OREANDA-NEWS. March 31, 2014. Rostelecom OJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that it has completed the first stage of the deal to establish a joint venture with Tele2 Russia, which will operate as LLC T2 RTK Holding.

As a result of completing the first stage of the deal, Rostelecom has contributed the shares of its mobile subsidiaries to the JV, including CJSC Sky Link, as well as the assets of its start-up regions which include Moscow and St Petersburg among other regions. Debt obligations amounting to RUB 37 billion were simultaneously transferred to the JV.

By closing the first stage of the deal, Rostelecom has received a 45% voting interest and a 26% economic interest in the JV.

The second stage of the deal, which will involve transferring all of the Company’s integrated mobile assets into the JV, is scheduled to be completed by the end of this year. CJSC RT-Mobile, a 100% subsidiary of Rostelecom, is expected to be registered on 1 April, 2014. Rostelecom’s integrated mobile assets will be transferred to RT-Mobile as part of the reorganisation process.

This deal is a key event in the implementation of Rostelecom’s mobile strategy. By possessing a stake in a large and fast-growing mobile operator, Rostelecom will significantly strengthen its presence in Russia’s rapidly developing mobile data market and successfully compete with the main market players.

Sergey Kalugin, President of Rostelecom commented: “We are on track to complete the deal to create this important JV and we are pleased to have finalized the first phase on schedule. The JV is now able to launch its integration process and work on its detailed business plan and strategy. The second stage of the deal will see Rostelecom merge its integrated mobile assets into the JV, a process which begun as soon as shareholders approved the spin-off and officially establish the company. We still have a number of significant steps to make before licences are reissued and RT-Mobile is transferred into the JV. We expect the second stage of the deal to complete by the end of the year.”