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. Last Updated: 07/27/2016

Rostelecom to Be Sold

Rostelecom, the biggest telephone company of Russia, which lays and serves cable wires for long-distance and international calls all through Russia, will be put up for sale to the public, a privatization official said Tuesday.

Viktor Nyekrutencko, an economic councilor of the State Property Committee, the main privatization regulator, said that the agency had approved a privatization plan for Rostelecom last week, the first step in the privatization process.

He said that Rostelecom will be the successor-in-law to the Russian part of Intertelecom, the old Soviet intercity phone network which is still operating.

Workers at Rostelecom chose the first privatization variant which gives the workers collective 25 percent of stock as non-voting shares and 15 percent as voting shares.

The state will get the lion's share in the stock: it will own 38 percent of voting shares, or 51 percent of the total.

"There will be tough state regulation there. One representative of the state will be on board of directors", Nyekrutencko said.

The remaining 22 percent of shares will be sold at an interregional check auction for privatization vouchers. The date of the auction is not yet fixed but it will not be later than two months after the firm is established.

Intertelecom, Rostelecom's predecessor, is pursuing joint ventures with a string of foreign telecommunications companies including AT&T, Siemens, Norther Telecom and Philips.

It is currently holding a tender for the right to lay a microwave line from Khabarovsk in Russia's Far East to Moscow.