MTS Uzdunrobita, Uzbekistan’s largest mobile operator had its licenses cancelled with charges of non-payment of taxes and license violations resulting in the cutting-off service to its 9.5 million customer.
MTS has also alleged that the Uzbek government is also attempting to seize its assets in the country and also imprisoned several of the operators local managers, which is a serious accusation and very unfortunate if true.
Now US has decided to intervene and has warned Uzbekistan of consequences shall it not handle the probe against the New York listed Russian operator with transparency.
As per reports from the Financial Times, US Commission on Security and Co-operation in Europe has communicated with the Uzbek President Islam Karimov on the matter via a letter in which they have warned the central Asian nation of “a deterioration in bilateral ties” and a “chilling effect on foreign investment” if the executives are not released and the probe is not handled transparently.
The local courts seems to be backing the regulator in its actions. The Uzbekistan tax authorities have filed a total claim of US$900 million against the Russian operator, which MTS have appealed.
MTS entered the Uzbek market way back in 2004 after buying around 74% stake for US$121 million and later moved on to acquire the remaining 26% for US$250 million and claims to have invested an additional US$750 million in assets and operations since then.
