Last week, MTS bought a controlling stake in Bitel for $150 million with an option to buy the remaining shares before the end of the year.

Bitel was in the midst of an ownership dispute between Alliance Capital, linked to Kyrgyzstan's former ruling family, and Alfa Group, the private equity group headed by billionnaire Mikhail Fridman.

Kyrgyztan's Supreme Court upheld a decision by a lower court which ruled that Rezervspetsmet, which MTS says is linked to Alfa was Bitel's rightful owner. On Dec.15 Reservspetsmet seized Bitel's offices.

But ALTIMO, Alfa Group's telecoms arm, said in a statement it had no relation to Rezervspetsmet.

"ALTIMO has no relation to ZAO Rezervspetsmet and to the events which are happening now in Kyrgyzstan around Bitel mobile phone company," it said. ADVERTISEMENT

It said that Fellowes, an ALTIMO subsidiary, used to own Bitel, but transferred ownership rights to Rezervspetsmet this spring.

© "Reuters"