Russia on Sunday said the row over its telecom firm Sistema in India would have “great repercussions” not only on bilateral cooperation but also for foreign investments in the country. Expressing this view, Russia’s Deputy Prime Minister Dmitry Rogozin hoped a solution that was acceptable to both parties could be reached in the wake of cancellation of Sistema’s 2G licences.
“This is a big project involving $3 billion, some part of which is state money. It is not possible to renew the terms when the contract is concluded. The Sistema contract was concluded based on Indian laws,” he told reporters ahead of the Inter-Governmental Commission meeting tomorrow. Rogozin said the problems in Sistema’s investments in India would have “great repercussions” for future cooperation not only of Russian partners but also flow of foreign funds into the country.
Russia had previously said it would not let Sistema’s $3.1-billion investment in its Indian telecom venture go waste due to “internal problems” here. Sistema holds 56.68 per cent stake in Sistema Shyam Teleservices, whose 21 out of 22 licences were cancelled by the Supreme Court this February on the grounds that the 122 permits issued by the then telecom minister A Raja were “arbitrary and unconstitutional”.
The Russian government holds 17.14 per cent stake in SSTL.
