Privatization Boom in Russia Energy Sector

Skadden has worked on several recent deals in the Russian energy sector, including advising the banks/underwriters on the privatization of five of the six national, and three regional, wholesale power generation companies. The firm represented UBS Investment Bank and Troika Dialog in the $5.8 billion placement of shares by Joint Stock Company OGK-4, a wholesale producer of electric and thermal power in Russia, to E.ON AG of Germany, a supplier of electricity, water and natural gas. This transaction is the largest strategic placement by a Russian power company to date. Skadden also represented Deutsche Bank, Troika Dialog and UBS Investment Bank in the $1 billion initial public offering of Joint Stock Company OGK-2, which is the largest IPO by a Russian power company to date.