Russia threatens arbitration on 2G license cancellation for Sistema

Stepping up pressure on India, Russia today warned it that it will go for international arbitration if the issue of cancellation of 2G licence involving Russian telecom giant Sistema was not resolved in Indian courts.

"If the issue of cancellation of 2G license to Sistema is not resolved in Indian courts, we will go for international arbitration," Russian Ambassodor to India Alexander Kadakin said on the sidelines of a cultural event.

"We are upset about the decision," Kadakin added.

Russia, which has been conveying its unhappiness over the issue time and again, had earlier said the row over Sistema will have "great repercussion" not only on Indo-Russian bilateral cooperation but also for foreign investments in India.

Sistema holds 56.68 per cent stake in Sistema Shyam Teleservices Ltd whose 21 out of 22 licences were cancelled by the Supreme Court in February on the grounds that the 122 permits issued by the then Telecom Minister A Raja were "arbitrary and unconstitutional". Russian government holds 17.14 per cent stake in SSTL.

Russia had previously asserted it will not let Sistema's USD 3.1 billion investment in its Indian telecom venture go waste due to "internal problems" here.

On Koodankulam issue, Kadakin said the nuclear power plant in Tamil Nadu is the "best and safest" in the world.

If India wants to sustain a growth rate it needs consistent supply of nuclear energy, he said.

"Our station is the safest and best in the world. The first unit is complete and the second is about to be completed. Negotiations are on for third and fourth," Kadakin said.

Asked about Tamil Nadu Chief Minister Jayalalitha support to the power plant, he said "it's not about the Russian side, it's India's side. Those opposing the plant are against India.

"Protestors were silent for a while but I think another fresh inflow of foreign money came in and they are back," he said.

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