MOSCOW — The Russian government has approved in principle a draft decree on the privatization of Svyazinvest, the country’s national fixed-line telephone operator, and sent the document to the presidential administration, a source in the government told RBC.

He said the government was satisfied with the draft decree. As we previously reported, the economy ministry had sent documents on the Svyazinvest privatization to the government after agreeing with the interior ministry and the federal guards service.

Valery Nazarov, head of Russia’s state property agency, had said the Svyazinvest privatization could take place before the end of this year, but economy minister German Gref said the auction was more likely to take place at the beginning of next year.

Svyazinvest has a controlling interest in seven large interregional companies: CenterTelecom, North-West Telecom, VolgaTelecom, Southern Telecommunications Company, Uralsvyazinform, Sibirtelecom and Dalsvyaz, as well as in the Central Telegraph, Dagsvyazinform and Rostelecom, Russia’s largest long-distance telecommunications company.

Svyazinvest also holds a 28 percent stake in Moscow City Telephone Network, a 37 percent stake in Kostroma City Telephone Network and a 38 percent stake in RusLizingSvyaz. The group has 1.22 percent of SvyazBank, 12.09 percent of Registrator Svyaz, and 0.5 percent of RTKcomm.RU. It is the founder of Mobile Telecommunications, StartCom and RusLizingSvyaz.

The government has 75 percent plus one share in Svyazinvest, and the rest is controlled by Cyprus-based Mustcom Ltd. Svyazinvest’s net profit last year was RUR 17.5 billion.