Sistema India telecom unit worth $3.5 bln -source

* Russia govt to buy 20 pct stake
* Fin min says hopes for deal before end-2009
(Adds finance minister comment)
MOSCOW, Sept 23 (Reuters) - Indian mobile telecoms group Sistema Shyam TeleServices, a unit of Russia's Sistema (SSAq.L), was valued at $3.5 billion by an independent appraiser, a source familiar with the valuation told Reuters on Wednesday.
The Russian government has allocated 23.7 billion roubles ($780.4 million) in its 2009 budget to buy a stake of around 20 percent in the company. [ID:nLI351079]
"Sistema Shyam is valued by (appraiser) Avers at around $3.5 billion," the source told Reuters on condition of anonymity.
Russian Finance Minister Alexei Kudrin said the government was completing the appraisal and the decision-making process regarding the acquisition of Shyam shares. "We hope that we will have time to make this deal this year," he told reporters.
The valuation would put a price of some $700 million on a 20 percent stake. Earlier Vedomosti business daily said the state may buy 20 percent of Sistema Shyam TeleServices for $680 million.
Sistema Shyam operates in six of India's 22 telecoms zones and has licences for the remainder. Sistema owns 73.71 percent in the company and India's Shyam Group has 23.79 percent.
Avers and Sistema both declined comment. (Reporting by Anastasia Teterevleva; Writing by Dmitry Sergeyev and Maria Kiselyova; Editing by David Holmes) ($1=30.37 Rouble)