14 Apr 2022 18:32

Rostec asks for govt stake in Rostelecom 'to concentrate resources' amid sanctions

MOSCOW. April 14 (Interfax) - Government officials are looking into transferring a state-owned 35.91% stake in Rostelecom to the state Rostec corporation, sources at two ministries involved in the matter told Interfax.

One of the sources said Rostec itself came up with the initiative in a request to the Russian president in March.

The source said Rostec's rationale was that the state corporation and state company operated in related areas. Rostec consolidates competencies in 5G networks and equipment development and "rigorous coordination and pooling concentration of resources on the part of the state and domestic industry is needed" amid sanctions.

Rostec also suggested looking at handing it trusteeship over stakes in Rostelecom held by VTB and VEB, respectively 7.93% and 3.16% of share capital or 11.09% in total and 47% with the stake held by the Russian Federal Property Agency (Rosimushchestvo).

One of the sources said the president had given instructions to look at Rostec's request and report the findings. The relevant ministries and agencies, including the Finance Ministry, Rosimushchestvo, Digital Development, Industry and Trade and Economic Development ministries are working on it.