VTB Bank has given two loans to Russian hydropower companies in the east of the country.

The finance has been disbursed to two subsidiaries of RAO Energy System of East, a holding company managing the assets of RusHydro in the far east of Russia.

Far Eastern Generating Company (DGC) has received a loan of US$232.4mn with a tenor of three years, while Sakhalienergo has received US$23mn, again with a three-year tenor. RusHydro guaranteed both loans, which will be used for operational purposes.

DGC is the largest power generator in Russia’s far east, running 15 power plants and seven boiler plants across five regions. Sakhalienergo is the largest provider of electricity in the Sakhalin region.

VTB’s deputy president and chairman says: ”Financing RusHydro is among VTB’s priorities in the energy sector. We have enjoyed long-standing and successful co-operation with the company and hope to further expand our mutually beneficial business negotiations».