Increasing the share in MTS and creation of the integrated telecom operator

Sistema buys 10% of MTS from Deutsche Telecom and becomes the majority shareholder of East Europe's biggest mobile operator. It also acquires control over telecom companies Comstar (50%) and Cosmos TV (50%). The USD 35m transaction has become an important milestone in the process of consolidation of alternative telecom operators controlled by the Corporation (including MTU Intel and Golden Line) for creating a consolidated digital operator.

Hospitality business development

The Intourist Hotel Group management company spins off from the Intourist tourist operator business to develop hotels in Russia and abroad.

Participation in Skylink Moscow project

Sistema participates in the establishment of CJSC Skylink, a new mobile communication and wireless broadband internet operator working in the CDMA standard.