16 June 2022

Russia’s biggest mobile operator MTS has started selling discounted and used smartphones, offering consumers cheaper alternatives as inflation bites and Western brands suspend shipments against the backdrop of the country’s invasion of Ukraine.

Smartphones from Chinese brands Huawei, Honor and Xiaomi, as well as South Korean manufacturer Samsung are now available for up to 50% less than new devices at stores and online. MTS said the brands offered and locations where they are sold would be expanded.

“This is a good opportunity for our company to offer consumers an additional way to save on purchases of quality gadgets,” said Pavel Sukhovarov, head of retail network development, MTS.

US tech giant Apple paused all product sales in Russia in early March, one of many Western companies to distance itself from Moscow since it sent tens of thousands of troops into Ukraine in February in what Russian president Vladimir Putin calls a special military operation.

Meanwhile, MTS has indefinitely postponed the planned sale of its tower assets.

The operator initially said that it was considering a sale back in November 2021 and was tipped to finalise an agreement in the first half of 2022. However, sanctions and the collapse of the rouble potential impacted negotiations. MTS owns circa 23,000 towers.

“We are continuing to look at different scenarios, we see interest in the asset and are in contact with potential investors,” the operator said.