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The application of controllable shunt compensation by magnetically controlled shunt reactors is considered for improving the characteristics (normal operation, small signal and transient stability) of 500 kV long-distance transmission systems. First 500 kV, 180 MVA magnetically controlled shunt reactors are currently considered to be installed at the 1000 km AC transmission systems, such as line between Ural and Siberia regions (Russia) as well as Kazakhstan North-South Interconnections. The proposed type of AC transmission system may be used as a reliable interconnection between the distant power systems. It has proved to have a very good properties in damping low frequency inter-area oscillations when using appropriate control systems.