Alexey Gorlatov Head and Russian State Program

electric power sector: The restrictions resulting from or in connection with the sanctions also have an effect on supply activity, according to The Moscow Times. A positive factor in this context is the Russian state program "Energy efficiency and development of the power industry" , which includes a sub-program entitled "Development and modernization of the electric power sector." Federal budget allocations for this sub-program exceed 14 billion rubles. Alexey Gorlatov Head of Commercial Practice / Projects Goltsblat BLP* The crisis and sanctions are naturally impacting the market of power equipment supply: Foreign suppliers face reduced demand for their output and services from Russian power-sector companies, because of inter alia the substantial exchange rate drop and relative instability. At the same time, it is obvious that many energy infrastructure facilities are obsolete and require modernization. As a result, many customers have effectively taken a wait-and-see position, demanding certain supply conditions and preferences, whereas suppliers are losing out due to the fall in demand and impossibility of implementing projects on the same scale as before. The recently observed excess of generated power in Russia has a negative effect on the sector development , and this slows down, to some extent, both construction and the start-up of new facilities and modernization of the existing equipment. (news.financializer.com). As reported in the news.