The Dubai government's sovereign wealth fund, Dubai World, has pulled out of a $5.3 billion deal to take control of Russian power firm OGK-1 due to poor market conditions, a source close to the deal said on Monday.

'The investor [Dubai World] is not ready to put in money under the market conditions we're seeing now,' the source said.

A spokeswoman for Dubai World, which guaranteed $100 million in July towards the acquisition of the electricity generator, said it could not immediately comment.-Reuters