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Federal Hydrogenerating Co JSC
OAO RusHydro (RSHYY) fell in New York after Interfax news agency reported that Russia may not sell a stake in the nation’s largest hydropower producer.
RusHydro’s American depositary receipts dropped 4.1 percent to $2.56 in New York, making it the second-biggest decliner on the Bloomberg Russia-US Equity Index (RUS14BN) of Russian companies traded in the U.S. The gauge dropped 0.9 percent to 85.90.
“An expectation of privatization was a strong driver for the company’s stock,” Alexander Seleznev, an analyst at VTB Capital in Moscow, said by phone. “People expected the company would get a strategic investor and improve its corporate governance as a result of privatization.”
Russia added OAO Rosneft, OAO RusHydro, Federal Grid Co. and OAO MRSK Holding to its list of strategic assets, which may preclude the government from privatizing them, Interfax reported, citing President Vladimir Putin’s decree signed yesterday.
A spokeswoman at the Kremlin declined to comment when contacted by Bloomberg News after normal business hours.
The government owned 60.38 percent of RusHydro as of March 31, according to the company’s website.
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