The deal will see RDIF and Deutsche Bank each take a 1.225 per cent stake in the company at a price of $3.37 per share, said Russian newspaper Kommersant.
RDIF and Deutsche Bank will have an option to sell the shares back to Rostelecom at the purchase price and a 1.5 per cent interest if its share price falls, while the telecom group has the right to reacquire its shares if its price climbs 30 per cent.
The terms of the deal are expected to be confirmed at a board meeting today.
In July it was reported that RDIF planned to join Deutsche Bank to purchase a stake in Rostelecom for $250m.
Earlier in 2013 RDIF director Sean Glodek told AltAssets RDIF was preparing for its busiest year on record in an attempt to put Russia on the private equity map.
The fund, which was set up a year and a half ago, plans to allocate $2bn this year and anticipates some major private equity firms will join it in deals expected to range from$100m to more than $1bn.
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