Russia President Official May Head Board at Rostelecom -- Spokesman

By Olga Razumovskaya

MOSCOW--The head of Russian president's executive office Sergei Ivanov has been lined up to potentially head the board of directors of state telecommunications company OAO Rostelecom (RTKM.MZ), a Kremlin spokesman said Tuesday.

The announcement, made at a press briefing, comes as the government is trying to take a more hands-on role in running state companies.

State-owned companies, including OAO Rosneft (ROSN.MZ) and Gazprom Neft (ROSN.MZ), have sought financial aid from the government as a result of difficulties stemming from the depreciating ruble and from being cut off from global capital markets as a result of sanctions.

"Rostelecom is a major state asset in communications and naturally this is how the state is showing the significance it attaches to further development of the industry," news agency Interfax quotes Dmitry Peskov as saying.

The appointment of government officials to boards of state companies "significantly eases" interaction between the companies and the government, Mr. Peskov said.

During crises "the role of the state in resolving certain economic issues becomes more prominent," he said. "Major companies...need government help."

Rostelecom Chief Executive Sergei Kalugin said on Monday that the company will seek state aid sparingly.

Write to Olga Razumovskaya at [e-mail]