Message from the Chairman of the Board of Directors of PJSC Rosseti South
GRI 2-22
Chairman of the Board of Directors , PJSC Rosseti South
Esteemed shareholders, investors and partners!
In 2025, PJSC Rosseti South management delivered on the tasks aimed at maintaining stable growth rates. The Company has achieved excellent results in all aspects of its operations and has become involved in federal and regional projects that contribute to the socio-economic development of the regions where it operates. The reporting period also showed the first results of PJSC Rosseti South’s activities as a systemic territorial grid organisation (SGO), whose goal is to ensure reliable and high-quality electricity supply to consumers and to consolidate the power grid facilities.
Key events
One of the main corporate events of 2025 was the reorganisation of PJSC Rosseti South in the form of the merger with JSC Rosseti Kuban.
The reorganisation process took into account the Energy Strategy of the Russian Federation for the period up to 2050Approved by Decree of the Government of the Russian Federation No. 908-R dated 12 April 2025., i.e., the creation of a single state-owned energy complex by consolidating power grid assets on the basis of a single company.
After the completion of the reorganisation process, two key power grid companies in the south of Russia were merged into a single operating structure. As a result, the Company’s geographic reach has significantly expanded and the volume of services provided in the electricity transmission market has increased.
Today, the Company unites distribution grid complexes of six subjects of the Southern Federal District (Astrakhan, Volgograd, Rostov Regions, Krasnodar Territory, Republics of Adygeya and Kalmykia), as well as the Sirius federal territory.
In 2025, the Company served as the single centre of responsibility for reliable power supply to consumers in each region, as a systemic territorial grid organisation. It ensured the operation of both ownerless infrastructure and the facilities of organisations that had lost their status as territorial grid organisations (TGOs), municipal grid infrastructure.
The efforts of the Company’s management in the reporting period were also focused on improving the efficiency of business processes, digital transformation, as well as strengthening technological independence and energy security.
Corporate governance
The Board of Directors, which works in close cooperation with all shareholders, plays a crucial role in the operations of PJSC Rosseti South and its strategic planning.
During the reporting period, two meetings were held and 50 absentee votes were taken by the Board of Directors of PJSC Rosseti South for decision-making purposes, discussing a total of 187 issues. Among the important decisions, the approval of several strategic programmes has been made: investment plans for
Operational and financial results
To address the challenges of improving the reliability and quality of power supply for consumers, the Company has invested approximately RUB 7.4 billion in the development of its power grid infrastructure in regions where it operates. The Company allocates funds for the upgrading of power grid facilities, new construction and new energy capacities.
Despite the challenges faced from the outside, PJSC Rosseti South not only remained resilient but also continued to progress, consistently pursuing its strategic objectives and achieving remarkable outcomes, which demonstrated the success of its chosen approach. The Company improved its key indicators: revenue under IFRS in the reporting year amounted to RUB 96.9 billion,
Plans for 2026
The main objectives of the Company for 2026 are to implement all planned investment measures and repair programmes, as well as to ensure readiness for peak load seasons. The Company will continue to invest in new projects aimed at developing road, port, and resort infrastructure as well as the social sector. One of the main tasks is to support the growth of regional businesses, small and medium-sized enterprises in the territories of the Southern Federal District.
The main priorities of the Board of Directors for 2026 are to maintain the financial stability of the Company, develop the power grid complex, make grid connections more accessible, and boost the amount of non-tariff services. Particular emphasis is placed on matters related to human capital, including employee training and development, maintaining social safeguards and benefits, and ensuring the most secure and comfortable work environment for the Company’s workforce.
I am confident that the Company’s steady growth will be driven by our production achievements, accumulated expertise, technical capabilities, as well as the collective efforts of our employees, management, and shareholders of PJSC Rosseti South.