VEON, which is the sole shareholder of Kyivstar, today filed a motion with the court to challenge the seizure of the operator’s corporate rights.
As a reminder, the seizure of 100% of Kyivstar’s corporate rights was initially announced on the SBU website on 6 October 2023, but later the Shevchenkivskyi District Court of Kyiv corrected the error in its decision and determined that 47.85% of corporate rights “owned by sanctioned persons” were subject to seizure.
VEON notes that it is the sole owner of corporate rights in Kyivstar. Therefore, full or partial seizure of the Ukrainian telecom operator’s corporate rights violates the rights of both VEON and its international investors. In this regard, VEON is seeking to challenge the arrest of its corporate rights in Kyivstar.
In its submissions to the court, VEON confirmed that any actions aimed at the rights, benefits or funds of the sanctioned persons cannot be directed at Kyivstar or VEON. These persons do not hold any shares in VEON or Kyivstar, cannot exercise any rights in relation to VEON or Kyivstar, are not members or participants in any of the company’s governing bodies, including the management board, have no ability to control or influence decisions made by VEON or Kyivstar and do not receive any benefits from VEON or any of its operating companies.
“As we promised our investors, VEON is taking all necessary steps to protect the rights of our subsidiary Kyivstar and our international investors. VEON’s and Kyivstar’s impeccable track record of service delivery in Ukraine, the dialogue we established last week in Ukraine during our delegation’s visit and the continued availability of appeal mechanisms and procedures give me confidence that we will achieve our goal of protecting our rights,” said Kaan Terzioglu, CEO of VEON Group.
As of the time of publication, neither VEON nor Kyivstar has been officially served with the court decision to seize corporate rights in Kyivstar, nor with the amended court ruling of 13 October 2023, which reduced the percentage of seized corporate rights to 47.85% of shares.
Veon notes that if the petition to challenge the arrest of Kyivstar’s corporate rights is rejected, the company will take further steps under the current Ukrainian legislation, including filing an appeal to higher authorities.
Kyivstar continues to serve 25 million customers and keep Ukraine connected with 94% availability of the telecom network, providing its services in full compliance with Ukraine’s national security priorities.