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UPDATE 1-Russian assets buoyed by oil rally

* MICEX and RTS turn positive on oil gains

* Megafon IPO seen impacting Russian telecom stocks

* Rouble flat against dollar, gains against euro

(Updates prices, adds details and trader comment)

By Jason Bush and Maya Dyakina

MOSCOW, Oct 9 (Reuters) - Russian equities turned positive on Tuesday, supported by an upturn in oil prices, while telecoms stocks edged higher following a $2 billion IPO announcement by mobile operator Megafon.

At 1416 GMT the rouble-denominated MICEX index

was up 0.4 percent at 1,479.56 points, while the dollar-denominated RTS rose 0.6 percent to 1,500.97.

"One can only hope that MICEX overcomes 1,490 points in the coming days, then we can buy up more shares and wait for the next stop at 1,550 points," said Evgeniy Volkov, a trader at Probusinessbank, adding that oil prices remain supportive for Russia's stocks.

Assets tracked the oil price upwards, with Brent

rising towards $113,8 on the back of tensions in the Middle East.

Analysts said that Russia's markets are mainly being driven by international developments, with attention focused on Tuesday on German chancellor Angela Merkel's visit to Greece, and the start of the U.S. corporate earnings season.

Both are important drivers of global appetite for risk, and of oil prices.

There was confirmation of activity returning to Russia's capital market on Tuesday, with an announcement by Megafon, its second largest mobile phone operator, of an IPO in London expected to be worth around $2 billion.

Analysts at Alfa Bank wrote that they expected the placement to put downward pressure on fellow mobile operators, as investors sell shares in these companies in order to buy Megafon stock.

New York-listed Vimpelcom

lost 0.6 percent, however, shares in Moscow-listed MTS

were up 1.2 percent and Rostelecom

rose 2.4 percent.

The rouble rose against the euro, which has weakened on the back of fresh concerns about Spain's debts, but was little changed against the dollar.

At 1416 GMT the rouble had gained one cent against the dollar to 31.12

, and 0.5 percent to 40.22 against the euro

,

leaving it 0.3 percent firmer at 35.21 against the euro-dollar currency basket

.

The yield on Russia's benchmark 2030 Eurobond

was also little changed at 2.91 on Tuesday, compared with 2.90 the previous day.

Russia's Finance Ministry announced earlier in the day, that it would offer up to 35 billion roubles in 10-year OFZ treasury bonds

on

Wednesday, at an indicated yield of 7.78-7.83 percent.

Russian Markets Latest Net % % Change Change Change on year STOCKS MICEX 1479,56 5,95 0,40 5,51 RTS 1500,97 8,46 0,57 8,62 London ADRs

865,55 2,00 0,23 11,19

Emrg Mkt Indx

999,01 1,08 0,11 9,02

MSCI Russia

801,94 2,48 0,31 8,85

Sberbank

92,94 0,34 0,37 17,85 VTB 0,05 0,00 0,15 -6,95

Gazprom

158,11 -0,79 -0,50 -7,70

LUKOIL

1958,00 24,40 1,26 15,01

Rostelecom

137,13 3,33 2,49 -9,78

Dollar/Rouble

31,12 -0,04 -0,13 -3,20

Euro/Rouble

40,22 -0,21 -0,51 -3,65

Rouble basket

35,21 -0,11 -0,32 -3,43

DEBT Bid Ask %Rtn Coupon Russia 10-yr bond 7,66 7,65 0,11 7,60 MONEY MARKET Bid Ask Close Overnight rate 5,89 6,39 5,44 TABLE FROM POWER PLUS PRO

All data taken from Reuters at 1416 GMT

(Additional reporting by Zlata Garasyuta; Editing by Catherine Evans)

((maya.dyakina@thomsonreuters.com)(Tel: +7 495 775 1242))

Keywords: RUSSIA MARKETS/