OAO RusHydro (HYDR), Russia’s biggest hydropower producer, and OAO Inter RAO resumed electricity exports to China as domestic demand decreases and a weakening currency make dollar-denominated sales more profitable.
Moscow-based RusHydro plans to export 75 million kilowatt- hours to China this month, the company said in an e-mailed statement today. Inter RAO, Russia’s state power trader and operator of power plants in the former Soviet Union, will manage RusHydro’s exports, the statement said.
Inter RAO stopped exports to China in February 2007 after Russia raised tariffs on Chinese sales. Russian power demand may fall as much as 8 percent this year after growing 2 percent last year, according to industry watchdog Market Council.
RusHydro said all Chinese sales are denominated in U.S. dollars, making the operation profitable due to a weaker ruble. The currency has lost more than 19 percent against the dollar so far this year. Inter RAO is owned by Russia’s nuclear holding company Rosatom Corp.
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