The conference initiated by AO MOSENERGO was at www.finam.ru—the website of Finance Analitic. Replying to questions, Yevstafyev said that the bulk of investments in 2001 was used to develop generation capacities, modernize and technically upgrade the grid facilities. Currently, AO MOSENERGO drafts detailed schemes for redeeming debts amounting to $179 million. To achieve this goal, the company may use three main sourcescash balance as of the beginning of the year (around $82 million), cashflows received as a result operations, and borrowed funds.

According to Yevstafyev, the most likely solution is one that will comprise to some extent all three sources. The general director pointed out that in 2002, the company paid for eurobonds $41 million. The fact that the net cash flow of AO MOSENERGO amounted in 2001 to $115 million means that the company is capable of paying outstanding debts without relying on additional funds. In addition, in accordance with AO MOSENERGO’s business plan total costs are expected to decrease by 335 million rubles (or 1% of energy generation costs).