ROSYY PJSC Rostelecom (CE)

By Olga Razumovskaya

MOSCOW--Russia's second-largest lender VTB Bank (VTBR.RS) is not planning to sell Tele2 Russia to Russian state-controlled telecoms operator Rostelecom (RTKM.RS) and will seek private investors in the next three to four months instead, the bank's deputy CEO Yuri Soliviev told Interfax Thursday.

"We are negotiating with several investors, how many of them there are in the end will depend on the structure of the deal," Mr. Soloviev said.

"We will remain a party that will control this investment," he added.

It had been rumored actively on the market that Tele2 Russia would be sold off to Rostelecom.

Mr. Soloviev also confirmed that Tele2 Russia will be cooperating with Rostelecom on the mobile virtual network operator (MVNO) model.

Write to Olga Razumovskaya olga.razumovskaya@dowjones.com