Rostelecom Overview and History

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Rostelecom is Russia's largest telecommunications company, with a rich history dating back to 1932. It was founded as the Ministry of Communications of the Soviet Union and was responsible for the country's postal and telecommunications services.

The company played a crucial role in the development of Russia's telecommunications infrastructure, introducing the first public telephone network in 1937. This marked the beginning of a long journey towards modernizing the country's communication systems.

In the 1960s, Rostelecom began to expand its services, introducing the first telephone exchange and laying the groundwork for the country's future telecommunications growth. By the 1980s, the company had become a major player in the Soviet telecommunications industry.

Today, Rostelecom operates as a state-owned company, providing a wide range of telecommunications services to both residential and business customers across Russia.

1992: Creation of

Rostelecom was created on December 30, 1992, by order of the State Property Committee of Russia.

The company was formed by merging 20 state-owned enterprises of long-distance and international communications, as well as Intertelecom communication equipment.

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This marked a significant milestone in the history of Rostelecom, setting the stage for its future growth and development.

Rostelecom's creation was a result of the dissolution of the Ministry of Communications of the USSR, which had previously provided telecommunications services.

By 1990, the Ministry had established a state-owned joint-stock company Sovtelekom, which obtained the rights to operate the telecommunications network of the USSR.

In 2023, Rostelecom highlighted Chinese state-backed cyberattacks as a top concern, emphasizing the importance of cybersecurity in the modern telecommunications landscape.

Ownership and Structure

Rostelecom has a diverse ownership structure, with several key stakeholders holding significant shares.

The Federal Agency for State Property Management is the largest shareholder, owning 38.2% of the company's ordinary (voting) shares as of November 2021.

JSC Telecom Investments is the second-largest shareholder, holding 20.98% of the shares.

VTB Bank and Vnesheconombank also hold significant stakes, with 8.44% and 3.96% of the shares, respectively.

Here's a breakdown of the key shareholders:

Business Operations

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Rostelecom's business operations are built around its extensive network infrastructure. The company has a presence in over 80% of Russia's regions, providing a wide range of services to its customers.

Rostelecom's network spans over 1.5 million kilometers, making it one of the largest in Russia. This extensive network enables the company to offer high-speed internet, TV, and phone services to its customers.

The company's business operations are also supported by its data centers, which provide secure and reliable storage for its customers' data. Rostelecom's data centers are equipped with state-of-the-art technology and are located in strategic locations across Russia.

Business Description

Business Description is a crucial aspect of any company. It outlines the company's purpose, goals, and objectives.

Our company aims to provide high-quality products and services to our customers. This is reflected in our mission statement, which emphasizes customer satisfaction.

The company's vision is to become a leading provider in the industry. This is a key goal that guides our business decisions and strategies.

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We have a diverse team of experts who work together to achieve our goals. This includes product development, marketing, and sales teams.

Our company values include innovation, teamwork, and customer focus. These values are essential to our success and are reflected in our daily operations.

By understanding our business description, customers can get a sense of what we do and what we stand for. This helps build trust and loyalty with our customers.

Here's an interesting read: Getting to Know Your Customers Day

Sales by Activity

Sales by Activity is a crucial aspect of any business's operations. Rostelecom, a major telecommunications company, has seen significant growth in its sales across various activities.

In 2021, Rostelecom's sales from mobile services reached 205 billion rubles. This number increased to 250 billion rubles in 2023 and further to 278 billion rubles in 2024.

Digital clusters have been another area of growth for Rostelecom. Sales from digital clusters were 89.57 billion rubles in 2021, increasing to 153 billion rubles in 2023 and 173 billion rubles in 2024.

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Interconnected operators (B2O) have also contributed to Rostelecom's revenue growth. Sales from this segment were 58.49 billion rubles in 2021, increasing to 78.05 billion rubles in 2024.

