MAY 22 2014 (The Conway Bulletin) – MTS, the Russian mobile operator, is planning a return to Uzbekistan, two years after it quit the country after a major row with the authorities.
Vladimir Evtushenkov, the Russian billionaire whose company Sistema owns the majority state in MTS, told reporters at the St Petersburg Economic Forum that the company may re-enter Uzbekistan as early as this year.
Given MTS’s acrimonious exit from Uzbekistan, after a row over unpaid tax, Mr Evtushenkov’s statement took people by surprise.
Through its local subsidiary, MTS had been the biggest mobile provider in Uzbekistan. Its abrupt exit in 2012 had cost it 9m subscribers and losses of $1b.
But it’s a positive surprise that MTS is seriously considering a return to Uzbekistan.
Uzbekistan is the single biggest market in Central Asia, with a population of 30m, and should be a natural country of operations for a Russian mobile company.
Of course, though, as with everything in Uzbekistan, MTS’s re-entry is possibly layered with extra meaning. It may not be a coincidence that it is considering a return to Uzbekistan just as Gulnara Karimova, the eldest daughter of Uzbek leader Islam Karimov, appears to have suffered a serious setback to her power and influence.
When MTS did clash with the Uzbek authorities in 2012, the rumour mill was full of stories that the company had fallen out with Ms Karimova. That problem may now have been solved, allowing MTS to patch up its differences with the Uzbek authorities.
ENDS
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(News report from Issue No. 186, published on May 28 2014)