Mobile firm caught up in Georgia-Russia tension

Georgia accused a Russian mobile operator of illegally expanding its network into a breakaway Georgian region on Friday in the latest tense exchange between the two countries.

TBILISI: Georgia accused a Russian mobile operator of illegally expanding its network into a breakaway Georgian region on Friday in the latest tense exchange between the two countries. The allegation came days after Georgian troops briefly detained a group of Russian peacekeepers, prompting Moscow to warn of possible bloodshed if such an incident happened again.

Georgia's pro-Western government says Moscow is effectively annexing Abkhazia and South Ossetia, two regions which threw off Tbilisi's control in separatist wars in the 1990s and now run their own affairs with support from Russia. Georgia's National Communications Commission said Russian mobile firm MegaFon was carrying out illegal activities on its territory and must pay a fine of $3,500 within 30 days.

MegaFon, Russia's number three mobile operator, denied it operated on Georgian territory and said it could not stop people from accessing its services from base stations in nearby Russian regions. "In villages...the population has been using MegaFon company sim-cards, in particular MegaFon Northern Caucasus, since 2005," the Georgian telecoms regulator said on its website.

"The work of MegaFon without a licence on the territory of Georgia may be considered a criminal activity," it said. A MegaFon spokeswoman confirmed the company had received a notice from the Georgian authorities and said lawyers were studying it.

"We are not carrying out any commercial activities in Georgia," said spokeswoman Marina Belasheva. Asked to explain how people in South Ossetia were using MegaFon services, she said it was "impossible to limit the transmission of base stations in a way that matches the border." Russian firms are the biggest outside investors in both Abkhazia and South Ossetia, angering Georgia, which says investors should seek its permission.

Georgia has in the past threatened to seize the foreign bank accounts of Russian firms operating in Abkhazia, the bigger of the two regions. Last year it said it would take legal action against the Russian edition of business magazine Forbes for publishing details of properties for sale in Abkhazia.

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Tensions with Moscow over the two breakaway regions have been further aggravated by Georgia's ambition to join NATO, which Russia firmly opposes. MegaFon is co-owned by the Nordic region's biggest telecom operator TeliaSonera Russian billionaire Mikhail Fridman's Alfa Group and metals magnate Alisher Usmanov.
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