The Russian government has abandoned plans to privatise Rostelecom this year, citing uncertainties over valuation.
First deputy finance minister Tatyana Nesterenko announced the news at a meeting today, saying shipping company Sovcomflot and…
The Russian government has abandoned plans to privatise Rostelecom this year, citing uncertainties over valuation.
First deputy finance minister Tatyana Nesterenko announced the news at a meeting today, saying shipping company Sovcomflot and Novorossiysk Commercial Sea Port are also no longer tabled for privatisation in 2014 because of valuation uncertainties, Russian news agency Itar-Tass reported.
Rostelecom was one of multiple state-owned assets marked for privatisation between 2014 and 2016 in a July 2013 government decree. Sberbank was hired to advise on the Rostelecom process.
The Federal Agency for State Property Management had planned to prepare the terms and conditions of the privatisation by July ahead of a sale by the end of the year. However, agency head Olga Dergounova told reporters in March that worsening market conditions meant privatisations would be delayed.
The government owns 52.32% of Rostelecom’s ordinary shares via the state property agency, Vnesheconombank and the Russian Direct Investment Fund. Rostelecom owns 13.33% of its own ordinary shares and subsidiary Mobitel 6.77%.
Communications minister Nikolai Nikiforov had been quoted as saying the state expected to raise at least US$5bn from the sale.
