RAO UES capitalization sags

The capitalization of RAO UES declined by $220m due to the postponing of the discussion of bills on reforming the electrical energy industry on the second reading, RAO UES CEO Anatoly Chubais reported at the Russian Forum "The Fuel and Energy Industry in the 21st Century". "The state's losses amount to over $100m," he pointed out. In Chubais's opinion, the slowdown in reforms "undermines the company's capitalization". The head of RAO UES also stressed that "now it is clear that shareholders want the reform and support it; figures testify to this".

According to Chubais, a group of Russian businessmen has bought 10 percent of RAO UES shares over the past 2.5 months; they are planning to have a 25-percent stake in the company. He stated that these businessmen deliberately "bet down share prices" as they "have considerable political influence". At the same time, the drop in RAO UES shares due to the postponing of the second reading enabled share buyers to earn $30m in net revenues. "Some people receive political dividends postponing reforms of the electrical energy industry; others just make money buying cheap shares", Chubais stated.

The RAO UES CEO also said that the postponing was "a blow for the company, a blow for its shareholders and a blow for the state". According to him, "in the near future, the Duma is to decide when the second reading will be held, or the country will be paralyzed".

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