Zarubezhneft subsidiary enters solar energy projects in Armenia

YEREVAN, April 12. /ARKA/. In 2023 Russian Zarubezhneft's subsidiary ZN Energy LLC acquired 50% stakes in project companies in Armenia engaged in solar power generation, Interfax news agency reported citing ZN Energy's report.

In April 2023, the company established Solar Industry LLC in Armenia, in which it disposes of 99.9% of shares.

Transactions to buy stakes in Armenian companies led to a decrease in ZN Energy's already negative net assets by 4.02 million rubles, to minus 20.47 million rubles.

"The impact on the amount of net assets and on the growth of the "deferred tax assets" was influenced, among other things, by a number of agreements concluded in 2023 in the interests of the company for the purpose of acquiring stakes in the amount of 50% in project companies of solar power plants located in the territory of the Republic of Armenia. ZN Energy plans to receive economic benefits from these projects in the form of dividends from 2030 to 2052, which will be used to repay the loans received by the company for the development of the acquired projects," the report says.

It also notes that the company is conducting technical audit and economic evaluation of new renewable energy projects both in Russia and abroad. Thus, in Russia, solar energy projects with a capacity of about 50 MW are under consideration, in Central Asia - with a capacity of about 800 MW. In Southeast Asia, the company is analyzing not only solar but also wind power projects with a total capacity of about 200 MW.

"Participation in these projects will allow the company to receive cash flows already from 2026. These flows will cover the company's current costs and will also be used for return on investment," the company notes. -0-