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Russia threatens international arbitration on 2G licence cancellation for Sistema

Last Updated: Tuesday, October 30, 2012 - 00:45

New Delhi: Stepping up pressure on India, Russia on Monday warned it that it will go for international arbitration if the issue of cancellation of 2G licence involving Russian telecom giant Sistema was not resolved in Indian courts.

"If the issue of cancellation of 2G license to Sistema is not resolved in Indian courts, we will go for international arbitration," Russian Ambassodor to India Alexander Kadakin said on the sidelines of a cultural event.

"We are upset about the decision," Kadakin added.

Russia, which has been conveying its unhappiness over the issue time and again, had earlier said the row over Sistema will have "great repercussion" not only on Indo-Russian bilateral cooperation but also for foreign investments in India.

Sistema holds 56.68 percent stake in Sistema Shyam Teleservices Ltd whose 21 out of 22 licences were cancelled by the Supreme Court in February on the grounds that the 122 permits issued by the then Telecom Minister A Raja were "arbitrary and unconstitutional". Russian government holds 17.14 percent stake in SSTL.

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" here.


First Published: Monday, October 29, 2012 - 21:16
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