Corporate customers and governmental customers (B2B/B2G) have been a significant source of revenue for Rostelecom. Sales from this segment were 136 billion rubles in 2021, decreasing to 53.72 billion rubles in 2023.

Here's a breakdown of Rostelecom's sales by activity:

Rostelecom's sales from private users (B2C) have also been increasing, reaching 138 billion rubles in 2021, 147 billion rubles in 2023, and 158 billion rubles in 2024.

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Satellite Network

Rostelecom has built its satellite system for the Eastern region using the services of the Russian Orbital Group, which comprises 11 land stations in Siberia and the Russian Far East.

This satellite system provides reliable connectivity to remote areas, where traditional infrastructure may not be available.

Cellular Network

Rostelecom's cellular network has a rich history, with the company creating subsidiaries that operated in different regions of Russia throughout the 90s. These subsidiaries, such as NSS, Baikalvestkom, and Yeniseikom, provided mobile services to over 13.5 million subscribers across 59 regions.

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The company invested heavily in building third-generation mobile networks, with Ericsson and Huawei supplying equipment and solutions for the 3G+ network. Rostelecom's 3G+ network used HSPA+ technology, offering data transfer speeds of up to 21 MB/s.

By 2013, Rostelecom had launched its 3G+ network in several regions, including Sverdlovsk, Kurgan, and Chelyabinsk. The company also began rolling out its LTE network, launching its first part in Sochi for the 2014 Winter Olympics.

Here's a breakdown of Rostelecom's mobile network expansion:

  • 27 regions with 3G+ networks
  • 8 regions with LTE networks
  • Over 8,000 base stations planned for installation

In a strategic move, Rostelecom merged its mobile business into Tele2 Russia in 2013, creating a joint venture called T2 RTK Holding. This move allowed Rostelecom to tap into Tele2's expertise in mobile expansion and reduce risks.

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40.2% Savings on Procurement

Rostelecom saved an impressive 40.2 billion rubles on procurement in 2016, thanks to its efforts to optimize procurement processes.

The company's procurement policy, which balances centralization and decentralization of functions, played a significant role in this achievement. This approach allowed for a consistent distribution of powers to regional divisions.

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A total of 208 billion rubles was spent on purchases in 2016, with an average percentage of savings on competitive purchases reaching 25.2%. This is a testament to the company's commitment to reducing costs through market regulation of procurement activities.

The implementation of large strategic projects, such as the unification and standardization of subscriber equipment, also contributed to the company's procurement efficiency. This project had a positive impact on working capital and ensured a qualitative operational effect.

Rostelecom's Procurement Director, Evgeny Gaidukov, notes that the company's procurement policy includes an "anti-corruption clause" and an "ethical line" to increase transparency and healthy competition in trading.

Ruslan Zadinov, head of data centers at CROC, agrees that the contract price may not be significantly reduced, but Rostelecom's efforts to optimize procurement processes have still yielded impressive results.

Agreement with Megaplan on Cloud Services for Tatarstan Business

Rostelecom partnered with Megaplan to develop cloud services for corporate clients in Tatarstan. This agreement was signed on August 6, 2019.

The partnership aimed to provide solutions for business operations in Tatarstan.

B2E TechLab with Magnit

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Rostelecom and Magnit are teaming up to create a technological laboratory called B2E TechLab. This innovative initiative aims to launch new digital solutions and products in the retail sector.

The B2E TechLab is being developed to drive innovation and growth in the retail industry. By collaborating with Magnit, Rostelecom is leveraging its expertise to create cutting-edge solutions.

Rostelecom announced the creation of B2E TechLab on April 18, 2023.

Launches Production of Surveillance Cameras and Telecom Equipment

Rostelecom has expanded its operations by launching its own production of surveillance cameras and telecom equipment. This move was announced on April 13, 2023, by Mikhail Oseevsky, President of Rostelecom.

The production of these devices will be carried out by Rostelecom's subsidiaries, Elektra and RTT, in St. Petersburg and Moscow. This is a significant development in the company's business operations.

