TGK-14 may halt construction of Ulan-Ude CHP-2

CHITA. June 30 (Interfax) - The board of directors of PJSC TGK-14 has instructed the company's management to suspend the construction of power units at Ulan-Ude CHP-2, which is being carried out under the Competitive Capacity Selection for New Generating Facilities (KOM NGO) program, due to a lack of financing, the generating company said.

Funds will be allocated on a priority basis to the company's current operations, while financing for the competitive capacity program's projects will be minimized to the greatest extent possible.

"[It was decided] to submit the issue of halting the implementation of the KOM NGO projects and to instruct management to analyze the consequences for the company of a decision to terminate the KOM NGO projects at Ulan-Ude CHP-2 for the board of directors' consideration by July 15, 2026," the company said.

The board of directors also reviewed information on the financing and status of the Chita CHP-1 reconstruction project, which is being carried out under the Competitive Capacity Selection for Modernization program. No decision was made to suspend that project.

As reported, as early as September 2025, the board of directors planned to consider alternative options for implementing major investment projects amid the arrest of the company's co-owners. Board members intended to identify "additional sources of financing and opportunities to secure them under the existing corporate restrictions."

The company had planned a large-scale investment program, intending to invest 64 billion rubles (at 2024 prices) in the construction, modernization, and reconstruction of various facilities through 2040. The largest expenditure under the investment program was earmarked for the construction of power units no. 1 and no. 2 at Ulan-Ude CHP-2, with a combined capacity of 200 MW, at a cost of 31.8 billion rubles. The project envisages the construction of two power units to supply electricity to the city of Ulan-Ude and the Republic of Buryatia as a whole under the KOM NGO program.

The company planned to spend 50.7 billion rubles on creating new generating capacity at Ulan-Ude CHP-2 and modernizing Chita CHP-1. In 2024, TGK-14 conducted a secondary public offering (SPO) on the Moscow Exchange, including to raise funds for financing these projects.

According to TGK-14, as of the end of 2025, 79.32% of the company's shares were owned by JSC Far East Management Company (FEMC). According to TGK-14, the co-owners of FEMC are the former head of the corporate finance department of OJSC Russian Railways (RZD) and the ex-general director of Sinara-Skoda LLC, Konstantin Lyulchev (78%) and Viktor Myasnik (22%). The latter was the general director of TGK-14 in 2015-2017, who was then appointed head of the Department for Major Repairs and Reconstruction of Railway Electrification and Power Supply Facilities, a branch of RZD.

In addition, Lyulchev directly owns nearly 5% of TGK-14, according to the company's list of affiliated individuals. The remaining shares are owned by various individuals and legal entities, including the free float.

Currently, Lyulchev and Myasnik are under arrest. They are accused under article 159.4 of the Russian Criminal Code (fraud committed on an especially large scale).

On July 2, the Arbitration Court of Trans-Baikal Territory will continue hearing the regional prosecutor's lawsuit seeking to invalidate the share purchase agreement under which TGK-14 shares were sold to structures controlled by Lyulchev and Myasnik. The plaintiff is also seeking to transfer the shares owned by them to the Russian state. The lawsuit was filed in the interests of the Russian state and an unspecified group of individuals against FEMC, Energopromsbyt LLC and PJSC TGK-14. RZD as well as Myasnik and Lyulchev have been named as third parties.

At the prosecutor's request, the court also seized 540,540,540,540 ordinary shares of TGK-14 owned by FEMC and prohibited FEMC from disposing of the shares, pledging them as collateral or otherwise encumbering them with any rights of third parties.