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Russia's MTS Seeks Arbitration In Tashkent Mobile War

Uzbeks line up for new mobile numbers after the closure of the MTS operator earlier this year.
Russian mobile phone operator MTS says it is planning international legal action against Uzbekistan after a Tashkent court ordered the nationalization of its subsidiary in a tax dispute.

In a statement issued on September 17, the company said Tashkent's move against MTS was illegal, and called the case "impartial" and that it aimed "to take over the assets and business of MTS in Uzbekistan."

MTS issued the statement right after the Tashkent Criminal Court sentenced four managers of its subsidiary in Uzbekistan to three-year suspended sentences and confiscated the subsidiary's property in favor of the state.

Uzbekistan has hit the MTS subsidiary with a massive tax claim and a court last month cancelled all its operating licenses, saying it had been operating illegally and evading taxes.

Based on reporting by Interfax and AFP