Saturday, August 26, 2006

Telecommunications: Motorola wont seek compensation after Russian police destroy mobile phones

Despite Russian police destroying $2 million worth of mobile phones, the head of Motorola Inc.'s Russian division has said the company will not be seeking seek compensation.

Russian police confiscated tens of thousands of the mobile phones in March, saying they had been brought into the country illegally. The case was closed this month, and the phones have been returned - except for around 50,000 handsets that police destroyed in April, saying the phones were a health hazard.

Investors say this is an example of apparent corruption and meddling by authorities, who continue to cause difficulties for foreign companies.

In an email to Associated Press, Motorola country director Sergei Kozlov said, "our main objective is to put this all behind us and to move forward and cooperate with Russian authorities to avoid such incidents in the future."