OREANDA-NEWS. On 03 April 2009 Southern Telecommunications Company (RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District reported that on 31st of March 2009 the Moscow Court of Cassation declared groundless the back-tax claims in the amount of 1.1 billion roubles (including fines and penalties) issued against Southern Telecommunications Company in relation to the Company’s activities in 2002-2003.

On 19th of September 2008 the Moscow Arbitration Court issued a verdict on the litigation between STC and Inspectorate # 7 of the Tax Ministry of the Russian Federation in relation to the Company’s activities in 2002-2003.  The Company managed to prove the legitimacy of its position, which was upheld completely in a court of law.

Inspectorate # 7 of the Tax Ministry of the Russian Federation filed an appeal with the Moscow Court of Cassation to deny the verdict of the Moscow Arbitration Court. On 31st of March 2009 the Moscow Court of Cassation made a decision to disregard the appeal of Inspectorate # 7 of the Tax Ministry of the Russian Federation and to uphold the verdict of the Moscow Arbitration Court.