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Putin Punishing Utilities Means Cheapest Stocks Falling More

President Vladimir Putin’s power-industry tariff freeze and delays to state-asset sales mean the shares of electricity providers are poised to tumble from their cheapest valuations in three years, according to Alfa Capital.

MSCI Inc.’s Russia Utilities Index slumped 24 percent this year and trades at a 64 percent discount to the MSCI Emerging-Markets Utilities Index on a price-to-book basis, the biggest gap since March 2009. The gauge is the worst performer in 2012 among six Russian industry indexes compiled by MSCI.