Moscow. 20 October 2004. RAO "UES of Russia", OAO "Surgutneftegas", and the Leningrad Region Government have entered into a tripartite Agreement on strategic cooperation for a term of 10 years.

Under the Agreement, RAO "UES of Russia" will carry out a technical modernization of the power distribution installations and chemical treatment plant of its subsidiary, OAO "Kirishskaya TPP". The modernization is necessary to ensure reliable, high-quality power supply to customers in the city of Kirishi, Leningrad Region, in the long term, including power supply to OOO "Kirishinefteorgsintez Production Association" ("KINEF"), a subsidiary of OAO "Surgutneftegas".

On the basis of KINEF, OAO "Surgutneftegas" will build a deep petroleum refining unit, with the hydrocracking facilities to be commissioned in 2007, and the catalytic cracking facilities to be put into operation in 2010.

In its turn, the Government of Leningrad Region will render assistance in implementing the plans of RAO "UES of Russia" and OAO "Surgutneftegas".

The Agreement is aimed at establishing long-term and mutually beneficial relations among the parties and implementing the strategic development plans of OOO "KINEF" and OAO "Kirishskaya TPP", which will accelerate the development of the energy industry in Kirishi, its industrial and social infrastructure, facilitate the creation of new energy-intensive enterprises, increase the investment attractiveness and create new jobs in the city of Kirishi and the surrounding area.

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Information note: The Kirishskaya TPP is the largest thermal power plant of the Integrated Energy System in the North-West of Russia. The plant's main generating facilities were put into operation between 1965 and 1983. Since then until 2002, the Kirishskaya TPP was a business unit of OAO "Lenenergo". Today, the power plant has a federal status and is a wholly-owned subsidiary of RAO "UES of Russia".

One of the key strategic advantages of the Kirishskaya TPP is that it co-generates heat and electricity. Apart from generation, the power plant produces and sells auxiliary products, such as oxygen, chemically treated and industrial water.

OAO "KINEF" is the only oil refinery in the North-West of Russia. After it was put into operation in 1966, the refinery became the principal supplier of petroleum products to St.-Petersburg, Leningrad Region, Novgorod Region, Pskov Region, and other consumers in Russia.