Putin signs decree on RusHydro recapitalization
MOSCOW. Nov 22 (Interfax) - Russian President Vladimir Putin has signed a decree on the recapitalization of federal hydrogenerating company RusHydro .
"We're looking at a substantial amount for recapitalization - 50 billion rubles - to come from the 2012 budget. The money needs to go towards developing the Far East's power sector," Putin said at a meeting with Viktor Ishayev, the Far East development minister and presidential envoy to the Far East Federal District, and Yevgeny Dod, head of RusHydro, in the Kremlin.
RusHydro shares jumped 2.5% on the news by 11:26 a.m. Moscow time to 0.7465 rubles a share on the MICEX-RTS exchange. RAO Energy Systems of East soared 9.1% to 0.2637 rubles a share.
Putin said the funds would be provided for CHP plant projects in the city of Sovietskaya Gavan, the first stage of the Sakhalin GRES-2 state district power plant, the first stage of the Yakutskaya GRES-2 PLANT and the second stage of the Blagoveschensk CHP plant.
"These plants are crucial. Firstly they are highly depreciated, and local people are waiting eagerly for these issues to be resolved. We have been discussing these issues for some time," Viktor Ishayev said. "Perhaps tariffs won't be lowered there today, but at least they'll be put on hold and that stabilization will be a very positive factor," he said.
The decree, a copy of which was circulated by the Kremlin press office, states that RusHydro's capital can be increased in the condition that the state stake does not fall below 60.5%.
An additional share issue by RusHydro will be paid for with the 50 billion rubles plus Russia's stakes in a number of power companies: 14.83% of Ust-Srednekansk Hydro, 3.28% of Energy Systems of East, 29.93% of Sakhalinenergo and 42.37% of Irkutsk Power Grid Company.
The new decree also amends an existing decree on strategic enterprises, of which RusHydro is one: Russia's stake in the company is now 60.5% (previously 60.8%).
At an extraordinary meeting last Friday, RusHydro's shareholders approved an additional share issue consisting of 110 billion ordinary shares, which can be paid for in part with shares in OJSC Irkutskenergo , which is 40%-owned by Inter RAO UES .
The stakes in Irkutsk Power Grid Company and Irkutskenergo will be used to pay for shares in OJSC EuroSibEnergo. EuroSibEnergo controls Irkutskenergo, and firms associated with it control Irkutsk Power Grid Company.
Russia's presidential commission for the fuel and energy complex has also decided to sell Inter RAO's stake in Irkutskenergo to OJSC Rosneftegaz. The Energy Ministry also believes the transfer of the stake directly to RusHydro to be a possibility.
The 50 billion rubles for RusHydro's recapitalization are sourced in Rosneftegaz dividends for January-September 2012.
At present, RusHydro has 317.638 billion issued ordinary shares, par value one ruble each.
RusHydro owns the majority of hydro-power plants in Russia and controls the Far East power holding Energy Systems of the East. The company also owns several power sales assets. Total installed electricity capacity in the RusHydro Group comes to around 35.2 GW.
