Russia's top cell phone operator Mobile TeleSystems (MTS) on Thursday warned investors who plan to attend a Turkmen international conference of investment risks in the central Asian state.
MTS has booked a $160 million loss from suspension of its Turkmenistan license last year and brought legal action against the Turkmenistan Communications Ministry. Turkmenistan said that the license suspension was legitimate as an underlying five-year agreement with MTS has expired.
"The company believes it is its duty to inform the investment community and other international organizations of the possible risks of the Turkmenistan market, whose unpredictability may lead to violations of international business practices, while socially conscious business is accompanied by significant risks," MTS said in an open letter issued ahead of a 2011 Turkmenistan Oil & Gas Road Show conference.
"Turkmenistan's continuing self-willed actions force MTS to consider different steps with regard to its business, including complete termination of business activity, repatriation of the company's foreign specialists and withdrawal from the market."
The dispute between MTS and Turkmenistan comes as relationships between Russia and the ex-Soviet state worsened after Moscow had refused to increase gas purchases from Turkmenistan, which plans to triple gas output over the next 20 years and seeks larger export markets.
MTS said in its letter it still hoped that Ashgabat would find a solution and was in talks with the government.
MOSCOW/ASHGABAT, March 3 (RIA Novosti)
