The EU has included Russian energy company Inter RAO in its 21st sanctions package, approved on July 23. The company is the indirect owner of Georgian energy firms Telasi and Telmico, as well as the Khrami I and Khrami II hydroelectric power plants.
The EU Council decision notes that Inter RAO is under the control of the Russian government, is one of Russia’s largest energy companies, and plays a significant role in its economy. It also highlights that the Russian state receives a portion of the company’s revenue through taxes and dividends.
“Given its high revenue, significance to Russia’s energy sector, and state control, PJSC Inter RAO plays a major role in one of the key sectors of the Russian economy, while the Government of the Russian Federation receives part of the company’s income in the form of taxes and dividends paid by its owners.
In this regard, according to the EU’s reasoning, PJSC Inter RAO provides financial support to the Government of the Russian Federation, which is responsible for the annexation of Crimea and the destabilization of the situation in Ukraine,” the EU document states.
It should be noted that Inter RAO indirectly holds 100% of the Dutch company Silk Road Holdings B.V., which owns a 75.108% stake in Telasi and a 75.471% stake in Telmico.
Through another Dutch entity, Gardabani Holdings B.V., Inter RAO also indirectly controls 100% of the shares in the Khrami I and Khrami II hydroelectric plants.
However, it is worth emphasizing that Telasi, Telmico, and the Khrami I and Khrami II plants themselves are not included in the EU sanctions list.
Media reports note that existing EU rules can extend to companies directly or indirectly controlled by a sanctioned entity, which could affect individual financial operations, corporate governance, and asset transactions.
It is pointed out that Silk Road Holdings previously announced a tender offer to buy out the remaining 24.892% stake in Telasi, with the application process closing on July 31. Due to the sanctions, the deal may require additional approvals from Dutch authorities, potentially affecting its timeline.