Russia’s Rostelecom has hired Morgan Stanley to help it in its search for online video assets.

As a result, reports Vedomosti, a deal between Rostelecom and Gazprom Media is now unlikely to take place.

Last autumn the two parties agreed to establish a joint venture to help Rostelecom acquire RuTube, and Zoombie for a total of R5.5 billion (€70.6 million).

Rostelecom’s cooperation with Morgan Stanley must be signed off by February 20 and will last until the end of the year.

Gazprom Media recently had a change in leadership and its new strategy has still to be clarified.