In the garb of request, Sistema JSFC the largest diversified public financial corporation in Russia and the CIS on Tuesday threatened the government of India to settle the dispute relating to the revocation of SSTL’s 21 telecom licenses in an amicable way within six months failing which it would resort to proceedings against the government as provided under the Bilateral Investment Treaty (BIT) between the Government of the Russian Federation and the Government of the Republic of India BIT.

The company said it sent a formal notice to the Republic of India notifying it of a dispute under the Bilateral Investment Treaty (BIT) between the Government of the Russian Federation and the Government of the Republic of India arising from the decision of the Supreme Court of India ssued on February 2, 2012 regarding the cancellation of 122 telecom licenses, including 21 licenses belonging to Sistema Shyam TeleServices Ltd ("SSTL"), in which Sistema owns a 56.68% share.

“Sistema believes that the cancellation of SSTL's licenses following Sistema's investment of billions of dollars into the Indian cellular sector is contrary to India’s obligations under the BIT, including obligations to provide investments with full protection and security and obligations not to expropriate investments”, company said in a statement.

Mr Vsevolod Rozanov, President and CEO, Sistema Shyam TeleServices Ltd, said: “Our investors including Sistema JSFC and Rosimushestvo, the Russian Federal Agency for State Property Management, are being penalised for acting in good faith and in reliance on the appropriateness of procedures established by India's telecommunications authorities.”