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 higherfollowing a $2 billion IPO announcement by mobile operator Megafon.

At 1416 GMT the rouble-denominated MICEX index

was up 0.4 percent at1,479.56 points, while the dollar-denominated RTSrose 0.6 percent to1,500.97.

"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," saidEvgeniy Volkov, a trader at Probusinessbank, adding that oil prices remainsupportive 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 internationaldevelopments, with attention focused on Tuesday on German chancellor AngelaMerkel'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 onTuesday, with an announcement by Megafon, its second largest mobile phoneoperator, of an IPO in London expected to be worth around $2 billion.

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

New York-listed Vimpelcom

lost 0.6 percent, however, shares inMoscow-listed MTS

were up 1.2 percent and Rostelecom

rose2.4 percent.

The rouble rose against the euro, which has weakened on the back of freshconcerns 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 littlechanged at 2.91 on Tuesday, compared with 2.90 the previous day.

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


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

Russian Markets Latest Net % % ChangeChange Change on yearSTOCKSMICEX1479,56 5,95 0,40 5,51RTS1500,97 8,46 0,57 8,62London 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


92,94 0,34 0,37 17,85VTB0,05 0,00 0,15 -6,95


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


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


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


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


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

Rouble basket

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

DEBT Bid Ask %Rtn CouponRussia 10-yr bond7,66 7,65 0,11 7,60MONEY MARKET Bid Ask CloseOvernight rate5,89 6,39 5,44TABLE 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))