Federal Grid Co. and OAO MRSK Holding (MRSK) tumbled after Kommersant reported Rosneftegaz, the state company chaired by former Deputy Prime Minister Igor Sechin, may be given control of the energy companies.
MRSK lost 4 percent to 1.71 rubles by the close, the lowest level since August 2009. Federal Grid fell 1.7 percent to 19.15 kopeks after losing as much as 5.4 percent earlier.
The government plans to propose a single team of directors for the boards of Federal Grid, Russia’s monopoly for high- voltage power transmission lines and MRSK Holding, the country’s largest electricity distribution company, Kommersant reported, citing people familiar with the situation. At the same time, stakes in MRSK and Federal Grid will be transferred to a unit of Rosneftegaz, according to Kommersant.
The plan would keep the Russian grid under Sechin’s “strong influence,” even after his departure from the Cabinet, Igor Goncharov, an analyst at ING Bank Eurasia ZAO, said in an e-mailed note. “This would be negative for investors’ sentiment.”
Rosneftegaz has a “significant financial resource” that could be used to bolster national energy companies, Putin said on May 24 at a meeting near Moscow.
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