Russia’s largest mobile operator, MTS, has announced that its subsidiary in Uzbekistan has filed for bankruptcy.
As TelecomFinance previously reported, MTS Uzbekistan had its telecoms licence revoked earlier this year after the country’s…
Russia’s largest mobile operator, MTS, has announced that its subsidiary in Uzbekistan has filed for bankruptcy.
As TelecomFinance previously reported, MTS Uzbekistan had its telecoms licence revoked earlier this year after the country’s government accused it, among other things, of tax evasion. On 17 September, the government seized all of MTS’ assets in the country.
In a statement today, MTS said that its subsidiary was legally obliged to liquidate following the 17 September court decision and the 8 November appeals court decision, which fined the telco US$600m.
“In accordance with the court verdict of the Appeals Court of the Tashkent City Criminal Court from 8 November 2012, funds in the amount of approximately US$150m have already been recovered by law enforcement agencies from [subsidiary] Uzdunrobita’s bank accounts,” said the statement.
MTS added that it had recorded an impairment of assets in Uzbekistan of US$579m for the three months of operations ending 30 June 2012.
“MTS has provided for tax, anti-monopoly and other liabilities that management believes are probable to result from the various legal proceedings currently ongoing in Uzbekistan in the amount of US$500m,” said the statement.
The Russian telco group said it reserves the right to go through the international courts to claim back damages incurred “as a result of an unwarranted attack on its subsidiary in Uzbekistan.”
MTS is not the only telco which has experienced issues in Uzbekistan. As TelecomFinance reported earlier this month, Sweden’s TeliaSonera has been contesting corruption and bribery allegations in the country.
