Sistema of Russia announced that the Russian government has approved a $ 600 million equity investment in Sistema Shyam Teleservices Ltd. (SSTL) which offers CDMA-based mobile services under MTS brand in India.

Under the move, the Russian Government, represented by the Federal Agency for State Property Management (Rosimushchestvo), will participate in an issuance of additional shares of SSTL, paying an equivalent of US$ 600 million in the form of Indian rupees held in accounts representing Indian governmental debt to the Russian Federation, said a company statement.

The issuance of shares to the Russian Government is subject to the receipt of necessary regulatory and corporate approvals, including the approval by the General Meeting of shareholders of SSTL, and the signing of binding agreements.