Note 17: Investments and Advances to Associates
At December 31, 2007 and 2006, the Group’s investments in and advances to associates comprised the following:
| December 31, | |||
| 2007 | 2006 | ||
| MTS Belarus—equity investment | $188,622 | $119,802 | |
| MTS Belarus—loans receivable | — | 21,341 | |
| Coral/Sistema Strategic Fund—equity investment | 6,916 | — | |
| Receivables from other investee companies | 370 | 330 | |
| Total investments in and advances to associates | $195,908 | $141,473 | |
MTS Belarus—As of December 31, 2006, the Group provided MTS Belarus with a total of $21.3 million in loans. These loans bore interest of 3% to 11% per annum. As of December 31, 2007 these loans were fully repaid.
Coral/Sistema Strategic Fund—In August 2007, the Group purchased an equity interest in a strategic fund organized by Sistema in order to invest in various projects in the telecommunications and high-technology area. The fund is organized in the form of limited partnership. The Group has committed to invest up to $26.3 million if called upon by the General Partner.
The equity investment in TS-Retail is recorded at $nil as of December 31, 2007. See also Note 15.
The Group’s share in net income of associates is included in other income in the accompanying consolidated statements of operations. For the years ended December 31, 2007, 2006 and 2005, this share amounted to $72.7 million, $58.1 million and $42.4 million, respectively.