Rostelecom has been working on strategic cooperation with Huawei since 2014, and this partnership has led to the implementation of several large projects in Russia. One notable example is the longest optical data transmission network in Europe.

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The cooperation between Rostelecom and Huawei extends to various areas, including IT solutions, subscriber equipment, and Safe City systems. These solutions aim to provide advanced and competitive services to the market.

Here are some key areas of cooperation between Rostelecom and Huawei:

  • SDNNFV/IoT multimedia and entertainment services
  • IT solutions (servers, storage, data protection and processing centers, etc.)
  • Production and customization of subscriber equipment
  • Development of Safe City systems
  • Design, upgrade, and supply of active network equipment

In addition to this new production line, Rostelecom has also been working on other projects, such as laying the Kamchatka-Sakhalin-Magadan underwater network.

Hit the Web

Data leaks can be devastating for companies, and Rostelecom is no exception. Rostelecom employees' data were publicly available in June 2022, with a text file containing 109.3 thousand lines of sensitive information.

The leaked data included full names, corporate email addresses, login credentials, contact phone numbers, and job positions. This raises concerns about the security of Rostelecom's internal systems and the potential for further breaches.

Rostelecom has begun an investigation into the incident, but the company has excluded the possibility of external penetration into their infrastructure. The investigation is ongoing, and it remains to be seen how the company will address the issue.

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In addition to the data leak, Rostelecom has also experienced technical issues that have affected its services. In May 2021, a cable break in Kamchatka left most of the region without communication, including internet and mobile services.

The incident highlights the importance of maintaining robust infrastructure and backup systems to minimize the impact of technical failures. Companies like Rostelecom must prioritize investing in their infrastructure to prevent such incidents from happening in the future.

Here's a breakdown of the types of data leaked in the Rostelecom incident:

  • Full name of the employee
  • Corporate email address
  • Login to the corporate system and domain
  • Contact phone numbers
  • Characteristics of the dismissed and active employee
  • Record creation date
  • Position of the employee

Russian Railways Develops Quantum Communications

Russian Railways is taking a big step into the future by developing quantum communications with Rostelecom. They started working together in early June 2021 to create a more advanced quantum communications market in Russia.

This joint effort aims to introduce quantum technologies in various sectors, including government, finance, healthcare, transportation, and critical information infrastructure.

Russian Railways and Rostelecom expect their collaboration to contribute significantly to the development of the Russian quantum communications market.

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Controversies and Issues

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Rostelecom has been involved in a significant controversy in 2017. The company originated 50 prefixes for numerous other autonomous systems, causing Internet traffic to be routed to Rostelecom instead of its intended destinations.

The affected networks included financial institutions such as MasterCard and Visa, as well as other telecom companies and organizations. This event raised eyebrows due to the high number of financial institutions involved.

The advertisement included several more prefixes that were more specifically defined than the prefixes normally announced, making it less likely that these were unintentionally leaked.

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Controversy

Rostelecom, a state-owned Russian telecommunications company, has been involved in some controversy. In April 2017, Rostelecom originated 50 prefixes for numerous other autonomous systems, causing internet traffic to be routed to them instead of the intended organizations.

This event was notable for the high number of financial institutions affected, including MasterCard and Visa. Rostelecom's advertisement included prefixes that were more specifically defined than usual, making it less likely that the leak was unintentional.

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Rostelecom has also been involved in a data leakage incident, possibly due to a contractor's fault. In January 2024, a database containing 154,000 unique email addresses and 101,000 unique phone numbers was leaked.

The company has been transforming from a telecom service operator to a provider of digital products and services. In 2024, Rostelecom allocated 80% of its software budget to external solutions, with the remaining 20% coming from internal product development.

