“Kyivstar, Ukraine’s largest telecommunications operator, and its parent company VEON have confirmed their intention to invest a total of $1 billion in the country between 2023 and 2027, First Vice Prime Minister and Minister of Economy Yulia Svyrydenko said following a meeting on the sidelines of the World Economic Forum (WEF) with VEON CEO and founder Augie Fabella.
“No less important is the potential listing of Kyivstar on Nasdaq, which will open Ukraine’s access to global capital markets. In addition, global technology partnerships with companies such as Starlink will support sustainable growth,” Svyrydenko said in a post on X.
Kyivstar CEO Oleksandr Komarov, who took part in the meeting, toldInterfax-Ukraine on the sidelines of the Davos Ukrainian Breakfast organized by the Pinchuk Foundation that the company has already invested more than $400 million of the $1 billion in investments it had declared.
“We are planning to continue, nothing has changed,” Komarov emphasized, speaking about increasing these investments to $1 billion.
The CEO noted that the first priority is to invest in critical infrastructure, network, and new technologies. According to him, Kyivstar is on track to meet its 2024 target, and the results achieved, in particular in terms of increasing data transfer speeds, are encouraging.
Komarov added that the company is also taking steps towards possible inorganic business expansion. According to him, Kyivstar has made a purchase of a small fixed-line operator in 2024.
“We are looking at other goals, including those within the digital ecosystem,” the CEO said.
He also said that an important task for the Ukrainian government is to attract domestic and foreign investors and unite with business to improve the investment climate and business opportunities.
“Kyivstar – as of September 2024, Kyivstar served about 23.3 million mobile subscribers and more than 1.1 million home Internet subscribers in Ukraine. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, cybersecurity services, digital TV, etc.
In mid-January this year, VEON announced the signing of a protocol of intent to place a part of Kyivstar shares on the Nasdaq stock exchange through the SPAC company Cohen Circle Acquisition Corp (CCIRU).
On Friday, Forbes Ukraine reported that Kyivstar had filed an application with the Antimonopoly Committee late last year to buy Uklon, a digital taxi service.
Kaan Terzioğlu, CEO of VEON Group, the parent company of Ukraine’s largest telecom operator Kyivstar, plans to return to Kyiv in late January to meet with his team and continue the dialogue with the Ukrainian authorities, he said in an interview with Forbes Ukraine.
“I hope that we will meet with many stakeholders, including the Ukrainian government, but not only,” Terzioglu said.
He added that during his first visit in October last year, he was unable to talk to Deputy Head of the Presidential Office Rostyslav Shurma, who has been publicly stating the possibility of nationalizing Kyivstar since July last year, and hopes that he will be able to do so during his upcoming visit.
“When the rumors emerged and Mr. Shurma gave his interviews, it had a significant impact on trading volumes and share prices. Now the shock has passed, but we lost almost 30% of the value of our shares during that period,” stated the CEO of VEON.
Commenting on the seizure of 47.85% of Kyivstar shares, which is comparable to Letter One’s stake in VEON, Terzioglu said that an appeal has been filed and expressed hope that the seizure will be lifted and this will help reassure international investors. He emphasized that VEON owns all 100% of Kyivstar’s shares, and Letter One, according to his information, has distanced itself from co-owners Mikhail Fridman and Petr Aven, who are subject to international sanctions, and is not subject to such international sanctions.
According to VEON’s CEO, the seizure of Kyivstar shares does not affect the company’s operations, ability to operate and maintain its networks. “The arrest only affects the ability to receive dividends or transfer shares from one owner to another,” Terizoglu explained.
Earlier it was reported that the Shevchenkivskyi District Court of Kyiv reduced the package of seized shares of Kyivstar from 99.994654% to 47.85%, and the seized share of LifeSell LLC from 100% to 19.8% as part of interim measures in the case against Alfa Group co-owner Mikhail Fridman opened in late September. He made such changes to the earlier ruling of October 4 based on a motion filed by a prosecutor from the Prosecutor General’s Office due to a typo. As for the rest of the seized assets, the court confirmed the accuracy of their original description. In particular, 100% of the corporate rights of three Kyivstar-affiliated companies, including Kyivstar.Tech, Helsi, and the Ukrainian Tower Company, remain under arrest.
