Min sees no Sistema-related risks for telecom industry, MTS quotes

GORKI, Moscow Region, Dec 18 (PRIME) -- Russia’s Communications and Mass Media Ministry does not see risks for the telecommunications industry because of a court move on multi-industry holding Sistema, which controls major mobile operator MTS, whose quotations should be also unaffected, Minister Nikolai Nikiforov told reporters on Monday.

“The company (MTS) does have leading positions on the market by a number of indicators. Frankly speaking, we don’t see any risks because MTS is not directly involved, unlike its key shareholders,” Nikiforov said.

The Eighteenth Arbitration Court of Appeals, located in the city of Chelyabinsk, upheld earlier on Monday a lower court ruling ordering Sistema to repay 136.3 billion rubles to oil company Bashneft.

“As far as I know, MTS does not receive any funding from its shareholders. On the contrary, it is more likely a source of payment of dividends, and it quite firmly holds positions by revenue, profit, dividends. This is why I have no comments here on the court’s decision. I think it should not have a direct impact on quotes of MTS,” the minister said.

MTS’ common shares lost 2.18% to 260.20 rubles on the Moscow Exchange as of 3:35 p.m.

(58.8987 rubles – U.S. $1)

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