From debt crisis to power cuts in Arkhangelsk

The TGC-2 is under increasing pressure to handle its mounting debts

The mounting debts of the main regional power generating company TGC-2 is resulting in electricity supply cuts in local grids.


A Gazprom-subsidiary from October 1 introduced cuts in gas supplies to Arkhangelsk following the major unpaid debts of main regional power generator TGC-2. After negotiations, the gas supplies were fully resumed on October 12, reports. However, the underlying economic difficulties of the regional power company remain unchanged.

According to newspaper Kommersant, the debts of the TGC-2 now amount to more than 16 billion rubles (€360 million). A debt management plan is now demanded by the main creditors, among them Sberbank.

The TGC-1 is one of the biggest power generators in Northwest Russia. It operates electricity and thermal power generating units in six federal subjects, among them Arkhangelsk Oblast. According to figures from Russian statistical authorities, the Arkhangelsk branch of the company in 2012 produced more than 3700 GWh.