Tuesday, September 18, 2012

Uzbekistan court seizes MTS assets

ALMATY, Kazakhstan (AP) ? Russia's leading mobile company MTS said Tuesday that a court in Uzbekistan has ruled for the seizure of all the assets of its subsidiary in the ex-Soviet Central Asian nation.

A company spokeswoman said the decision is connected to what it says is the unlawful prosecution of four employees at the subsidiary, Uzdunrobita, on charges of embezzlement and tax evasion.

The case will further sour the investor climate in a country that has seen multiple state-led seizures of private businesses.

MTS said its employees were released from custody after their hearing Monday.

"The allegations brought against them haven't been proved during the hearings," MTS said in an emailed statement.

Uzdunrobita's assets are estimated to be worth around $700 million.

MTS pledged to pursue international legal action for damages.

The company suspended operations in mid-July at the request of Uzbek authorities, depriving around 9.5 million customers of service.

Sistema, the Moscow-based holding company that owns MTS, last week reported a $162 million second-quarter net loss partly caused by its troubles in Uzbekistan.

Uzbekistan has witnessed numerous rows with foreign investors since gaining independence in 1991.

Source: http://news.yahoo.com/uzbekistan-court-seizes-mts-assets-090331698--finance.html

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