The Financial Times reports that the Algerian government is still looking to nationalise Djezzy, the local unit of operator Orascom Telecom, despite Orascom’s recently-announced plan to merge with Russia’s VimpelCom to create a top-five global mobile operator. According to reports, the Algerian authorities have stated that “any change in the shareholding of Orascom Telecom….does not undermine commitments already made to give Orascom Telecom Algeria to the Algerian state.” Djezzy is seen as something of a jewel in the Orascom crown, and the fact that it could be forced to sell the unit for an unfavourable price could impact the VimpelCom deal.

Reuters says that now that a VimpelCom-Orascom agreement has been signed, the Russian group will be able to play a central role in negotiations with the Algerian authorities. It was suggested elsewhere that a change of faces around the negotiating table may ease the process somewhat, bringing an end to the impasse between Algeria and Orascom. It was also reported that Dmitry Medvedev, the president of Russia, “might” discuss the issue on a planned visit to Algeria, with Alexander Izosimov, CEO of VimpelCom, stating that the probability of a resolution is “very high.” Izosomov said that while Djezzy is an “interesting and attractive” asset, it is not “critical” to the deal.