Saturday, 3 November 2012

Sistema issue: India hopes agreeable solution


In reply to Russia’s comment to take the cancellation of 2G license of Sistema for international arbitration if it is not resolved in Indian courts, India has said that the matter is commercial and all parties are free to take legal recourse that they deem appropriate to meet their commercial goal.

What is the matter over Sistema?

§    Sistema is a Russian telecom company.

§  Incorporated in 1993, Sistema is now one of Russia’s top ten companies by revenues and is one of the largest investment companies in the world.

§  It has a joint venture with and it holds a major stake in Sistema  Shyam Teleservices Ltd. whose 21 out of 22 licences were cancelled by the Supreme Court in February, 2012 (when SC cancelled 122 licences).

§  Sistema Shyam Teleservices Ltd (SSTL), a JV between Russian conglomerate Sistema and India’s Shyam Group.

§  Mobile TeleSystems or simply MTS India is a subsidiary of Russian conglomerate Sistema

§  Russia had previously asserted it will not let Sistema’s USD 3.1 billion investment (in its Indian telecom venture) go waste due to "internal problems" in India.

 
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