Russian Premier Vladimir Putin threatened Wednesday to slap heavy fines on some of the country's top tycoons for not investing enough in the power sector, while praising Western investors. In one of his classic appearances, Putin, who has a lengthy track record of market-moving attacks on the nation's business elite, said he was particularly upset by four oligarchs – Vladimir Potanin, Leonid Lebedev, Mikhail Prokhorov and Viktor Vekselberg. If they fail to fulfil their investment obligations, taken before the crisis when the state agreed to privatize power assets, they will not only face fines but will also be banned from selling power at market prices. “We had hoped the owners will take a responsible position. Unfortunately, not everyone has taken it, citing the crisis and lack of demand,” Putin said as he chaired a meeting on the power sector in Siberia. “During the crisis we did everything we could to support you. The crisis is fading away so I ask you to fulfil your obligations,” Putin said after overseeing the restart of the giant Sayano-Shushenskaya hydropower plant. The dam was restarted after being halted last August following an accident that killed 75 workers. Dark memories of that accident, that also resulted in higher-than-expected nationwide power price hikes and prompted calls for a new overhaul of the power sector, could have made Putin particularly angry on Wednesday. He not only mentioned the names of the oligarchs but spent a fair amount of time describing their fortunes and mistakes. Speaking of Prokhorov, Putin said: “Economically, he feels quite well. As some say, he cashed out. So he is visiting now different offices, he saw me the other day. I have very good relations with him. He is looking how to invest his funds but he must fulfil his (power investment) obligations”. Prokhorov had topped Russia's rich list in 2009 as he sold most of his assets before the crisis peaked. He remains Russia's second richest man with personal wealth of $17.85 billion. Speaking of Potanin, Putin said: “He took giant assets for free... But nothing has been done as far as his investment programme is concerned”. Potanin controls OGK-3, Prokhorov owns TGK-4, Leonid Lebedev controls TGK-2 while Viktor Vekselberg controls Complex Energy Systems. TGK-2 underperformed the market in early trade while OGK-3 and TGK-4 performed better than the overall market. Putin said state-run power firms and foreign power companies, such as Enel, Eon and Fortum, were sticking to investment obligations. “Meanwhile, our domestic investors have run away,” he said.
