InterRAO And RWE: Different Actors, Same Aim

CFW View: News that Russian InterRAO is in talks to buy assets from German utility RWE come just weeks after talks broke down between the German indebted utility and Russian giant Gazprom . The move reinforces our view that consolidation in Europe is seen as a priority by Moskow. With deals in China and India still failing to materialise, and with negotiations with Japan and South Korea still ongoing, Europe represents the only reliable large-scale market for Russian gas at the moment. RWE has confirmed to be in talks with Russian state-run power generator and exporter InterRAO for the sale of assets. The news come only weeks after talks broke down between RWE and Gazprom over the possibility of joint power production ventures, and are much in line with RWE's divestment strategy and restructuring plans.

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