Vekselberg’s IES Halts Talks on Power-Assets Sale to Rusal

Billionaire Viktor Vekselberg’s IES Holding ended talks on selling Russian power generating assets to aluminum producer United Co. Rusal as its terms weren’t met.

The government last year supported Rusal’s purchase of IES’s Bogoslovskaya power plant and Novobogoslovskaya project to supply electricity to one of the aluminum company’s smelters in the Urals region, IES said today in an e-mailed statement.

Rusal is “perplexed” by the statement, Arseniy Palagin, a spokesman for the company controlled by Oleg Deripaska, said by e-mail. The sale decision “was made with the participation of the prime minister and can’t be overturned unilaterally.”

Vekselberg, a Rusal shareholder, quit as chairman of the company in March over a dispute with Deripaska about strategy.

To contact the reporter on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net

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