MTS Being Investigated by US Justice Department, SEC Over Uzbekistan Operations

By Olga Razumovskaya

MOSCOW--Russia's biggest telecommunications company, Mobile TeleSystems (MBT), is being investigated by the U.S. Department of Justice over its former operations in Uzbekistan, the company said in a filing to the U.S. Securities and Exchange Commission on Wednesday.

The investigation is running in parallel to an SEC probe into MTS's operations in Uzbekistan, the company also said.

It said it intends to fully cooperate with both investigations.

The announcement comes a day after another major telecommunications player that operates in Russia, Amsterdam-based VimpelCom Ltd. (VIP), said it is being investigated by the U.S. Department of Justice over its operations in Uzbekistan where the company has a subsidiary. VimpelCom is also being investigated by the SEC and Dutch public prosecutors over its operations in Uzbekistan.

MTS stopped operating in Uzbekistan about a year ago and filed for bankruptcy in the country. At the time, analysts said the risks of doing business in Uzbekistan were increasing.

Write to Olga Razumovskaya at [e-mail]

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