OREANDA-NEWS. JSC RusHydro (ticker symbol: MOEX, LSE: HYDR; OTCQX: RSHYY) announces that the Company's Board of Directors held a meeting in absentia on June 20, 2014.

The Board of Directors approved the report on interim results of 2014 business-plan execution for the 1st quarter of 2014 (including report on implementation of investment program for the 1st quarter of 2014).

Electricity generation and output by RusHydro's power plants in the 1st quarter of 2014 totaled 111.3% and 112.2% of the planned volumes for the quarter respectively. The overshoot was a result of favorable hydrological conditions and regimes allowed by the Federal Water Resources Agency.

In the 1st quarter of 2014, increase in total installed capacity amounted to 10 MW as a result of completion of technical upgrade and reconstruction works at the cascade of Verkhnevolzhskie HPPs.

Financing of the investment program in the 1st quarter of 2014 amounted to RUB 11.31 bn or 103% of funding plan for the 1st quarter of 2014 and 12% of the annual plan. Actual financing of technical rehabilitation and modernization projects in the 1st quarter of 2014 totaled RUB 4.61 bn or 105% of the plan for the 1st quarter of 2014 and 11% of the annual plan of RUB 41.26 bn.

The Board of Directors commissioned Evgeny Dod, Chairman of the Management Board of RusHydro, to develop and submit for the Board's review by December 31, 2014:

Key Performance Indicators of RusHydro for 2015.

The list and methodology of calculation of RusHydro's KPIs in compliance with the requirements to KPI's of the state companies developed by the Federal Agency for State Property Management (Rosimushchestvo).

The Board of Directors resolved to cut sales, general and administrative expenses (SG&A) in 2014 by 15% of their actual amount for 2013, including execution of the social partnership agreements, as well as through executive staff optimization, improvement of compensation scheme, and also through decreasing number and costs of works implemented by contracting parties. The Board of Directors commissioned Evgeny Dod, Chairman of the Management Board of RusHydro, to develop and approve the base for lowering SG&A and methodology of assessment of execution of these decisions by August 1, 2014.

The Board of Directors approved the amended insurance protection program of RusHydro for 2014.

The amendments are aimed to execute the government's commission to provide the employees of the state companies with vouchers to health resorts of the Republic of Crimea. To finance the program the expenses for voluntary medical insurance of the Company in 2014 should be increased by 5% of the planned amount.

The Board of Directors approved the Insurance Regulations of RusHydro.

The Board of Directors approved the voluntary medical insurance agreement (including the addendums) between RusHydro and Alliance Insurance Company, qualified as interested party transaction, and determined the price of the agreement in the amount of RUB 64,833,925.50 (VAT free).

The insurance regulations and agreement were updated in compliance with changes in the Russian insurance legislation.

The Board of Directors commissioned RusHydro's representatives at the AGM of CJSC TPP in Sovetskaya Gavan" to approve the general contractor agreement for construction of heat and power plant in Sovetskaya Gavan" city in the Far East of Russia, based on the results of an open tender, qualified as major transaction.

The Board of Directors commissioned RusHydro's representatives at the AGM of CJSC TPP in Sovetskaya Gavan" to approve the following interrelated transactions, qualified as major transactions:

Sale-purchase agreement between RAO ES of East (seller) and CJSC TPP in Sovetskaya Gavan" (buyer) of project documentation for implementation of the investment project for construction of heat and power plant in Sovetskaya Gavan" city in Khabarovsk region.

Novation agreement. According to the agreement RAO ES of East assigns the rights (requirements) under contract for planning and surveying works at the project to CJSC TPP in Sovetskaya Gavan".

The Board of Directors approved the paid service contract between RusHydro and the Russian Union of Industrialists and Entrepreneurs (RSPP), qualified as interested party transaction, and determined the price limit of the agreement in the amount of RUB 220,000 (including VAT).

The agreement provides for preparing the expert report on results of review of corporate sustainability report of RusHydro Group.