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          Russian infrastructure in need of investment

          An accident, in May, at the Chagino power station, near Moscow, drew attention to the dilapidated state of much of Russia's electricity-generating infrastructure and to the chaos that even temporary breakdowns can cause. A sweeping reorganisation of the highly regulated sector, intended to stimulate badly needed investment, is under way, writes Isabel Gorst

          THE FIRE AT the 40-year old Chagino sub station, south of Moscow, caused a prolonged power outage that stranded passengers in the underground and snarled the capital in a traffic jam during an unseasonable heat wave on 24 May.

          There were immediate calls for the resignation of Anatoly Chubais, president of the state-controlled electricity monopoly, United Energy Systems (UES). President Vladimir Putin rebuked Chubais for negligence, but only a lower ranking official – Arkady Evstafyev, the head of Mosenergo, Moscow's power company – lost his job.

          Rumours spread about the causes of the disaster. A separatist Chechen warlord claimed responsibility. Some speculated that the Chagino fire could have been, like an assassination attempt on Chubais earlier this year, the work of conservatives seeking to derail electricity-industry reform. Others said that the partially implemented reforms were themselves causing havoc in the ...Click here to continue reading Russian infrastructure in need of investment




           

           

           




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