MOSCOW Oct 15 Russia's Energy Minister said the
state will create an "umbrella" company to manage power grid
firm MRSK and Federal Grid Co (FSK)
, in which it holds majority stakes, but ruled out a
merger of the two companies.
Alexander Novak said a merger was a "false expectation" for
the two companies, which were spun off from state-controlled
power monopoly RAO-UES several years ago.
"We are talking about the creation of a managing company,
which will manage both FSK and MRSK," Novak said after a meeting
at President Vladimir Putin's residence of Novo-Ogaryovo.
In May, the head of Russia's top crude producer Rosneft and
the then acting Deputy Prime Minister Igor Sechin had proposed
to merge the companies, an idea that some analysts slammed at
the time as short-sighted.
The two companies were created in 2007-08 when RAO UES was
broken up into three main divisions: wholesale and regional
generators, distribution grids and the Federal Grid or FSK.
The financial crisis of 2008 held back further
privatisations and the state still controls 70 percent of the