Public Joint Stock Company Moscow City Telephone Network (MISX:MGTS) (MTS) is indefinitely postponing the sale of its tower assets, the Kommersant daily reported on April 26, 2022, citing sources, as Moscow's actions in Ukraine spill into the domestic M&A scene. Chief Executive Officer Vyacheslav Nikolaev in November 2021 said MTS may sell its tower assets, following an industry-wide trend of telecoms firms cashing in on the money-making power of masts. But the industry is one of many in Russia now facing supply constraints and equipment headaches.

One source told Kommersant that MTS had planned to finalise the deal in the first half of 2022, but the worsening economic situation caused by the conflict in Ukraine meant no one was currently able to buy the MTS tower portfolio. “We are continuing to look at different scenarios, we see interest in the asset and are in contact with potential investors,” MTS said in a statement. Kommersant mentioned investment firm Kismet Capital Group and independent tower company Service-Telecom as two buyers linked to the deal.

A Service-Telecom representative said it was continuing all communications related to implementing its M&A strategy. “In this process we are taking into account the current macroeconomic conditions, which at the moment are impacting the dynamics and subject of talks,” the representative said. Kismet Capital Group did not immediately respond to a request for comment.