The antitrust watchdog said it is ready to drop its lawsuit against Norway's Telenor over its stake hike in telecoms group VimpelCom, marking a further easing of tensions over control of the group.
The lawsuit had been filed by the agency in April to contest the dominant position Telenor had at that time built up in VimpelCom, whose strategic importance in Russia the regulator believed required that it be kept free of foreign control.
Igor Artemyev, head of the watchdog, said on Wednesday the watchdog would present its proposal regarding the settlement of the case to a government commission on foreign investments at a Nov. 21 meeting.
"If the commission approves it, it will mean withdrawal of the lawsuit and an end to all [legal] proceedings," Artemyev told reporters.
The settlement of the case has become possible after Russian tycoon Mikhail Fridman's Altimo raised its VimpelCom stake, overtaking Telenor as the biggest shareholder.
Telenor subsequently changed its stance towards VimpelCom, declining to rule out a sale in what was seen at the time as potentially signaling an end to the decade-long ownership battle.
"We very much hope that if the commission makes the decisions we are hoping for, then we hope to close this issue and hope that third parties … would not object either," Artemyev said.
The Moscow Arbitration Court is due to hear the lawsuit on Nov. 27. The antitrust agency had filed the lawsuit because it was concerned with the dominance of a foreign state-controlled firm in VimpelCom, whose Russian unit is considered by the government a strategic asset.
Removal of the case would allow VimpelCom to resume the dividend payments it had deferred after the watchdog filed its action.
Related articles:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.