Russia’s MTS closes down Uzbek operation

Russian operator group MTS has announced that Uzdunrobita, its wholly-owned subsidiary in Uzbekistan, has filed a petition to declare bankruptcy in the Tashkent Commercial Court.

The subsidiary has made all of its 300 to 400 staff remaining staff redundant, according to local reports. The news comes as the operator faces a criminal case brought against four of its employees in relation to tax evasion charges. A decision by the Appeals Court in November 2012 determined the total amount of fines and penalties to be paid by Uzdunrobita to be approximately $600m.

Uzdunrobita continues to defend its rights in accordance with the laws of the Republic of Uzbekistan, according to MTS.

“MTS also reserves the right to use all legal options in the international arena in order to claim damages incurred as a result of an unwarranted attack on its subsidiary in Uzbekistan,” the operator added in a statement.

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