Russian wholesale generation company OGK-2 last week priced its shares below the middle of the price range, raising concerns that investors are no longer willing to pay a premium for Russian power generators.

OGK-2 will raise only $US 1 BLN instead of the planned $ US 1,7 BLN, selling its shares at 16 cents each. Experts say RAO UES couldn’t sell OGK-2 at a higher price because several months ago it promised Gazprom control of the company.

Head of RAO UES, Anatoly Chubai

However, the Head of RAO UES, Anatoly Chubais, said that he is happy with OGK-2’s pricing.

“I am deeply satisfied with the price, because it is higher than the market level at the moment of huge market turbulence all over the world, including Great Britain. I believe that it’s a success. We’ve made an up on honest stock exchange. We are not in an easy situation with financial markets, as well as the U.S. And I am satisfied with the fact that the final price – 16 cents  – is the higher than the market price,” Mr Chubais said.