OREANDA-NEWS. February 12, 2014. RusElectronics, part of the state corporation Rostec, can develop a data encryption system for the Russian smartphone YotaPhone, the company’s head Andrei Zverev revealed in an interview. RusElectronics is ready to develop and produce an encryption system to be used in the YotaPhone.

A phone with the ability to encrypt its contents could be in high demand in the Russian market. First of all it would be of interest to government managers and security officers. “This issue has already been brought up with the interested authorities, and I think we will figure everything out,” said Andrei Zverev, the general director of the holding company.

The company YotaDevices developed the YotaPhone smartphone. The manufacturer is known for conducing its own developments in this field.

As is also known, many federal officials already use the most technologically advanced Russian smartphone. Sergei Chemezov, the head of Rostec, personally gave the very first YotaPhone to Prime Minister Dmitry Medvedev, who also expressed his hope for a more advanced level of protection for the Russian phone than was available in foreign competitors.

On January 27 the smartphone maker announced that about 8,000 phones had been sold after 1.5 months of online sales and that about 2 million phones had been sold in retail chains.
During the interview Andrei Zverev also elaborated on negotiations for the merger between RusElectronics and the Belarusian company Integral, one option of which is an exchange of shares so that RusElectronics will own 51% of the company’s stocks. “In the event of a merger, we will shift its investment towards the financing and development of Integral’s production. We are talking about tens of millions of dollars,” said the head of RusElectronics.

Negotiations between the two companies have been ongoing for about a year. The Belarusian company Integral manufactures integrated circuits, semiconductor devices, display technologies, and and medical equipment.

RusElectronics  unites companies in the electronics industry that specialize in developing and manufacturing electronic-component basis, electronic products, electronic materials, and equipment for their production, in addition to microwave and semiconductor devices.