Business | Economy
Medvedev win may aid state-run companies
Dmitry Medvedev's victory in Russia's presidential election on Sunday will benefit the stocks of state-controlled companies including Gaz-prom, Rosneft, Transneft and Sberbank, according to Renaissance Capital.
- Bloomberg
- Published: 00:31 March 4, 2008
Moscow: Dmitry Medvedev's victory in Russia's presidential election on Sunday will benefit the stocks of state-controlled companies including Gaz-prom, Rosneft, Transneft and Sberbank, according to Renaissance Capital.
Medvedev, the current Gazprom chairman, had 70.2 per cent of the vote with 98.1 per cent of returns counted yesterday morning, according to the Central Election Commission, giving him a mandate to succeed President Vladimir Putin.
"Medvedev has mentioned improving bureaucratic procedures, supporting new business, transferring administration functions to the private sector, reducing the number of bureaucrats and improving the quality of state-owned companies," Renaissance strategists Roland Nash, Tom Mundy and Ovanes Oganisian wrote in a report.
Gazprom shares may benefit in the next administration as the world's biggest gas producer spins off its banking arm, Gazprombank, its petrochemical unit, Sibur Holding, and its electricity assets, according to the Moscow-based investment bank.
In Medvedev's presidency, Rosneft, Russia's big-gest oil producer, will probably have the same "superior access to assets," such as the production and refining assets of bankrupt Yukos Oil Co., which it gained under Putin.
Transneft may be "put under considerable pressure to deliver on time" on its plans for a pipeline linking Eastern Siberia to Asia, Renaissance said. Even though Sberbank shares may "struggle for momentum as long as global financials remain out of favour," Russia's biggest bank may gain from higher profit margins as its operations become more efficient.
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