Indian troubles to lead to USD1bn writedown for Sistema

20 Apr 2012

Russia’s Sistema will take a writedown of approximately USD1 billion as a result of developments on the subcontinent, reports Reuters, citing sources close to Sistema. The writedown is a non-cash item that will be recognised in Sistema’s fourth-quarter results, eroding earnings, one of the sources said. Sistema’s wireless arm in India, Sistema Shyam TeleServices Ltd (SSTL), which operates under the ‘MTS India’ brand, was one of the cellcos affected by the Supreme Court’s cancellation of 122 concessions in February this year. As previously reported by CommsUpdate, Sistema has threatened the Indian government with international arbitration over the revocation, accusing the country’s authorities of breaking the terms of the Russia-India Bilateral Investment Treaty (BIT).

India, Russia, Sistema Shyam TeleServices (SSTL, MTS India)