The Russian government has made a decision in principle to is to allow the privatisation of communication enterprises in the country, according to A S Kalmykov, the Russia Deputy Minister of Communications. The decision is to attract additional foreign investment into country’s ramshackle telephone network. There are 76 communication enterprises and 72 enterprises producing communications equipment in the Russian Federation. In accordance with requirements of the Russian Federation anti-trust committee, the state will control not more than a third of the total communication services market in the country by 1994. Kalmykov estimates $75,000m will be required to raise communication services in Russia to an internationally acceptable level. He says only 2% of existing telephone lines can be used for digital communication. And according to V Khokhlov, president of the Russian communications conglomerate Telekom, manufacturing of Siemens AG EWSD digital telephone exchange will be started soon at the joint venture enterprises that were created with participation of Telekom. Production of the EWSD equipment has been stalled for over a year due to a shortage of foreign exchange.