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Italian utility Enel has agreed to sell its stake in its Russian unit, Enel Russia.
The company has signed two separate agreements with Moscow-based oil company PJSC Lukoil and private fund Gazprombank-Frezia for the sale of 56.4% share for €137 million (£117m).
Following completion of the transaction, Enel said it will dispose of all its Russian power generation assets.
These include approximately 5.6GW of conventional capacity and around 300 MW of wind capacity at different stages of development.
The company said the sale of Enel Russia will have a positive effect of about €550 million (£470m) on its consolidated net debt.
However, it has been predicted it will generate a negative impact on the group’s net income for approximately €1.3 billion (£1.1bn).