Russian telco MTS and Uzbek authorities have agreed to suspend a case before an international arbitration tribunal, prompting speculation that the carrier’s local unit Uzdunrobita may eventually be able to recommence operations in the Central Asian…
Russian telco MTS and Uzbek authorities have agreed to suspend a case before an international arbitration tribunal, prompting speculation that the carrier’s local unit Uzdunrobita may eventually be able to recommence operations in the Central Asian nation.
The Washington-based International Centre for Settlement of Investment Disputes (ICSID) said it has issued a stay of proceedings “pursuant to the parties’ agreement”.
The case was first registered with the tribunal in November 2012 and the specific tribunal constituted in August 2013.
Local newspaper Vedomosti cited a source close to one of the disputing parties as saying proceedings have been suspended for six months in connection with Sistema owner Vladimir Evtushenkov’s negotiations with Uzbek authorities.
MTS, a subsidiary of Sistema, declined to comment.
MTS has been embroiled in a long dispute with the Uzbek authorities. The authorities suspended Uzdunrobita’s licence in August 2012, accusing it of evading taxes, and some company employees were jailed. In January 2013, the unit filed for bankruptcy after local courts ordered it to pay about US$600m in fines. Liquidation proceedings began in April of the same year. In December, Uzbek authorities transferred Uzdunrobita’s assets to state-owned Uzbektelecom for what an MTS spokesperson described at the time as “safekeeping”.
This year, MTS, VimpelCom and TeliaSonera have all come under investigation by international authorities for their activities in Uzbekistan. MTS revealed in March that it had received a request from the US’ Securities and Exchange Commission (SEC) for information “regarding investigations into the activities of unaffiliated parties” in Uzbekistan.