According to reports, the Ukrainian government is likely to favour bids from European companies in the country’s airwave auction in a bid to curb Russia’s influence on the economy.
Russian-registered companies that own over 50% in Ukraine are not likely to be allowed to participate in Ukraine’s long-awaited 3G auction, according to reports in Kiev.
MTS is likely to partner with a western investor to share the investment in Ukraine, with a 3G licence likely to cost approximately $232 million each.
However, it is more likely that MTS will seek to sell a stake in the country, given the pressures it is facing from the Ukrainian government to reduce its presence.
MTS Ukraine is the country’s second-largest operator, and the only one that is controlled by a Russian player.
Earlier this year, MTS cut its forecasts for operations in Ukraine given the political instability.
