Russian telecom giant to pay huge US fine to settle corruption case in Uzbekistan

Russia’s largest cell operator MTS has agreed to pay $850 million in fines to resolve US federal fees over alleged bribing of a authorities official in Uzbekistan to acquire entry to the nation’s telecommunications market.

MTS, or Mobile TeleSystems, which has a secondary itemizing on the New York Stock Exchange, mentioned it managed to attain a voluntary settlement with the US Securities and Exchange Commission (SEC) and the US Department of Justice (DOJ).

“The agreement puts an end to the investigation around the former MTS subsidiary in Uzbekistan carried out from 2004 to 2012,” the corporate mentioned in an announcement. “The penalty will be paid from the funds that were reserved by MTS in the third quarter of 2018.”

The SEC confirmed the knowledge, saying that other than the prison and civil fines, the corporate additionally agreed to an impartial compliance monitor for at the least three years. According to the company, MTS carried out illicit funds of at the least $420 million to unnamed entrance firms managed by the Uzbek official.

“The company engaged in egregious misconduct for nearly a decade, secretly funneling hundreds of millions of dollars to a corrupt official,” Charles Cain, chief of the SEC unit that investigates violations of the Foreign Corrupt Practices Act unit, mentioned in an announcement.

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