OAO MRSK Holding, Russia’s largest electricity distribution company, and Federal Grid Co. fell after signing an agreement transferring MRSK under the management of the high-voltage power transmission monopoly.
Federal Grid declined 2.2 percent to 23.18 kopeks by the close in Moscow, the biggest drop since June 20. The shares rose 5.4 percent earlier. MRSK Holding slid 1.1 percent to 1.758 rubles after rising as much as 3.3 percent. The Micex Index fell 1.2 percent to 1,405.15.
Federal Grid “assumes the powers of the sole executive body” of MRSK, the companies said in e-mailed statements today. The management transfer will allow the companies to coordinate the development and modernization of the electricity distribution system and to implement a joint investment program, the statement said.