Gazprom hires Deloitte to conduct Suek Valuation

Date: 02-08-2007
Source: Platts Commodity News

Russia's Gazprom has hired Deloitte to put a value on coal firm Suek before the two companies can finalize a planned joint venture, Russian daily Kommersant reported Wednesday. Deloitte is to complete the Suek valuation by October, Kommersant said, without naming its source.

The joint venture between Gazprom and Suek, announced in February, was to have been completed in the first half of the year. Gazprom declined to comment. Deloitte was not available to comment. The audit is linked to a dispute over the value of assets being put into the joint venture by each of the companies, Kommersant said.

Under the February agreement, Suek was to contribute all coal and power assets. Gazprom was to contribute its power businesses. Moscow utility Mosenergo, controlled by Gazprom, is not to be included in the joint venture, according to Kommersant. The reported dispute over asset values comes as both sides continue to accumulate power assets.

Last Friday, the board of Russian power monopoly UES approved moves by both Gazprom and Suek to increase their stakes in a number of power businesses to be sold off in coming months under a sweeping reform of the country's power sector.