Vimpelcom takes USD 900 mln charge for Uzbek investigation

News Wireless Uzbekistan 3 NOV 2015
Vimpelcom takes USD 900 mln charge for Uzbek investigation
Vimpelcom announced it will take a provision of USD 900 million to cover potential liabilities in the investigation into its Uzbekistan activities. Vimpelcom said it was still in talks with the authorities on resolving the case and there was no assurance as to the final cost to the company. 

The Securities and Exchange Commission and Department of Justice in the US where Vimpelcom is listed and the Public Prosecutor (Openbaar Ministerie) of the Netherlands where Vimpelcom is based are investigating how Vimpelcom obtained its operating licence in Uzbekistan. The company is suspected of paying bribes to a close relative of Uzbek president Islam Karimov, in exchange for access to Uzbekistan's telecommunications market. Vimpelcom has been in talks with the authorities on settling case since early this year. The company declined to comment further.

Vimpelcom's shareholder Telenor issued a statement separately, saying the provision taken by the company "significantly increases our concerns in relation to the potential outcome of the still ongoing investigations". Telenor, which has a 33 percent stake in Vimpelcom, has served as a witness in the investigation. 

Categories:

Mobile

Companies:

Vimpelcom

Regions:

Global

Countries:

Uzbekistan

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Government telecommunications licensing, Regulations, Finance, Legislation - Lawsuits

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