russia
All organisations in the energy sphere that engage in construction require relevant
licences.
Depending on the circumstances and the specific activity, licences may also be
needed for:
a operation of explosion-hazardous production facilities;
b operation of chemically hazardous production facilities; and
c collection, use, decontamination and placement of hazard class I–IV waste.
iii Ownership and market access restrictions
In the electric power sector, at least 75 per cent plus one share of the organisation for
management of the Unified Russian Electricity Grid (Open Joint-Stock Company
Federal Grid Company of the Unified Energy Grid) must belong to Russia. The owner
of an electricity grid belonging to the given network, if it intends to sell it, is required
to notify the given organisation to this effect, indicating the price and other terms of
sale. If the organisation refuses to make the purchase or does not advise of its readiness
to purchase the facility within six months, the owner is entitled to sell it at no lower
than the announced price. If this procedure is violated, the organisation has the right,
within six months of receiving the information about the sale, to make a judicial claim
for the rights and obligations of the facility’s purchaser to be transferred to it. The given
organisation and its affiliates are prohibited from selling and purchasing electric power
and capacity. 32
The operational dispatch management organisation (Open Joint-Stock Company
Unified Energy Grid Systems Operator) must be 100 per cent owned by the state. The
systems operator and its affiliates are prohibited from producing, selling and purchasing
electric power. 33
The body for state management of nuclear energy use (State Corporation for
Nuclear Power ‘Rosatom’) is a non-commercial organisation with a 100 per cent property
contribution by Russia. 34 The main nuclear power joint-stock company (Open Joint-
Stock Company Nuclear Energy-industrial Complex) belongs 100 per cent to Russia
or the aforementioned state management body. This company and those it controls
conclude transactions with their shares in nuclear power complex organisations with the
permission of the President of Russia, the Russian government and, in a number of cases,
with the consent of the above-mentioned state management body. Transactions lacking
such consent are null and void. 35 Nuclear materials, nuclear installations, radiation
32 Article 8, Clauses 2–4 of the Federal Law on Electric Power.
33 Article 12, Clauses 3 and 4 of the Federal Law on Electric Power.
34 Article 3, Clause 1 of the Federal Law on the State Corporation for Nuclear Power ‘Rosatom’.
35 Article 4, Clauses 18 and19 of Federal Law dated 5 February 2007 No. 13-FZ on the specifics
of management and disposal of property and shares of organisations operating in the sphere
of nuclear power use; Section III, Clause 16 of the Articles of Association of Open Joint-Stock
Company Nuclear Energy-industrial Complex.
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