ROSYY PJSC Rostelecom (CE)

By Lukas I. Alpert

MOSCOW--Russia's new economy minister Alexei Ulyukaev laid out an updated plan Thursday for the country's privatization program, saying the government would unload Rostelecom (RTKM.RS), keep control over the country's second-largest bank and oil company and maintain blocking stakes in a diamond miner and the state air carrier.

Mr. Ulyukaev said the state would sell its 55.6% stake in the telecom operator by 2016. He said the government is considering reducing its stake to 50% plus one share in oil giant OAO Rosneft (ROSN.RS), power company RusHydro (HYDR.RS) and VTB Bank (VTBR.RS). He said the timeline for RusHydro and VTB was to complete the sales by 2016.

The government also plans to maintain blocking stakes or 25% plus one share in diamond miner Alrosa Co. Ltd. (ROSA.RS), tanker fleet Sovcomflot, pipeline operator Transneft (TRNFP.RS) and air carrier Aeroflot-Russian Airlines (AFLT.RS). Sovcomflot's privatization is also scheduled to be completed by 2016, he said.

Write to Lukas I. Alpert at lukas.alpert@dowjones.com

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