Strategy

On May 15th, 2008, the Company’s Board of Directors approved Ten Year Consolidated Program for Federal Grid’s Power Grid Development, including a scheme of 220V (and upwards) UNEG development till 2020.

The Company’s key development goals are:

  • To expand and upgrade the power grid;
  • To ensure that power plants deliver required capacity output and to guarantee required reliability and uninterrupted power supply to consumers;
  • To reduce the rate at which fixed assets wear out and are retired and to introduce centralized management of the power grid;
  • To create grid and production infrastructure;
  • To connect wholesale market participants to the power grid;
  • To upgrade the UNEG to internationally accepted standards;
  • To improve performance by reducing production costs, maintenance costs and losses of the UNEG;
  • To apply an integrated investment and capital raising strategy.

To achieve these goals, we stand by the following strategic priorities:

Reliability

Federal Grid’s fundamental importance to the Russian economy determines our main strategic priority reliability and stability in electricity transmission throughout the entire country. Our upgraded technical policy is aimed at further improving equipment reliability via renovating existing facilities and implementing the newest technologies.

Development and Innovations

The condition of the UNEG has a direct affect on the rate of economic development in Russia. Therefore, we are bringing the electric grid in line with a new technological level by modernizing obsolete facilities and through innovation.

Safety

The life and health of the Company’s personnel, as well as the industrial and environmental safety of our facilities, are key priorities for Federal Grid Company. The Company is constantly upgrading the industrial and consumer safety level, introducing new environmental protection technologies and carefully managing related risks.

Operating Efficiency

Our business' immense size and the fact that the Company is a monopoly in the market give us considerable advantages, including: financial stability, steady growth and the possibility to efficiently manage risks. The Company uses its strengths to upgrade operating efficiency.

Corporate Governance

The Company strives to comply with best international practices in this sphere. Strict conformity with corporate governance standards and investments in human capital development allow our shareholders to contribute to the Company's overall success.

Shareholder Value

The strategy aimed at maximizing the Company's shareholder value is based on our business's immense size, which will expand due to the ambitious investment program and stable electricity demand. The RAB-based regulation, optimizing the capital structure and approving a new dividend policy will also enable to increase the Company’s shareholder value.