OREANDA-NEWS. The Board of Directors of RAO "UES of Russia" approved the divestment by the Company of its interest in OAO "UES Engineering Center - Gidroproekt, Lengidroproekt, Teploelektroproekt, Firma ORGRES" (OAO "UES Engineering Center").

As the first phase, OAO "UES Engineering Center" will be reorganized by spinning-off a wholly-owned subsidiary of RAO "UES of Russia". The spin-off company, "UES EC Realty, will receive, under the spin-off balance sheet, the immovable properties owned by OAO "UES Engineering Center". OAO "UES Engineering Center" will then enter into a building lease agreement with the spin-off company for a term of 3 to 5 years.

During the next phase, RAO "UES of Russia" will sell at least a controlling stake in OAO "UES Engineering Center" through a public auction at a price not lower than the fair market value of the shares.

During the third phase, RAO "UES of Russia" is to sell the shares in OAO "UES Engineering Center" to the company's management in such a quantity as to ensure that the managers will continue to engage in the core business. The sale price should be in line with the price set during the auction to sell the shares in OAO "UES Engineering Center".