Tele2, the Nordic telecommunications company recently announced that it would be selling its Russian subsidiary to VTB Group bank. The sale is reportedly worth US$3.5 billion and would help ease the pressure brought about by increased competition.

The company was long to be expected to sell its interests as it did not have the necessary 3G or 4G license. Without this, the growth prospects of the firm were severely limited.

In a statement, VTB Group President and Chairman Andrey Kostin said, "We believe that Tele2 Russia is a good financial investment which will be growing faster than the market. VTB plans to ccoperate with financial and strategic partners in order to further develop it's investment."

There was no mention though on how a private equity investor such as VTB wants to retain Tele2 as an investment option. The bank did not comment when sought for one as to its future plans for the business.