AFK Sistema, the holding firm of billionaire Vladimir Evtushenkov, is mulling a potential stake acquisition in Latvian telecommunications firm Lattelecom SIA. The potential deal is geared to facilitate Sistema's expansion beyond Russia, according to Bloomberg.

The Russian company said in an e-mailed response to queries: "We are looking at this asset, while no decision is taken. As an investment company, we are evaluating different opportunities on the market, including this one."

Baltic Times reported that Latvian Economy Minister Daniels Pavluts received a document from Lattelecom expressing interest for the latter's shares. The state currently holds a 51% stake in Sistema. The rest is owned by Swedish firm TeliaSonera AB, the report detailed.

Sistema controls OAO Mobile TeleSystems, the biggest mobile operator in Russia, which is also the operator in other former Soviet republics. In July, Evtushenkov announced his intention to expand his telecom business in Russia and in other countries, said the report.

Based on its yearly report, Lattelecom's 2012 revenue reached $286 million, Bloomberg reported.