OREANDA-NEWS. February 27, 2010. The Russian Energy Ministry’s head has suggested that the Russian hydropower generation sector be consolidated prior to its expansion into foreign markets. The ministry is in talks with RusHydro on consolidation of companies in the sector, including design, repair and scientific firms. The final objective of the consolidation is an entry into foreign markets. Several dozen projects to build hydroelectric power plants abroad are the focus of discussion.

We are upbeat on RusHydro’s plans to consolidate companies in the sector and break into foreign markets. The details of the forthcoming consolidation should be of paramount importance. In our view, the company’s vertical integration and as a consequence, its enlargement, should lead to the enhancement of its fundamental appeal, efficiency and reliability. We consider expansion into foreign markets as another promising undertaking by RusHydro, given the broad and, in large measure, unique experience accumulated in the hydropower generation sector, which is needed and highly appreciated abroad. External markets would allow RusHydro to diversify and expand business. In our opinion, the announced plans could act as a driver.