June 7 (Bloomberg) -- OAO RusHydro and OAO Inter RAO UES rose after Russia’s Economy Minister Andrei Belousov said the state will sell its entire stake in the power utilities by 2016.
RusHydro added 4.7 percent to 85.03 kopeks, the highest since May 16, in Moscow. Its American depositary receipts rose 3.7 percent to $2.55 in New York, the fourth-biggest gainer on the Bloomberg Russia-US Equity Index of Russian companies traded in the U.S. The gauge rose 2 percent to 85.18. Inter RAO climbed 1 percent to 2.8 kopeks.
“Private ownership frequently proves itself more effective, this can be traced to the Russian power sector as a whole,” Dmitry Bulgakov, an analyst at Deutsche Bank AG in Moscow, said by phone. “It creates more incentives for value creation and cost-cutting.”
The government also plans to reduce its stake in Federal Grid Co., Russia’s monopoly for high-voltage power transmission lines, to 75 percent and one share by 2016. Federal Grid advanced 2 percent to 19.33 kopeks.
To contact the reporter on this story: Ksenia Galouchko in Moscow at email@example.com