Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” or the “Company” – NYSE: MBT), the leading telecommunications provider in Russia and the CIS, announces that the International Center for Settlement of the Investment Disputes (“the ICSID”), a Member of the World Bank Group, has discontinued international arbitration proceedings between MTS and the Republic of Uzbekistan following the submission of a joint application by both parties.
On July 31, 2014, MTS and the Republic of Uzbekistan signed a Settlement Agreement, the purpose of which was to resolve all disputes between the parties and enable MTS to resume operations in Uzbekistan.
In accordance with the terms of a Settlement Agreement, on September 24, 2014, a 50.01% stake in the charter capital of UMS was transferred to MTS, while a state-owned unitary enterprise Center for Radio communications, Radio and TV broadcasting established and managed by the State Committee for Communications, Development of Information Systems and Telecommunications Technologies of the Republic of Uzbekistan retained the remaining 49.99% stake. Assets, equipment and infrastructure, which were previously owned by Uzdunrobita FE LLC, a former subsidiary of MTS in Uzbekistan, were transferred to UMS.
Prior to the transfer of the stake in UMS to MTS, UMS had been granted 2G, 3G and LTE licenses, and received frequencies, numbering capacity and other permits required for the launch of operations. UMS has also received guaranties for the investment protection and return of investments in accordance with the laws of the Republic of Uzbekistan. UMS plans commercial launch of the network on December 01, 2014.
The Settlement agreement is governed by English law and provides for resolution of any disputes arising out of the Settlement agreement in the International Court of Arbitration under International Chamber of Commerce in Paris (ICC).
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For further information, please contact in Moscow:
Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems OJSC
Tel: +7 495 223 2025
Learn more about MTS. Visit the official blog of the Investor Relations Department at www.mtsgsm.com/blog/