VTB Won't Consider IPO for Telecoms JV for At Least 3 Years - Executive

   By Olga Razumovskaya 

MOSCOW--Russia's second-largest lender VTB Group (VTBR.RS) won't be considering an initial public offering for the telecommunications asset it owns for at least another three years, the bank's deputy head Yury Solovyov said during a conference call Thursday.

Earlier Thursday VTB and telecoms companies Tele2 Russia and state-controlled Rostelecom (RTKM.RS) officially annouced the merger of mobile assets of Tele2 Russia, which belongs to VTB and a group of strategic investors, with those of Rostelecom, which will control the remaining 45% of the joint venture.

Mr. Solovyov said the new joint venture company will need a minimum of three years to reach a "good level of development" before VTB may consider an IPO, Mr. Solovyov said. He added he company will consider all potential financing options when that time comes.

The newly created T2 RTK Holding, 55% of which now belongs to VTB Group and its partners, Bank Rossiya and entities controlled by Alexei Mordashov, will operate under the Tele2 brand, VTB said.

Write to Olga Razumovskaya at [e-mail]