Gazprom to join electric power market

Gazprom is going to join actively the electric power market, First Deputy Chairman of the Gazprom Board Alexander Ryazanov said on Monday.

"Electric power is entering free market faster. It is advantageous for us in terms of business," he noted.

Gazprom will sell gas to affiliated power companies for a regulated low price, and they will in turn use electric power for a market price," he explained.

Gazprom's deputy chairman confirmed that the gas concern would participate in energy projects of its shareholder - Germany-based company Ruhrgas.

Gazprombank where Gazprom is the majority shareholder, owns shares in Russia's Unified Energy Systems and Mosenergo, totalling over 30 billion rubles ($1 equals about 29 rubles).

In particular, Gazprombank purchased 5.3% of shares in Russia's Unified Energy Systems in January 2004 for 19.8 billion rubles, and 15.76% of Mosenergo shares for 10.9 billion rubles in May 2003.