Russia-based operator MTS has hit out at being shut down by the government in Uzbekistan, accusing it of attempting to seize the assets of its local mobile subsidiary (Uzdunrobita) and “trespassing on the basic rights” of its employees in the country.

Uzdunrobita, the Central Asian nation's largest mobile operator, had its licence suspended by the Uzbek authorities in July, ostensibly for non-payment of taxes and licence violations. A court this week backed the local regulator, terminating Uzdunrobita’s licences and effectively cutting-off service to its 9.5 million customers.

The Uzbekistan tax authorities have filed a total claim of US$900 million against the operator, though MTS is set to appeal.

In a statement, MTS alleged that the government’s strategy reflected “a decade-long pattern of inviting foreign investors into the country, creating profitable ventures, and then seizing those businesses based on false charges.” It added that five of its employees had been “detained illegally and arrested on the unwarranted and unsubstantiated charges,” and that MTS Uzbekistan's management team had been accused “of nearly every financial crime that exists.”

“Since June 2012, MTS Uzbekistan has been the target of blatant harassment by Uzbek government authorities with the thinly-veiled purpose of destroying the business and expropriating its assets,” the operator claimed.

MTS entered Uzbekistan in 2004, buying a 74 percent stake for US$121 million. It acquired the remaining 26 percent stake for US$250 million three years later. It claims to have invested an additional US$750 million over the course of its ownership.