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The discussion focused on the company’s key areas of activity, implementation of investment and renovation projects, as well as measures aimed at improving grid reliability.

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President of Russia Vladimir Putin: Mr Ryumin, Rosseti manages almost all of the main power grid assets, engineering and service companies. Last year, the Rosseti group showed stable operational results. Its performance was positive and satisfactory.

How do you assess the current situation and what are the immediate prospects? What needs to be done to support you?

Rosseti CEO Andrei Ryumin: Mr President, first, I would like to report on the performance of the Rosseti group.

Our production figures are as follows: we have exceeded 2.5 million kilometres of power lines that we manage. We also currently operate more than 580,000 substations with a total capacity of approximately 875 gigavolt-amperes. Electricity transmission also increased last year. Now 80 percent of all electricity generated in the Russian Federation is transmitted through our networks.

Regarding the financial results, let me inform you that the company’s revenue for 2023 amounted to 1.38 trillion rubles, nearly 1.4 trillion. This is a 17 percent increase compared to 2022. Our net profit is slightly over 160 billion rubles, amounting to 161 billion rubles. This is a 20 percent increase compared to 2022. And our net profit partially finances our investment programme.

The investment programme itself is worth over 530 billion rubles. Last year we once again set a new record for our investment programme: it is now worth 100 billion rubles more than in 2022. As part of this programme, we have built over 35,000 km of power lines, with approximately 10 gigavolt-amperes of new capacity added last year.

One of the key projects we have implemented is the completion of the first stage of power supply to the Eastern Operating Domain, which I have reported on, at the beginning of this year.

I would also like to mention other large projects, such as the renovation of the Pakhra substation. This substation is a crucial component of the Moscow energy ring. Additionally, we have completed the construction of all electrical grid facilities necessary to supply power to Gazprom’s Kovyktinskoye and Chayandinskoye fields, which are the resource base for the Power of Siberia gas pipeline. We have also connected the Amur Gas Chemical Complex, which belongs to Sibur.

Of course, these are the most important and largest projects. However, I cannot leave out the total volume of work and utility connections carried out. In the past year alone, we fulfilled over 400,000 utility connection contracts.

Mr President, it is crucial to note that we primarily use Russian-produced materials and equipment as part of our investment and renovation programmes, as well as when implementing our projects.

Vladimir Putin: Over 90 percent.

Andrei Ryumin: Yes, over 90 percent. In fact, the figure is closer to 95 percent. Our import substitution rate is currently about 93–94 percent. We collaborate with all the largest Russian equipment producers and also carry out our own R&D. As part of this effort, in March, we opened an Intelligent Laboratory of Digital Networks in St Petersburg. This centre is currently the most cutting-edge network research facility in the Russian Federation and is considered to be one of the most advanced centres in the world.

At the end of last year, electric grid assets in the Novosibirsk Region, Murmansk Region, Krasnoyarsk Territory and the Republic of Crimea were transferred to the authorised capital of the Rosseti group in accordance with your instructions. As a result, our assets increased, and our presence expanded geographically.

The autumn and winter period is a task of utmost importance for us. During the 2023–2024 autumn-winter period, there was an increase of more than 20 percent in natural disasters within our area of operation, which particularly affected the southern regions. In particular, freezing rains in January and February of 2024 caused widespread power outages in the Rostov Region.

However, given such large increase in natural hazards, we have managed to preserve an average accident rate at the level of the previous autumn and winter period. When I say “average,” and we work in 82 regions, of course we calculate the average taking account of all these regions. Yet, the situation varies and, in some regions, it is deplorable and the equipment wear and tear has reached a critical level.

Therefore, in view of your last year’s instruction, the Government of the Russian Federation decided to start financing programmes to enhance reliability at the expense of the federal budget in eight Russian regions. We developed these programmes to improve reliability jointly with the Ministry of Energy. They are designed for three years: the programmes are to greatly improve the situation in those eight regions.

One cannot fail to mention our work in the new constituent entities of the Russian Federation. Last year, by order of the Government, the transmission networks in the Lugansk and Donetsk people's republics, the Zaporozhye and Kherson regions were handed over to us for free use. So, in addition to restoration works that, as you know, we have been carrying out since spring 2022, last year we began full-scale operation of the main transmission system in the new constituent entities of the Russian Federation.

Mr President, summing up the results, I want to say that the priorities are the same in the current year of 2024. We keep on working in the key areas I have mentioned.

Of course, the main thing for us is reliable and high-quality power supply to consumers for people's comfortable life and stable economic growth. We plan to complete major projects this year: this includes almost all the facilities of the second stage of power supply for the Eastern Operating Domain, and, of course, connection of large industrial enterprises, small and medium-sized businesses, housing and social facilities.

To conclude, Mr President, I want to thank you for your attention and support for the integrated power grid.

Vladimir Putin: You have mentioned the work in the regions. It is very important not to miss anything here. You have said about the Moscow Energy Ring.

Andrei Ryumin: Yes.

Vladimir Putin: I talked with Mr Sobyanin; he also pays attention to the region’s economic growth. In this respect we should by no means allow the situation that we had a few years ago, when there was a shortage of relevant electric power facilities and we had to take emergency measures to expand this capacity. I would not like any emergency measures; everything should proceed as planned.

Andrei Ryumin: Absolutely true, Mr President. Mr Sobyanin and I have discussed this issue. A programme is being developed, so we keep this matter under control.

Vladimir Putin: Good.

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