OAO Inter RAO UES (IRAO.MM), Russia’s state electricity holding company, has abandoned plans to expand overseas because of uncertainty over domestic regulations, said its head, Boris Kovalchuk, reports Reuters.

The company had been linked to a number of foreign deals, including Italy and Spain in Europe.

This will be good news for many investors, who favour investment in the highly underdeveloped Russian market. They had been unhappy with Inter Rao’s foreign acquisition strategy.

It is unclear if this latest news is linked to the announcement earlier this month by Andrei Belousov, Russia’s economy minister, that the state would sell its entire stake in both Inter RAO and OAO RusHydro by 2016.

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