MOSCOW, June 19 (RIA Novosti) - Svyazinvest, a Russian telecoms giant, will be privatized by the end of 2006, the information technologies minister said Monday.
Privatization has long been discussed, but has been put on ice until parliament has passed a bill on securing the interests of the security services and military.
"A draft law on guarantees to special consumers is under consideration in the State Duma [the lower house of parliament]," Leonid Reiman said. "If it is passed during the spring session, then there will be no obstacles to Svyazinvest's privatization."
The spring session ends on July 16.
Addressing an investors' conference in Moscow, Reiman said his ministry was upbeat about the privatization prospects and added that there was still time left for the move by the end of the year.
However, Minister of Economic Development and Trade German Gref said Wednesday that Svyazinvest would not be privatized this year.
Sergei Naryshkin, the head of Russia's government staff, warned Wednesday against rushing the privatization.
"I think that it would not be worth the state's while to hurry the privatization of a company such as Svyazinvest," Naryshkin told reporters at an international economic forum in St. Petersburg.
The Russian Federal Property Fund holds 25% minus two shares in Svyazinvest, with 50% plus one share belonging to the Federal Property Management Agency and the remaining block held by Cyprus-based Mustcom Ltd.
Reiman's deputy, Dmitry Milovantsev, said it would be pointless putting the privatization on hold after issues connected with providing the military and security services with communications services were resolved.
"Svyazinvest's privatization is in principle technically and technologically possible," he said, adding that the decision did not depend on his ministry but on parliament.
Milovantsev said the interests the military and security services had to be protected during the switch to a competitive market.
"When these issues are resolved, competition on the very competitive telecommunications market should be restrained no longer," he said.
Svyazinvest controls 51% in Rostelecom, Russia's largest long-distance telecom services provider (RTS: RTKM), and has a minority interest (28%) in Moscow City Telephone Network (RTS: MGTS).
The government-owned package of 75% minus one share is to be privatized in a single lot, with the state retaining the "golden share" to be able to influence corporate decisions.
