Russian mobile operator MTS said it understands Uzbek authorities have asked creditors to buy the assets of its beleaguered local unit, having failed to dispose of them in two auctions.
If this does not work out, Uzbek authorities may transfer the unit,…
Russian mobile operator MTS said it understands Uzbek authorities have asked creditors to buy the assets of its beleaguered local unit, having failed to dispose of them in two auctions.
If this does not work out, Uzbek authorities may transfer the unit, known as Uzdunrobita, to local authorities. MTS, controlled by Russian conglomerate Sistema, has been embroiled in a long dispute with the Uzbek government.
Last August, the authorities revoked Uzdunrobita’s operating licence in connection with a dispute over tax evasion, which led to the imprisonment of company managers. MTS said the Uzbek unit was forced to file for voluntary bankruptcy in January after local courts ordered it to pay about US$600m in fines.
In April, Uzbekistan’s Tashkent Commercial Court declared Uzdunrobita bankrupt and begun liquidation procedures. Local authorities held two auctions in July to sell the company’s assets but received no bids.
MTS has continued to contend that the Uzbek authorities’ actions are illegal.
In its statement yesterday, the Moscow-based company reiterated that “the claims of the Uzbek authorities and actions in Uzbekistan, which resulted in the initiation of bankruptcy proceedings and attempts to sell Uzdunrobita’s assets, have no legal or factual basis”.
MTS said it reserves the right to take legal action to protect its rights and investments, adding that it will seek to fully recover damages from those who have deprived it of assets and business in Uzbekistan.
MTS has a case pending against the Republic of Uzbekistan in the Washington-based International Centre for Settlement of Investment Disputes, part of the World Bank Group.
Uzdunrobita claimed to have 9.5 million subscribers at the end of Q1 2012, equal to a 38% market share, but was forced out of the market later in the year.
