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. Last Updated: 07/27/2016

KIT to Give Rostelecom Stake to State

KIT Finance, a brokerage saved from bankruptcy last year, plans to hand its stake in Rostelecom to the government as it restructures debt, the brokerage said in a statement Thursday.

The sale will proceed after the price of KIT's stake in Rostelecom, Russia's biggest long-distance telephone company, is independently assessed.

Rostelecom is a "strategically important asset for the consolidation of Russia's communications industry," according to the statement.

KIT spokeswoman Marina Lobanova declined to comment on the size of the bank's stake in the telephone company. Svyazinvest, Russia's fixed-line monopoly, owns 50.67 percent of the company, according to Rostelecom's web site.

Alrosa and Russian Railways acquired KIT last year after it experienced financing difficulties during the market rout in September.