E.ON enters Russian power market

E.ON and Russian energy company STS have founded a joint venture called E.ON-STS Energia in Tyumen in western Siberia, with each of the partners owning 50 per cent.
STS has a number of shares in power generation and distribution. STS supplies electricity and gas to about 1.1 million customers in western
STS intends to transfer some of its own generating capacity into the new joint venture. In order to expand its market presence in the region, E.ON-STS Energia will take part in the privatisation of power producer TGK-10. Plans call for STS to transfer some of its generating capacity to TGK-10 before the joint venture acquires a majority in the company. TGK-10 intends to build about 1,000MW of new generating capacity over the medium term.
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