Russia Stocks Gain on Bank Funding Pledge, Paring Record Slump

By William Mauldin

Oct. 7 (Bloomberg) -- Russian stocks rose, paring a record decline yesterday, after President Dmitry Medvedev called on the government to lend 950 billion rubles ($36 billion) to the country's banks to ease credit markets.

OAO Sberbank and VTB Group, Russia's biggest banks, led the advance. OAO Rosneft, Russia's biggest oil producer, pared yesterday's 24 percent decline after crude rose in New York.

The Micex Index gained 5.7 percent to 794.48 at 2:12 p.m. in Moscow, after falling 19 percent yesterday. The dollar- denominated RTS Index climbed 4 percent to 900.60 after retreating 19 percent yesterday, the biggest slump since the index began in 1995.

Sberbank should get more than half of the planned loans at 500 billion rubles, and VTB should get 200 billion rubles, Mevedev said. The debt will be repayable after five years.

Sberbank climbed 3.83 rubles, or 11 percent, to 39.05 rubles. VTB, the second-biggest, rose 14 percent to 3.85 kopeks.

Rosneft advanced 10.4 rubles, or 9.6 percent, to 119.50 rubles after crude oil rose for the first time in five days.

To contact the reporter on this story: William Mauldin in Moscow at wmauldin1@bloomberg.net.