Here is a list of some of the notable controversies and issues surrounding Rostelecom:

  • Originating 50 prefixes for numerous other autonomous systems in April 2017
  • Data leakage incident in January 2024, possibly due to a contractor's fault
  • Rostelecom suing Russian Post for unpaid building repairs in 2024
  • Increased cost of services for passing Rostelecom traffic in January 2024 due to economic changes

Rostelecom has also been involved in a lawsuit with Russian Post over unpaid building repairs. In November 2024, the Arbitration Court of the Kaliningrad Region satisfied Rostelecom's claim to recover debts from Russian Post.

Theft of Telecom Equipment in Chelyabinsk

Theft of telecom equipment in Chelyabinsk is a serious issue that left hundreds of subscribers without communication for a while. In May 2022, a theft of telecom equipment from Rostelecom in Chelyabinsk occurred.

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The incident happened in the afternoon on one of the streets of the Metallurgical district of the city. A service engineer, Pavel Shevchenko, and his partner noticed that the door of a street distribution cabinet was broken, and an unknown man was operating near it.

The thief cut the distribution cables of the communication center, which affected the availability of services for customers. The Rostelecom report notes that hundreds of city subscribers could remain without telephony and Internet services due to the thief's actions.

The company's emergency teams responded quickly to the situation, but not before the thief tried to flee. The Rostelecom press service quoted Pavel Shevchenko, who said that the incident highlighted the importance of reliable Internet and telephony services, especially in today's remote work era.

According to Rostelecom, damaging telecommunications infrastructure can leave city residents, medical, social, and educational institutions without communication. The company emphasized that its emergency teams are always ready to respond to such situations.

If you're wondering what the consequences of damaging telecom infrastructure are, here are the details: under the law of the Russian Federation, offenders can face liability, including up to five years of imprisonment.

Nvision Fined 64M

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Rostelecom was ordered to pay NVision 64 million as a penalty.

The court decision was made as part of a protracted proceedings between the two companies.

The amount of the penalty was clarified to be 68.1 million, but after netting, Rostelecom was only required to pay 64.1 million.

NVision had also demanded to recover a penalty from Rostelecom for late payment of supplied equipment, which was also considered in the court decision.

The amount of this penalty was clarified to be 4.2 million.

The court decision was made after considering both Rostelecom's claim against its contractor and NVision's counterclaim.

The contractual relations between the two organizations were not specifically described in the court documents.

There were multiple contracts between the two companies with different dates of execution.

The exact problematic contract is not clearly identified in the public documents.

Leadership and Management

Rostelecom's leadership has seen some significant changes in recent years. The company has made strategic appointments to bolster key areas such as presidential administration, cybersecurity, and converged network services.

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The current leadership includes Mikhail Eduardovitch Oseevskiy as the CEO, who has been in the position since 2017. He is also the longest-serving member of the Board of Directors, having been appointed in 2017. Other key members of the Executive Committee include Anna Borisovna Tregubenkova as the Director of Finance/CFO, and Alexey V. Sapunov as the Chief Tech/Sci/R&D Officer.

Here is a list of the current members of the Board of Directors:

Board of Directors Composition

The Board of Directors at Rostelecom is comprised of a diverse group of individuals with varying levels of experience and expertise. As of April 2025, the leadership includes several key figures.

Anton Andreyevich Zlatopolskiy has been a Director/Board Member since 2011. Vadim Viktorovich Semenov, on the other hand, has been the Chairman since 2013. His tenure as Chairman is a testament to his leadership skills and ability to guide the company.

The Board of Directors is made up of nine members, each with their own unique strengths and qualifications. Here is a breakdown of the current composition of the Board of Directors:

The age range of the Board of Directors members is quite diverse, spanning from 48 to 69 years old. This diversity in age and experience is beneficial for the company, as it brings different perspectives and ideas to the table.

Recent Leadership Changes

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Mikhail Eduardovitch Oseevskiy has been CEO since 2017.

Dariy Khalitov was appointed senior vice president for information technology at PJSC Rostelecom in May 2024, replacing Kirill Menshov who left the company.

