Igor Kostin has been appointed new General Director of OJSC Power Machines

On October 23, 2007, the Board of Directors of OJSC “Power Machines” decided to elect Igor Kostin new General Director of the Company. Until recently Igor Kostin has been working as a Deputy General Director for Business Planning for OAO “Severstal”. At the same time, current General Director of “Power Machines” and Technical Director of RAO “UES Russia” Boris Vainzikher was relieved of his post.

Alexei Mordashov, one of the major “Power Machines” shareholders (acquired about 30% of company shares previously held by “Interros” and became along with RAO “UES” and “Siemens” a strategic investor in “Power Machines”), pointed out that Igor Kostin had taken part in the implementation of a number of major OJSC “Severstal” projects and proved to be a good strategist and manager.

In 2002, Igor Kostin began to run the team, which founded the “Izhora Pipe Plant”, one of the leading enterprises in the pipe-making industry located in St. Petersburg. As the head of the IPP Board of Directors, Igor Kostin made the enterprise unique in its region and Russia’s strongest producer of large diameter pipes.

 At the meeting the Board members commended Boris Vainzikher’s excellent management skills and thanked him for his time and expertise devoted to the development of “Power Machines”.

“The Group under the management of Mr. Vainzikher has made major measures to stay a leader of Russian power-plant industry within a strong competition from global industry leaders. The price of OAO “Power Machines” shares has grown four times during a year, which is a testimony to the fact that the attitude of the market community towards the company has changed”, - company’s shareholder Alexei Mordashov said.

As it was pointed out at the Board meeting, today the shareholders are issuing new ambitious challenges to the company, specifically an increase in output, especially in connection to the massive investment program of RAO “UES Russia”, improvement of the financial situation and reduction in costs.

“Power Machines” will be Igor Kostin’s only place of employment. With effect from October 22 he stepped from the position of OAO “Severstal” Deputy General Director for Business Planning.

Igor Kostin. Born on June 13, 1972. From 1989 to 1993 studied at the Cherepovets Military Engineering Academy of Radioelectronics and at the Cherepovets State University. Received the Grade in Automation and Control in Technical Systems. Graduated from the Northumbria University business school (Newcastle, the UK), MBA grade.

Started to work at OAO “Severstal” in the Central Heat Technology Laboratory as electronics engineer and then became a software engineer. In 1997 joined Strategic Planning Department as economist. In January 1999 appointed Head of Business Projects Office within Strategic Planning Department. From July 1999 to July 2002 - Senior Manager of Strategic Planning Department. From July 2002 - Strategic Planning Director at OAO “Severstal”. From December 2004 till October 22, 2007 - Deputy General Director for Business Planning for OAO “Severstal”.