VEON, a Nasdaq and Euronext-listed international telecommunications group that is 100% owner of the largest Ukrainian telecom operator Kyivstar, has received the Crisis Response Awards 2023 international award for its crisis communication program in Ukraine, Pakistan and Bangladesh.
The decision was made by the World Communication Awards Association in Amsterdam on November 22, 2023.
The winners of the World Communication Awards are determined during the Total Telecoms International Congress. The decision is made by an international jury of more than 90 telecom industry experts, CTOs of the largest international IT and telecom companies, as well as reputable representatives of the communications industry from around the world.
VEON was recognized for its “comprehensive approach to providing communications during the most challenging operational situations caused by both natural disasters and global conflicts, during which the Group ensured the resilience of telecom networks, implemented early warning programs and provided humanitarian assistance. The jury of the competition separately noted the efforts of Kyivstar and the company’s CTO Volodymyr Lutchenko in organizing work to keep Ukrainians connected at home and abroad, ensuring the functioning of the telecommunications network and communication services despite shelling and power outages, and developing the Helsi IT platform for providing online medical consultations.
Over the past two years, VEON has focused on developing technologies for the most vulnerable people and communities to help them overcome the challenges of wartime, such as in Ukraine, or during natural disasters, such as in Pakistan or Bangladesh.
“VEON’s crisis response initiatives have proven to be extremely important in protecting against large-scale disasters and ensuring connectivity during geopolitical challenges,” said VEON CEO Kaan Terzioglu. “In all the markets where the Group operates, we have provided connectivity to all subscribers and contributed to the provision of humanitarian aid to those who need it most.
About Kyivstar
Kyivstar is Ukraine’s largest electronic communications operator, serving more than 24 million mobile subscribers and over 1 million Home Internet subscribers as of September 2023. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, cybersecurity services, digital TV, etc. Kyivstar helps subscribers, society and the country to overcome the challenges of wartime. Since the beginning of the full-scale war, the company has allocated more than UAH 1.3 billion in aid to meet the humanitarian needs of the Armed Forces, society and subscribers. Kyivstar’s sole shareholder is the international VEON Group (headquartered in the Netherlands). The Group’s shares are listed on NASDAQ (New York) and Euronext (Amsterdam). Kyivstar has been operating in Ukraine for 25 years and is recognized as the largest taxpayer in the telecom market, the best employer and a socially responsible company.
pr@kyivstar.net, www.kyivstar.ua
About VEON
VEON is a digital communications operator that provides converged connectivity and digital services to nearly 160 million customers. With operations in six countries, home to more than 7% of the world’s population, VEON transforms lives through technology services that empower people and drive economic growth. Headquartered in Amsterdam, VEON is listed on the NASDAQ and Euronext stock exchanges. For more information, please visit: https://www.veon.com.
Global digital communications operator VEON (office in the Netherlands) announced the completion of its exit from Russia and the sale of its Russian asset to Vimpelcom. The terms of the deal do not provide for the possibility of repurchase, i.e. the completion of operations in the Russian market is complete and final for VEON
As Kyivstar President Alexander Komarov comments, “after a long series of legal procedures, our 100% shareholder VEON puts an end to its relationship with the Russian telecom market. This will mean strengthening the company’s development strategy in six other markets, including Ukraine”. In particular, in the next three years, VEON plans to invest 600 million dollars in Ukraine, which will be used to restore the telecom network and develop digital services and new mobile technologies.
Oleksandr Komarov emphasized that Kyivstar has been operating as usual, and since the beginning of Russia’s full-scale invasion has already invested UAH 8.2 billion in the development of the country’s telecom market, paid UAH 15.2 billion in taxes to the state, and provided support to state bodies, military, security and law enforcement agencies in the amount of more than UAH 1.4 billion, including bonuses and services without additional payment in the amount of UAH 577 million.
In addition, Kyivstar is now preparing the network to operate in conditions of possible power outages, for which it has invested UAH 988 mln. By the end of 2023, 110 thousand new batteries will be installed at Kyivstar’s base stations.
