Support The Moscow Times!

Dvorkovich to Meet Rostelecom Board

Deputy Prime Minister Arkady Dvorkovich will meet the board of Rostelecom this week amid reports he may suggest replacing the management of the state-controlled telecoms operator after the house of its CEO was searched in a fraud probe.

Aliya Samigullina, spokeswoman for Dvorkovich, told Reuters on Friday he plans to meet Rostelecom's board to discuss the reorganization of Rostelecom and its state-controlled shareholder Svyazinvest.

A source close to Rostelecom's shareholders said the meeting would take place on Dec. 12, with the company's budget and plans for 2013 known to be on the agenda.

"I admit that (the management reshuffle) may be discussed but I see no legal grounds for it," the source said.

Vedomosti cited two sources as saying Dvorkovich might touch on the idea of replacing the company's management.

The government owns a 53.2 percent stake in former fixed-line monopoly Rostelecom, which was transformed last year into a multi-service provider by merging with Svyazinvest's regional operators.

Russian investigators in November searched the home of Alexander Provotorov, chief executive of Rostelecom, and the home of a minority shareholder, Konstantin Malofeyev in a probe unrelated to Rostelecom.

The investigation is linked to a $225 million loan by VTB? to finance a business deal in 2007 in which, investigators suspect, Malofeyev was involved on both sides of the transaction. It follows a slew of scandals that has soured the mood of investors toward Russia.

Newspapers reported in October that Provotorov, who took the helm at Rostelecom in July 2010, could be replaced by Vadim Semyonov, the head of state telecoms holding company Svyazinvest who studied law with Prime Minister Dmitry Medvedev.

Rostelecom declined comment.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more