Keep up with the news by installing RT’s extension for . Never miss a story with this clean and simple app that delivers the latest headlines to you.


Rostelecom won’t allow foreign shareholders on security concerns

Published time: June 19, 2013 10:47
AFP Photo / Kirill Kudryavtsev

AFP Photo / Kirill Kudryavtsev

Rostelecom, Russia’s biggest telecommunication group, will reportedly not allow foreign investors into its $5 billion privatization. The Russian state insists it should retain controls over such a strategic asset.

Sale of the state’s 55.2 percent of Rostelecom voting stock has become a matter of discord between Russia’s Ministry of Economic Development and the Ministry of Defense. Under the privatization plan the government should relinquish its Rostelecom shares by 2016, earning an estimated $5 billion in the deal.   

The nationality of buyers seems to have become a concern for the country’s Ministry of Defense. At the moment “it’s necessary to understand … whether it’ll effect our security,” Kommersant quotes its sources in the Ministry.

In 2012, when the Presidential decree for the incorporation of Svyazinvest into Rostelecom was being prepared, the Ministry of Defense, the Federal Protective Service, as well as the Federal Security Service stipulated that the state must maintain control over Rostelecom.

“Given the strategic importance of the consolidated Rostelecom for the defense capacity and security of the State (the mentioned above ministries) think loss of the government controls over the joint company is unacceptable,”  Kommersant reported.

Now Russia’s government is discussing a compromise plan for Rostelecom privatization.

“It’s possible to agree with the members of power ministries if we forbid foreigners to buy (Rostelecom shares),” Kommersant quotes a high ranked Russian bureaucrat as saying.

Rostelecom privatization is most likely to be limited to Russia’s big troika of telecom operators – MTS, Megafon and Vympelcom, the source added. 

At the moment the state’s companies – Svyazinvest Holding and Vnesheconombank – own a total of 55.2 percent of Rostelecom voting shares. Rostelecom capitalization at the RTS-MICEX floor is at around $8.9 billion.

Comments (4)

Anonymous user 20.06.2013 01:15

Some day soon, no wires, glass fibre, etc...... direct flow, similar to adjusting radio...

Anonymous user 19.06.2013 23:08

Glad to hear. They can still trade with Russia. Foreigners (West) don't have to own and control it.

Anonymous user 19.06.2013 19:10

Very wise move. Don't allow dual-citizens in either. To understand why look at usA nightmare

View all comments (4)
Add comment

Authorization required for adding comments

Register or



Show password


or Register

Request a new password


or Register

To complete a registration check
your Email:


or Register

A password has been sent to your email address

Edit profile



New password

Retype new password

Current password



Follow us

Follow us