29 May 2024 19:24

Putin permits Rostelecom entity to buy out Nokia's stake in RTC Network Technologies JV

MOSCOW. May 29 (Interfax) - Russian President Vladimir Putin has permitted Restream LLC, a PJSC Rostelecom entity, to buy out the 49% stake of Nokia Solutions & Networks in the RTC Network Technologies joint venture, and the corresponding order has been published on the portal of legal information.

Rostelecom and Nokia established the RTC Network Technologies LLC JV in September 2018. The JV's primary purpose has been to create a portfolio of high-tech network solutions based on Nokia technologies integrated with advanced domestic developments.

Rostelecom subsidiary JSC Westelcom received 51% and Nokia received 49%, respectively, in the JV. The charter capital of RTC is 100 million rubles.

Nokia announced its withdrawal from the Russian market in April 2022. The company suspended shipments to Russia, stopped concluding new contracts and moved its R&D activities outside the country.

Permission to buy out Nokia's share in the joint venture will allow RTC Network Technologies to integrate into the Rostelecom group, the Rostelecom press service told Interfax.

"After the second shareholder stopped working in Russia in 2022, the continuation of the company's activities using the previous business model became impossible. The transaction was subject to approval in the prescribed manner, and now the decision has been received," the Rostelecom press service said.

The transaction will be completed in the near future; other details have not been disclosed, the company added.

Restream LLC was registered in June 2020 and is 100% owned by Rostelecom's Telecom-1 division.