Russia: It’s now, or 2008, for Svyazinvest

The long-awaited privatization of Svyazinvest, Russia’s national fixed-line telecoms operator, could finally get under way within the next two months.

Support from the communications and economy ministries in recent weeks suggests that the sale should take place this year, analysts say.

According to Konstantin Chernyshev, telecommunications analyst at UralSib Financial Corporation in Moscow, for the privatization to take place Russia’s legislature, the Duma, needs to pass amendments on “special users” of telecoms services before Svyazinvest can be officially included in the government’s privatization list.

This needs to be passed before the Duma’s summer break in July. “Therefore the next two months will be telling, and could spark a rally in telecoms stocks,” Chernyshev says.