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. Last Updated: 07/27/2016

7 RenCap Mosenergo Nominees

Renaissance Capital investment bank has nominated seven candidates to the board of Moscow utility Mosenergo, a source close to the heat and power company said Wednesday.

Alexander Savin, director of Renaissance Capital's investment banking department, would neither confirm nor deny that the bank had put up candidates for Mosenergo's board.

Russian business groups, most with fuel-supply businesses and heavy energy needs, have been buying up large minority stakes in partially privatized regional utilities belonging to state-controlled power monopoly Unified Energy Systems.

Renaissance Capital has taken a particular interest in the electricity sector as the government starts to break a near total state monopoly on power generation and launch a competitive power market.

The buy-up has added to annual intrigue surrounding nominations to utilities' boards as they identify their new owners and the size of their stakes.

Mosenergo is the largest of UES's regional units. It was unclear how much Mosenergo stock is held by Renaissance and on whose behalf.

Mosenergo stock is up 30 percent since the beginning of the year and by 5:10 p.m. Wednesday it had risen 6.5 percent to $0.0475, an intraday high.

The source said four Renaissance Capital employees and a senior Mosenergo official -- former securities commission chief Dmitry Vasilyev -- were among Renaissance's candidates.

Two current Mosenergo board members had been nominated for another term: Pavel Teplukhin of Troika Dialog Asset Management and Anatoly Chabak of NIKoil investment house.

The UES breakup should result in the creation and privatization of dozens of new generating companies.

The investment bank announced last year it had a stake in Kuzbassenergo, a large Siberian utility in the Kuzbass coal heartland where industrial giants Russian Aluminum, coal-to-banking conglomerate MDM and Gazprom's petrochemical subsidiary Sibur have operations.

Vedomosti reported Wednesday that the Kuzbassenergo stake has been sold to MDM Group.