Control of Djezzy by the Algerian state: is nearly complete

The Algerian government is preparing to lift the sanctions imposed on Djezzy, allowing it to start buying and importing new technologies and equipment, in addition to granting it the right to transfer its profits, the Algerian newspaper Al Fajr. revealed However, a source with knowledge of the negotiations told Reuters that talks were ongoing and no agreement had yet been reached, according to the Algerian daily El Watan.

Algeria wants to buy Djezzy, the number one on the Algerian telecom market and put pressure on the Russian company Vimplecom in the discussions, which have dragged on for more than two years. According to Reuters discussions stumbled, particularly the prohibition on currency transfer imposed by the Bank of Algeria in 2010. The ban prevents buy equipment abroad. In March 2012, the Algerian authorities had imposed a fine on the operator estimated at $ 1.3 billion following a complaint filed by the Bank of Algeria  against Djezzy for violations of the Exchange Act of 2010. A fine in addition to tax adjustments that were imposed.
 

The Russian telecom giant had even announced that he would resort to international arbitration against Algeria. Naguib Sawiris requested arbitration last November before the International Centre for Settlement of Investment Disputes (ICSID), headquartered in Washington, the Algerian daily EL Watan notes.. He accused the Algerian government of having interfered in the management of OTA, which ultimately led to the sale of Djezzy to the Russian  company Vimplecom. Egyptian telecom tycoon is claiming 5 billion compensation.