Yevgeny Miroshnikov became vice president of Rostelecom in August 2024.

David Martirosov was appointed senior vice president for commercial IT products at Rostelecom in August 2024, leading the newly formed commercial IT cluster.

Vladimir Shadrin, a top manager at Rostelecom, was arrested on November 19, 2024, on embezzlement charges.

Here are some key leadership appointments at Rostelecom:

Financials and Funding

Rostelecom has explored various financial options to fund its projects. In 2015, the company applied for a soft loan of 10 billion rubles under the project financing mechanism.

The loan was part of a larger program, which included three approved loans as of March 17, 2015. These loans were for Tele2 (16 billion rubles) and two poultry farms (13.2 billion rubles).

Rostelecom plans to use the funds to refinance its existing debt and support its projects, including the construction of a fiber-optic communication line. The company aims to expand its capabilities and increase efficiency.

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The project financing mechanism allows for loans of up to 20 billion rubles, with a limit of 80% borrowed financing within the project. A guarantee of Russia is possible, covering up to 25% of the loan amount.

Here are some key details about Rostelecom's funding options:

  • Loan amount: up to 20 billion rubles
  • Borrowed financing limit: 80% of the project's volume
  • Guarantee of Russia: up to 25% of the loan amount

Income Statement and Estimates

The income statement is a crucial document that gives us a snapshot of a company's financial performance over a specific period. It's like a report card for businesses.

The income statement includes key metrics such as stock market performance, equities, and stock prices. For example, RTKM Stock is a notable one to look at.

Company Rostelecom, a Russian telecommunications company, has a stock market presence that's worth noting. APAC is another significant region to consider when evaluating a company's financials.

Bond Placement of 10

Rostelecom placed exchange-traded bonds in the amount of 10 billion rubles, with a coupon rate of 14.4% per annum.

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The bonds will have a face value of 1,000 rubles each and a term of circulation of 2 years from the date of placement.

Settlements on transactions will be held on the Moscow Exchange on April 3, 2024.

The funds from the placement will go to refinance existing debt and will not lead to an increase in the debt burden.

Gazprombank was the organizer of the bond placement.

The project aims to support small and medium-sized enterprises by providing them with financing to expand their capabilities and increase efficiency.

This is part of the national project for the development of SMEs, supervised by First Deputy Prime Minister Andrei Belousov.

Buyback of Minority Shares

Rostelecom's Board of Directors set the redemption price for minority shares at 136 rubles for one ordinary share and 95 rubles for one preferred share, significantly higher than market quotes.

This price is higher than the current market value of 87 rubles for an ordinary share and 70 rubles for a preferred share. The Board of Directors must follow the law on joint-stock companies, which allows shareholders to demand redemption of their shares if they didn't vote in favor of the company's reorganization.

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The law also limits the amount Rostelecom can allocate for buying back shares to no more than 10% of the company's net assets, which is approximately 30 billion rubles.

If all minority shareholders demand redemption, the company will only be able to satisfy 18% of the total number of applications due to the 30 billion rubles limit.

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Government and Regulation

Rostelecom has had its fair share of technical issues, with a notable incident occurring on March 10, 2021, when a failure led to problems accessing the internet and the sites of some Russian authorities stopping work. The affected sites included the official online resources of the president, governments, and the State Dumas and Federation Council.

The problems were reported by residents of several cities in Russia, including Moscow, St. Petersburg, and Novosibirsk. Rostelecom attributed the issues to a technical problem related to the operation of routers, not to any actions by the department Roskomnadzor.

The Kremlin, however, didn't seem to experience any issues with their website, with the press secretary stating that everything was working normally. This incident highlights the importance of robust infrastructure and technical support for critical services like Rostelecom.

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Roskomnadzor Creates Leak Protocol

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Rostelecom, Russia's largest telecom operator, faced an administrative protocol from Roskomnadzor for data leaks. This happened on July 22, 2022.

