Moscow, 13 August. The Administration of Kursk is reluctant to pay off the debts owed by municipal entities to "Kurskenergo". Moreover, the municipal authorities are intending to break the law and force the local energo to supply electricity for free. The arrears of the municipal "Gorelectroset" and "Gorteploset" have exceeded 300 mln rubles. Whereas "Gorelectroset" and "Gorteploset" got paid bythe population almost in full (90%)the payments of these two intermediaries to ‘Kurskenergo’ make less than 77%. As a result, "Kurskenergo" is unable to pay in full for electricity supplied by the Federal (All-Russia) Wholesale Electricity Market (FOREM), to procure fuel and repair its equipment. This unscrupulous attitude of the municipal entities towards their liabilities makes it impossible for the "Kursenergo" to use its energy sources, generating heat to the entire city, appropriately. For this reason, a boiler-house located in the Northwestern district has been closed down. Now TPP-4 is on a waiting list. Due to the present situation the local energo authorities have reduced the volume of electricity supplied to the "Gorelectroset" and "Gorteploset", which is in full compliance with the existing legislation. However, the authorities of Kursk instead of telling the municipal entities to rectify the situation put much pressure on "Kurskenergo". Sergey Maltzev, the mayor of the city, has issued an order, according to which "Gorelectroset" and the Department of Water Supplies and Sewerage Maintenance must disconnect all of the "Kurskenergo’s " buildings from municipal water and waste water pipe lines, and electrical supply lines. By making suchlike irresponsible decisions the Administration of Kursk can worsen the living conditions of the city residents, who might be deprived of heat and hot water. RAO "UES of Russia" has emphasized that the subsidiaries’ and dependent companies’ activities are aimed to meet the requirements of the Government of the Russian Federation as to avoid delays in payments for he power supplied.

Over the period of the firstsix months of 2003 RAO "UES of Russia" and its subsidiary ZAO "Inter RAO UES" have increased electricity exports by 33.6%. Moscow, August 12.

Over the period of the first six months of 2003 RAO "UES of Russia" and its subsidiary ZAO "Inter RAO UES" have increased electricity exports by 33.6%, compared to the same period of 2002. The volume of electricity exported by RAO "UES of Russia" and ZAO "Inter RAO UES" totaled 9 billion 591,46 million kWh. Export revenues have grown by 86.7%, compared to the same period of 2002, and they amounted to 7 billion 12 million rubles. Exports to foreign countries have made 6 billion 111,82 million kWh, increasing by 42,5%. Export sales made 5 billion 76 million rubles, increasing by 2.3 times. Finland remains to be the major exporter of Russia’s electricity among foreign countries. Thanks to the construction of the third 400 kV power transmission line "Viborg (Russia) – Kumi (Finland) was completed, electricity exports have grown by 47,4%. This made it possible to increase the cross-border transfer capacity from 1000 to 1400 MV. Thanks to a newly signed contract with Central Mongolia, the volume of electricity exported to Mongolia has also increased. Exports to the CIS countries have grown up by 20.5% and made 3 billion 479,64 kWh. Export revenues have increased by 24.9%. The Republic of Belarus is still a leading importer of Russia’s electricity in the CIS (overall exports to the CIS countries amount to 35%). Lately, electricity sales to Georgia and Moldova have increased significantly. Full payment for the electricity supplied is a necessary conditions for exporting electricity. RAO "UES of Russia" has underlined that in the first six months of 2003 according to the existing exports contracts the republics have fully paid for the power supplied.