Transneft Jumps Most in 2 Weeks on State Stake Bet: Moscow Mover

OAO Transneft, Russia’s oil-pipeline operator, surged the most in two weeks after the Economy Minister said the state will retain its majority stake in the company.

Transneft’s preferred shares jumped 4.2 percent to 44,341 rubles by the 6:45 p.m. close in Moscow, the strongest advance since May 24. Russia’s 30-stock Micex Index rose 1.8 percent to 1,336.33.

The government plans to reduce its stake in the oil-pipeline monopoly to 75 percent plus one share by 2016, Economy Minister Andrei Belousov said at a government meeting in Moscow today. Former President Dmitry Medvedev pledged in June last year to relinquish government control of some of the biggest state companies.

“Selling a larger amount of shares would have pressured the stock price,” Alexander Ivanischev, an analyst at Infina Investment Co., said by phone. “Now we know that nothing will change in the ownership structure.”

Transneft’s $1.1 billion of Eurobonds due 2018 rose, cutting the yield 25 basis points to 4.369 percent. The yield headed for the biggest daily fall since Feb. 28.

The government will reduce its stake in high-voltage transmission monopoly Federal Grid Co. by the same date, Belousov said.

Russia will sell its entire stakes in OAO Rosneft, the country’s biggest oil company, OAO RusHydro, its biggest renewable energy producer, power utility OAO Inter RAO UES and overseas crude producer OAO Zarubezhneft, according to Belousov.

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