The protocol was drawn up under Part 1 of Art. 13.11 of the Administrative Code, which deals with violations of the law in the field of personal data. The maximum fine for a single violation is 100,000 rubles, and for a repeated one, it's up to 300,000 rubles.

During the audit, Roskomnadzor found violations of the law in the circulation of personal data of customers. The protocol was submitted to the court, but the specific court is not specified.

Rostelecom's Senior Vice President for Information Technology, Kirill Menshov, had discussed the company's approach to data protection in an interview with TAdviser in May 2020.

Russian Government Site Shutdown Fails

On March 10, 2021, Rostelecom had a failure, resulting in problems accessing the Internet and sites of some Russian authorities stopping work.

The official online resources of the president, governments, and State Dumas were not available.

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According to the Downdetector service, 92% of users complained about problems with the Internet, while 5% noted failures of all services of the company.

Rostelecom stressed that the failures were not related to the work of Roskomnadzor, but rather a technical problem caused by software overload.

The problems were reported by residents of Moscow, St. Petersburg, Stavropol, Novosibirsk, Saratov, Kazan, Krasnodar, Pyatigorsk, and other cities of Russia.

The Kremlin claimed that everything was working fine, despite reports of malfunctions.

Here's a breakdown of the problems reported by Downdetector:

Nvision Takes Debts For 112 Project

Rostelecom will have to pay NVision Group 32.8 million rubles for debt under a contract for 18.2 million rubles and a penalty of 14.6 million rubles.

The debt stems from a contract concluded on December 23, 2013, between Rostelecom and NVision Group, under which NVision was to automate the facilities of the first stage of the emergency call system at the single number "112".

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NVision fulfilled its obligations in full, carrying out work for 126.1 million rubles and supplying software for 425 thousand rubles. However, Rostelecom only paid the company 108.3 million rubles.

This was the reason for the lawsuit that NVision filed on December 1, 2016, which led to the court decision in favor of NVision.

On March 13, 2025, Prime Minister Mikhail Mishustin made a significant move by signing an order that appointed Rostelecom as the sole executor of the state automated system of legal statistics.

Rostelecom will be responsible for creating and developing a component of the state automated system of legal statistics, known as GAS PS.

The Ministry of Digital Development of the Russian Federation will conduct the corresponding procurements for this project.

Partnerships and Collaborations

Rostelecom has established a Center for the Management of Technological Partnerships, led by Eldar Gayfutdinov, to coordinate state interaction and promote Rostelecom as a coordination center for Russian telecommunications and IT development.

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The center is involved in various projects, including quantum communications, import substitution, and trusted services. It also participates in the development of regulatory legal acts and ensures technological independence of the Russian Federation's infrastructure.

Rostelecom has signed agreements with several partners, including Tomsk State University (TSU), Innopolis University, InfraOne, Megaplan, Huawei, and Yandex. These collaborations aim to develop specialized programs for IT personnel, create joint educational programs for engineers, and attract funding for digital infrastructure projects.

Here are some of the key areas of cooperation:

  • Quantum communications and import substitu

Training of highly qualified IT personnel;

Development of specialized programs for additional and professional education;

Co-financing of investment projects for digital infrastructure;

Development of cloud services for corporate clients;

Joint development of innovative solutions in IT and telecommunications;

Creation of cloud services for the public and corporate sectors.

Agreement on IT Personnel Training

Rostelecom has made significant strides in training highly qualified IT personnel through partnerships with top universities. One such agreement was signed with Tomsk State University (TSU) on June 6, 2024.

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The cooperation aims to develop specialized programs for additional and professional education. These programs will help bridge the gap in skilled IT professionals.

Rostelecom's Vice President for IT Operation and Infrastructure, David Martirosov, and TSU's Rector, Eduard Galazhinsky, signed the agreement. This collaboration will undoubtedly yield positive results.

Rostelecom has also partnered with Innopolis University to create joint educational programs for the training of new generation engineers.

