KIEV, September 2 /PRNewswire/ -- Lugansk Energy Interconnection Company LLC, one of the five largest electrical energy suppliers in Ukraine, a part of the Energy Standard Group, reports that it has received permission from the Ukrainian Anti-Monopoly Committee to purchase more than 50% of Teploelectrotsentral-3 CJSC (TEC-3), Kharkov, Ukraine. TEC-3, in an oblast (province) adjacent to Lugansk, is one of Ukraine's largest producers of heating and electrical energy, with annual production capacity of 100 Megawatts. Kharkov, in northeastern Ukraine, is the nation's second largest city, with a population of 1.5 million.

Lugansk Energy Interconnection Company's investment program for 2008 includes UAH252 million (approximately EUR37.5 million at current rates) for reconstruction and modernization, including of newly purchased assets. This is a record amount for a private company investment in Ukraine's electrical energy transmission system. Company investments for 2007 exceeded UAH160 million, 80% more than for 2006.

Lugansk Energy Interconnection Company also raised a US$130 million loan for business development from VTB Bank in July 2008. The company received the first tranche in the amount of US$40 million in August.

"The company's achievements and investment programs are indicative of the company's move to a new development stage," Vitaly Tsado, Lugansk Energy Interconnection Company's Deputy General Director, said. "We are focusing our efforts on raising market value and on technological development of the company."

In line with the company's plans to acquire more generating companies, it has also received permission from the Ukrainian Anti-Monopoly Committee to purchase more than 50% of SGS Plus, which leases and manages Sevastopol heat and electric power plant, in Crimea on the Black Sea.

About Lugansk Energy Interconnection Company LLC

Lugansk Energy Interconnection Company LLC is the only company supplying electrical power in Ukraine's Lugansk region, a large industrial area with a large number of coal, metallurgical, chemical and heavy engineering companies. The company includes six branches, each of which manages several regional electric energy networks. Lugansk Energy Interconnection Company controls and uses 83% of the power distribution networks in Lugansk region. Its license for the transmission and supply of electricity is based on state-set tariffs.

Lugansk Energy Interconnection Company is a part of the Energy Standard Group, the largest Ukrainian power engineering holding company, founder and owner of which is Konstantin Grigorishin.

Contact: Andrei Bobrovitsky, Tel +38(0)50-4645549, a.bobrovitskiy@esg.com.ua .

Contact: Andrei Bobrovitsky, Tel +38(0)50-4645549, a.bobrovitskiy@esg.com.ua .