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February 2011 GE Foundation and Eurasia Foundation Sponsor the Russian Energy Compliance Alliance

on 10 March 2013. Posted in Russian Energy Compliance Alliance

In February 2011, the GE Foundation and Eurasia Foundation agreed to support the Russian Energy Compliance Alliance (RECA), a forum for collective action of business and civil society to improve compliance in the power generation industry. The Russian government recently initiated a $140 billion program to increase efficiency of Russia’s national energy grid by 40 percent by 2020. However, in his state of the union address in November 2010, Russian President Dmitry Medvedev stated that the Russian Federation loses over 1 trillion rubles ($35 billion) each year to leakage in state procurement. This leakage is detrimental to Russian businesses, consumers and other stakeholders and could undermine to 2020 objective.

The goal of RECA is to strengthen rule-of-law in the power sector and increase local capacity of business and civil society to prevent official corruption in the Russian Federation. RECA seeks to work with government agencies to improve conditions for market competition by and introducing a new layer of accountability in state procurement of energy technology and equipment.