MTS Starts Monitoring Activities of Its Subsidiary in Armenia at Request of the U.S.

At the request of the United States, MTS has begun to monitor the activities of its subsidiary in Armenia. In 2019, the Russian operator paid a fine of $850 million to the U.S. in connection with a corruption case in Uzbekistan. This was reported by Forbes' Russian service.

MTS announced that the compliance monitoring system, which was implemented in agreement with U.S. authorities, has drawn attention to the operations of the company's subsidiary in Armenia. MTS notes that it has provided information about the transaction to the U.S. Department of Justice and the Securities and Exchange Commission. They have also requested additional information regarding the transactions, and MTS has commenced the audit.

“At this moment, we cannot predict the timeline or outcome of the audit,” MTS stated in its report. “As a publicly traded company, we always disclose any information regarding inquiries from regulatory authorities. It seems premature to comment in detail on the process and the content of the audit at this stage. We continue to develop the compliance system within MTS, including in our branch in Armenia,” MTS's press service told Interfax.

In 2019, MTS established an independent compliance monitoring system under a friendly agreement reached with the SEC and the U.S. Department of Justice, aimed at improving the company's internal anti-corruption policies, regulations, and procedures. The agreement was signed in the context of the anti-corruption investigation into the company's operations in Uzbekistan. Accordingly, the company paid a fine of $850 million to U.S. authorities in 2019.