Huawei Cooperation Agreement

Rostelecom and Huawei announced the ratification of their cooperation agreement on June 25, 2016, aiming to jointly develop and implement innovative solutions in IT and telecommunications in Russia.

The agreement covers several areas, including SDN/NFV, IoT multimedia and entertainment services, IT solutions for data centers, and production of subscriber equipment based on Rostelecom subsidiaries' production facilities.

Rostelecom and Huawei are working on several large projects in Russia, including the longest optical data transmission network in Europe, which was implemented before the cooperation agreement was signed in 2016.

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The companies are also laying the Kamchatka-Sakhalin-Magadan underwater network as of June 2016.

The goal of their cooperation is to introduce advanced and competitive solutions in Rostelecom's network, making affordable modern communication services available on the market.

Some of the key areas of cooperation include:

  • SDN/NFV, IoT multimedia and entertainment services
  • IT solutions for data centers
  • Production and customization of subscriber equipment
  • Development of Safe City system solutions
  • Design, upgrade, and supply of active network equipment and systems

Yandex to Create Cloud Services for Public Sector

Rostelecom and Yandex agreed to jointly create cloud services for the public and corporate sectors.

In early June 2021, Rostelecom and Yandex signed a public agreement to make this collaboration happen. The agreement was signed by Vladimir Kiriyenko, the first vice-president of Rostelecom, and Tigran Khudaverdyan, the managing director of the Yandex group of companies.

Investment and Growth

Rostelecom has been backed by several prominent investors over the years, including a 75% investment.

The company has also partnered with InfraOne to co-finance digital infrastructure projects, which are implemented on the basis of concessions, public-private partnerships and project financing.

Rostelecom announced the launch of a new venture capital fund, which will focus on supporting domestic Internet services, digital platforms, and industrial software developers.

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This fund will invest in companies that have passed through industrial centers of competence in the field of import substitution of software, and will focus on those companies that have already "groped" their niches.

The fund will invest in such companies both independently and in cooperation with other major players, and its size of several billion rubles is quite significant for Russian venture capital funds.

Here are some key statistics about the new venture capital fund:

  • Volume: 8 billion rubles
  • Focus: Domestic Internet services, digital platforms, and industrial software developers
  • Investment period: Next 3 years
  • Size: Significant for Russian venture capital funds

The construction of the West-East main canal is also an ambitious project, with a planned completion over the next three years.

Venture Capital Fund Setup

PJSC Rostelecom has announced the launch of a new venture capital fund with an impressive volume of 8 billion rubles. This fund will focus on supporting domestic Internet services, digital platforms, and industrial software developers.

The fund will invest in companies that have passed through industrial centers of competence in the field of import substitution of software. It will also invest in cooperation with other major players.

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Rostelecom's First Vice President and Financial Director, Sergey Anokhin, explained that this fund will be in addition to their existing fund and investment plans for the development of a new digital business.

The size of the fund is quite significant for Russian venture capital funds, with experts considering 3 billion rubles a decent amount for a Russian fund.

Agreement on Co-Financing Investment Projects

PJSC Rostelecom has joined forces with LLC First Infrastructure Company (InfraOne) to attract funding to the sowing stage of digital infrastructure projects.

This partnership aims to implement projects based on concessions, public-private partnerships, and project financing. The goal is to secure funding for these projects, which can have a significant impact on the development of digital infrastructure in Russia.

Rostelecom has a strong track record of working with investors, with 75% backing from prominent investors over the years.

The company has also been appointed as the sole executor of several high-profile projects, including the modernization of the state information system of compulsory health insurance (GIS compulsory medical insurance).

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News and Events

Credit: youtube.com, Russia's Rostelecom Underwater Cable Damaged in Baltic Sea

Rostelecom's official website is a great resource for staying up-to-date on the latest news and events.

The latest news about Rostelecom can be found on its official website, which was updated as recently as May 7, 2024.

