An Uzbek criminal court has issued a ruling entitling the state to confiscate all assets belonging to Russian telecoms group MTS’ local unit Uzdunrobita in connection with an earlier judgment against four of the company’s managers. The court has…
An Uzbek criminal court has issued a ruling entitling the state to confiscate all assets belonging to Russian telecoms group MTS’ local unit Uzdunrobita in connection with an earlier judgment against four of the company’s managers. The court has valued the assets at about US$700m.
MTS claims the Tashkent Criminal Court ruling is unjust arguing that evidence presented at the trial was obtained illegally and Uzdunrobita was not allowed to defend itself.
“Previously, Uzbek law enforcement bodies had arrested all of Uzdunrobita’s assets, including cash held in local bank accounts,” MTS said in a statement. “Uzdunrobita was denied the right to defend its rights and legitimate interests and to engage as a legal party to the trial against its employees, which resulted in the confiscation of the company’s assets.”
MTS, controlled by Russian conglomerate Sistema, claims Uzbek authorities violated local and international laws in the pre-trail period in order to “seize and appropriate” its business in the country.
The court revoked Uzdunrobita’s operating licence last month, leading the parent company to write off US$1.1bn of the local unit’s assets.
The months-long conflict between the Uzbek authorities and MTS began when the former accused the latter of tax evasion, among other things – allegations the company has always denied. Several Uzdunrobita employees have since been jailed.
In its most recent statement, MTS said it reserves the right to take legal action against officials involved in unlawful actions against the company and claim resulting damages.