Background on Kyivstar
Kyivstar is Ukraine’s largest electronic communications operator, serving 24.1 million mobile subscribers and over 1.1 million Home Internet subscribers as of June 2023. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, Cloud solutions, services for cyber defense, digital TV, and others. Kyivstar helps subscribers, society and the country to overcome the difficulties of wartime. Since the beginning of the full-scale war, the company has allocated more than UAH 1.4 billion of assistance to the state, military, society and subscribers. The only shareholder of Kyivstar is the international VEON Group. The Group’s shares are freely traded on the NASDAQ (New York) and Euronext (Amsterdam) stock exchanges. Kyivstar has been operating in Ukraine for over 25 years and is recognized as the largest taxpayer in the telecom market, the best employer and a socially responsible company.
Ukraine’s largest mobile operator Kyivstar will receive $600m of investment from its parent company VEON over the next three years to implement infrastructure projects, including in the liberated territories, expand 4G coverage, focus on 5G reconstruction, support operator services and charity.
VEON announced the investment commitment at the Ukraine Recovery Conference in London (URC2023), according to a statement on the company’s official website Wednesday.
“Global digital operator VEON will invest the equivalent of $600 million in its subsidiary Kyivstar over the next three years. The investment will cover Kyivstar’s infrastructure projects, providing essential communications and 4G services across the country, developing high-quality digital services available to all Ukrainians, and community support projects,” the statement reads.
The company notes that investments will be made to support Kyivstar services as well as digital verticals that will have a positive social impact on the Ukrainian society. They will allow to expand the operator’s network from “LTE everywhere” and fiber to the reconstruction focused on 5G, to provide high-quality Internet coverage for millions of users.
With the planned expansion of 4G networks Kyivstar plans to increase 4G coverage to 98% in Ukraine, including in small and remote settlements in three years. The investments will be used to expand the network connectivity.
In addition, Kyivstar will continue to provide funds for charity support. In VEON reminded that from the beginning of the full-scale invasion, the operator has allocated 1.1 billion UAH (about $32.5 million) for these purposes.
“As part of its investment commitment, Kyivstar will continue working with leading Ukrainian NGOs and community initiatives, supporting charitable projects with donations and socially responsible business partnerships,” the press release said.
“The last 16 months have shown the world that communications really is a lifeline for Ukraine. Thanks to the dedication of our team of 4,000 people and the support of our parent company VEON, Kyivstar plays a key role in ensuring the sustainability and recovery of Ukraine from February 24, 2022,” Kyivstar President Alexander Komarov is quoted in the statement.
On his Facebook page, Komarov also noted that the parent company’s investment will allow Kyivstar to restore communications in territories that will be vacated, build new network facilities, increase 4G coverage in the suburban area and on highways, and develop new digital products and services for Ukraine and local communities.
“Kyivstar is the largest mobile communications operator in Ukraine with 24.3 million mobile subscribers and over 1.1 million home internet subscribers. The company provides services based on mobile and fixed-line technologies, including 4G, as well as innovative services such as Big Data, IoT, cloud solutions, digital TV, digital health, etc.
Since the full-scale invasion, Kyivstar’s technicians performed about 150 thousand repairs, which is twice as much as before the invasion, reconnected 800 settlements, modernized and deployed about 10 thousand 4G base stations and installed 32 thousand new batteries to ensure the continuity of communication in case of the blackout.
Kyivstar is 100% owned by VEON, an international group headquartered in the Netherlands.
VEON is a global digital operator that currently provides convergent communications and online services to more than 160 million customers in six dynamic emerging markets VEON is listed on NASDAQ and Euronext Amsterdam.
The VEON international telecommunications holding, which is the parent company of the Ukrainian mobile operator Kyivstar, recorded a 10.8% increase in revenue in Ukraine in national currency over the first five months of 2022.
According to a VEON press release published by PRNewswire on June 29, 2022, EBITDA decreased by 0.2% in five months (in local currency).
Kyivstar is the largest Ukrainian telecommunications operator. It provides communication and data transmission services based on a wide range of mobile and fixed technologies, including 4G.
Kyivstar’s shareholder is the international group VEON (formerly VimpelCom Ltd.). The group’s shares are listed on the NASDAQ (New York) stock exchange.
