RIA Novosti reported that Russia largest hydropower producer RusHydro plans to buy hydropower plants in Armenia, currently owned by International Energy Corporation a subsidiary of Russian state-controlled power trader Inter RAO UES and invest about EUR 40 million in their reconstruction.

A source familiar with the companies' plans told RIA Novosti that no final agreements have yet been signed.

Mr Yevgeny Dod RusHydro Chairman said "We have agreed with our colleagues from Inter RAO that they specialize more in heat power plants. I hope we will complete the deal on the asset purchase in the nearest future."

He said that "The program of comprehensive reconstruction was agreed with the government of Armenia three years ago. The sum of investment is about 40 million euros. It is our major specialization and that is why this asset is interesting for us; moreover we know Armenia and have worked there for a long time."

A RusHydro spokesman said the company planned to purchase the cascade of hydropower plants on the Razdan River in Armenia through the acquisition of 100% in International Energy Corporation, which fits the logic of mutually beneficial cooperation between the two companies.

The spokesman said "The parties have currently achieved an agreement in principle but the date of signing has not yet been confirmed, the companies need more time to work on the issue. The price parameters of the deal have been agreed and no swap deals are envisaged."

(Sourced from RIA Novosti)