Russian Mobile Telesystems Pjsc and Its Uzbek Subsidiary Make Settlements with U.S. over Bribery and Money Laundering

On March 7, 2019, Moscow-based Mobile TeleSystems PJSC (MTS), the largest mobile telecommunications company in Russia and an issuer of publicly traded securities in the United States, and its wholly owned Uzbek subsidiary, KOLORIT DIZAYN INK LLC (KOLORIT), have settled with the U.S. Department of Justice and Securities and Exchange Commission (SEC), wherein they agreed to pay a combined total penalty of $850 million to resolve charges arising out of a scheme to pay bribes in Uzbekistan.  Additionally, the DOJ unsealed charges against a former Uzbek official who is the daughter of the former president of Uzbekistan and against a former CEO of Uzdunrobita LLC, another MTS subsidiary, for their participation in a bribery and money laundering scheme concerning more than $865 million in bribes from MTS, VimpelCom Limited (now VEON)and Telia Company AB (Telia) to the former Uzbek official in order to secure her assistance in entering and maintaining their business operations in Uzbekistan’s telecommunications market