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Reorganization and Restructuring

In 2013, Rostelecom underwent a significant reorganization, which involved the creation of a new holding company structure.

Rostelecom's shares were split into two classes, with the majority stake held by the Russian government.

The company's management structure was also revamped, with a new CEO and board of directors appointed.

Rostelecom's reorganization aimed to improve the company's efficiency and competitiveness.

The company's debt burden was reduced through a combination of debt-for-equity swaps and asset sales.

Rostelecom's restructuring efforts were supported by the Russian government, which provided financial assistance to the company.

The reorganization and restructuring efforts enabled Rostelecom to focus on its core business and improve its financial performance.

Rostelecom's revenue and profitability improved significantly after the reorganization, with the company reporting steady growth in recent years.

The company's market share in the Russian telecommunications market also increased following the reorganization.

Government Involvement

Credit: youtube.com, Ep 2: Collaboration App Networks Have Particularly Bad Week, Rostelecom BGP Bungle Again

Rostelecom has a significant role in the government sector, as evident from a decree signed by Prime Minister Mikhail Mishustin. He appointed Rostelecom as the sole contractor for IT services in a government building in Moscow City.

This appointment was made official through a document published on February 7, 2024.

Disruptions and Outages

Rostelecom has experienced several disruptions and outages over the years. A notable incident occurred in the Baltic Sea, where an underwater Internet cable of Rostelecom was damaged due to an "external impact", leaving the Kaliningrad region without connection to the main territory of Russia.

In 2020, Yakutia was left without the Internet due to a cut main cable of Rostelecom, which was damaged 8 km from the city of Aldan. The incident occurred at 14:30 Yakut time, and the connection was restored at 18:30 the same day.

Rostelecom's main communication line was damaged by firearms, and metal particles were found in the optical cable. Cartridges were also found near the scene, and the case was sent to the police.

Close-up view of intertwined black cables and connectors in an outdoor telecom setup.
Credit: pexels.com, Close-up view of intertwined black cables and connectors in an outdoor telecom setup.

Most of Kamchatka was left without communication due to an accident at Rostelecom on May 31, 2021. The cable break was caused by a third-party organization during excavation work, and Rostelecom employees found a cable damage site and a dug trench.

The incident had significant consequences, including problems with telephone communications, the Internet, and bank card payment terminals. Some subscribers switched to backup satellite channels, but landline phones and mobile phones with a call to 112 came to the rescue in emergency cases.

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Gartner Named a Global Best

Rostelecom's IT management model was called one of the best in the world by Gartner, a leading analytical company.

This recognition came in July 2020, when Rostelecom announced the news on its own website.

The company's project to transform its IT management model was a groundbreaking practice, especially for Russian companies.

Rostelecom switched from a matrix to a "flat" control model in IT, called Karma Framework, which is based on self-organizing teams.

White Concrete Building
Credit: pexels.com, White Concrete Building

Each employee in these teams understands their role, area of responsibility, and strategic purpose of work.

This approach allows Rostelecom to find fast and effective IT solutions for any challenge, especially in a rapidly changing market with a wide product line.

The transformation was not just a change in management style, but a response to customer expectations and market challenges.

Kirill Menshov, senior vice president for information technology at Rostelecom, said the company's goal was to develop a variety of practices and self-organization of teams to solve key business problems.

The recognition from Gartner gave Rostelecom confidence in its chosen direction and highlighted the professionalism of its large IT team.

Frequently Asked Questions

Where is Rostelecom?

Rostelecom is headquartered in Moscow, Russia. Learn more about Rostelecom's global presence and services.

Sean Dooley

Lead Writer

Sean Dooley is a seasoned writer with a passion for crafting engaging content. With a strong background in research and analysis, Sean has developed a keen eye for detail and a talent for distilling complex information into clear, concise language. Sean's portfolio includes a wide range of articles on topics such as accounting services, where he has demonstrated a deep understanding of financial concepts and a ability to communicate them effectively to diverse audiences.

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