The privatisation of Russia’s leading telco Svyazinvest has moved a step closer with the news that the government may sanction splitting the company to facilitate its sale. At present, Svyazinvest is 75% minus one share owned by the state, with Sistema holding the remainder. Local reports indicate that Rostelecom, Russia’s largest long-distance phone company, may be spun off from Svyazinvest and brought under full government control, with Sistema then freed up to increase its stake in Svyazinvest to 100%. Sistema’s subsidiary Comstar UTS secured 25% plus one share in Svyazinvest for €985 million in December 2006.
