Russian investment bank KIT Finance has approved the sale of a 29.99% stake in long-distance operator Rostelecom, Reuters reports. State-owned Deposit Insurance Agency (DIA) will purchase the shares in a RUB50.3 billion (USD1.62 billion) deal, at RUB230 a share. Earlier this month state-controlled bank Vnesheconombank (VEB) announced that it planned to purchase 10% of Rostelecom from KIT and that the DIA would purchase the remaining shares. On 1 June 2009 CommsUpdate reported that the government had cleared the reorganisation of incumbent telecoms group Svyazinvest, Rostelecom’s controlling shareholder. The restructuring plan proposes that local fixed line networks are merged into Rostelecom, uniting the state-controlled infrastructure under the Rostelecom banner.