InterRAO begins restricting electricity supplies to China amid ongoing price negotiations

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2nd October 2023 – (Moscow) InterRAO, the Russian state energy holding, has initiated the restriction of electricity supplies to China while negotiations regarding price increases are underway. The move comes after InterRAO announced last week its intention to raise electricity prices by 7% for customers in certain countries due to the implementation of new export duties on 1st October. The company also stated that it would limit or cut off supplies if customers rejected the price adjustments. The affected countries include China, Mongolia, Azerbaijan, and the breakaway Georgian region of South Ossetia, as disclosed by InterRAO.

China has become the largest market for electricity exports from Russia outside the Eurasian Economic Union, which consists of Russia and several other former Soviet states. An InterRAO representative informed Reuters that negotiations with China are ongoing and partial restrictions on electricity supplies will commence from today. However, the representative also stated that Mongolia had agreed to the price increases following negotiations.

Last month, Russia introduced export duties linked to the exchange rate of the Russian ruble for a wide range of goods, excluding oil and gas. The duties will range from 4% to 7% if the ruble weakens beyond 80 per dollar. Presently, the exchange rate stands at 98.36 to the dollar.