Rostelecom privatization might be possible in 2015 - Nikiforov
MOSCOW. Dec 19 (Interfax) - Russia's Communications Ministry believes that the privatization of national provider OJSC Rostelecom might happen in 2015 with consideration of its plans for finishing its reorganization, Communications Minister Nikolai Nikiforov said a meeting with journalists.
"It will be a fine day when Rostelecom becomes a non-state company," he said, adding that the real timeframe for the privatization would hinge on market trends.
"It's very hard to estimate, but it could happen in 2015, given that 2013 is the year the reform is due to end, 2014 will be for preparations," he said.
Nikiforov said that 2015 might be approximate timeframe when considering the company's current reorganization through its merger with OJSC Svyazinvest. He added that the shareholders should decide on the reorganization in the near future. A presidential order expects Rostelecom and Svyazinvest's reorganization to reach completion in March 2013. This date might be considered in the shareholders decisions while legal procedures would be delayed until autumn 2013.
Rostelecom's privatization might take place through various scenarios, the minister said, including the spin-off of specialized operations prior to sale to investors since these operations might now hamper the privatization.
"It'll happen anyway, this can't go on forever. The company will ultimately become private by some principles or other," Nikiforov said.
The Communications Ministry in the summer suggested discussing the privatization of Rostelecom next year instead of this, insisting that the government stale could not be sold until the reorganization in which Svyazinvest is absorbed by Rostelecom is completed and Svyazinvest ceases to exist.
Deputy Communications Minister Denis Sverdlov said in the summer that Rostelecom's potential sale was complicated by the fact that the company performs a lot of state functions and it was "hard to imagine these being done privately."
