Gazprom sells stake in electric utility

MOSCOW, Aug. 27 (UPI) -- Russian energy giant Gazprom plans to sell 11 percent of northwest Russian electric utility company TKG-1 to one of its own subsidiaries.

Gazoenergeticheskaya Kompania, the largest power generator in northwest Russia, will assume the 11 percent stake from Gazprom and acquire an additional 18 percent share from the market, BarentsObserver reported Wednesday.

Gazprom directors approved the sale to GEK last week in order to "form a unified system of corporate management."

In early August Gazprom consolidated about 11 percent of its shares in the defunct United Energy System by acquiring 100 percent of the charter capital of GEK.

Though Gazprom currently controls less than 30 percent of TKG-1, the GEK deal will translate to a 46 percent stake in the firm.

The GEK deal allowed Gazprom to transfer its energy holdings from financial investments to core business interests.