Yury Petrov said some issues related to privatizing one of the world's largest telecoms holdings - with almost 8 mln subscribers - were still outstanding, and pre-sale arrangements could push the plans back to beyond yearend.
"We may not be able to do it [in 2006]," Petrov said.
For the company to be sold this year, the government has to make a final decision on the sale by May or June, and conduct a valuation of the share package to be sold, Petrov said.
Economics minister German Gref said earlier that the privatization could take place as early as Q3 2006.
"We will work hard to do that this year," Gref said.
Petrov said GP Morgan, Morgan Stanley and a Russian bank or company could be invited to valuate the package up for grabs.
GP Morgan earlier recommended selling 75% plus one share of Svyazinvest through an auction.
Petrov also said that the state should retain 50% plus one share in Svyazinvest, adding that Russia could have 30-40 holdings each 50% controlled by the state but run by efficient managers.
The Federal Property Fund holds 25% minus two shares in Svyazinvest. 50% plus one share belongs to the Federal Property Management Agency, and the remaining block is held by Cyprus-based Mustcom Ltd.
The holding controls 51% in Rostelecom, Russia's largest long-distance telecom services provider (RTS:RTKM), and has a minority interest (28%) in Moscow City Telephone Network (RTS:MGTS).
