According to Bloomberg, CEZ is in negotiating stage with Moscow to build power plant of 600 MW capacity. It is planned that the power plant will have three steam gas blocks, each of 200 MW capacity. The outcome of the negotiation should be known in the time horizon of six months.
We see the news as neutral as the negotiation is in early stage and it is difficult to estimate whether the project will be executed. We see it positive that CEZ tries to get in to the Russian market as there are opportunities to expand operation. We assume the investment cost of the project to be around EUR 360m.