RusHydro recovery plan 'partially' underway, transfer of Far East networks to Rosseti part of it - Energy Ministry

MOSCOW. June 11 (Interfax) - The financial recovery of RusHydro is "partially" underway, Deputy Russian Energy Minister Yevgeny Grabchak told journalists.

"It's partially underway," he said, when asked what stage the company's financial recovery was at.

Grabchak said there had been a decision to compensate RusHydro for losses through payment for capacity - the matter was considered at a meeting of the government commission on June 4, the Kommersant newspaper reported earlier.

Also, when asked about the transfer of RusHydro networks in the Far East to Rosseti , he said that "this is one of aspect of RusHydro's unbundling." "This [issue] is being examined, the companies have to come to an agreement," he said, adding that an audit of these assets was underway.

RusHydro has asked the government for a financial recovery program, though the company currently has no confirmation that such a program has been drafted, CEO Viktor Khmarin told Interfax in May. "We are asking for such a program, but so far I have no information about a program being signed or even drafted by the government for RusHydro's financial recovery," Khmarin said.

It has been reported that the Russian government jointly with RusHydro management has been drafting proposals to improve the company's financial state. Waiving dividends until 2028 is under discussion as part of the plan.

As things stand, shareholders will be asked at their annual meeting on June 30 to consider two dividend options: a waiver or payment at 0.0756 rubles per share. Recommendations for shareholders had not been issued when the ballot paper was approved, so the two options were proposed. The final recommendations will reflect the government's stance.

A similar situation arose at the last RusHydro AGM, when a waiver or payment of 0.0779 rubles per share was proposed. A decision was not reached because the government did not issue any instructions.

RusHydro has more than 60 hydropower plants in Russia, thermal power plants and power grid infrastructure in the country's Far East, as well as power supply companies and research and engineering institutes. The company's power plants, including the Boguchany HPP, have installed capacity of more than 38.6 GW.

RusHydro's principal shareholder as at the end of September 2023 was Russia's Federal Property Management Agency with 62.2%, VTB state bank owned 12.37%, and En+ Group held around 9.61%.