These days, executives of the international telecom group VEON (listed on Nasdaq and Euronext Amsterdam) are hosting Kyiv. VEON is a 100% owner of the largest Ukrainian telecom operator Kyivstar. This was reported to HiTech Expert by the company’s press service.
Kaan Terzioglu, CEO of VEON Group, and Ogi Fabela, co-founder and honorary chairman of VEON’s board of directors, scheduled meetings with Kyivstar employees, business partners, government officials, and partners in implementing humanitarian initiatives in Ukraine, such as the Come Back Alive Foundation and the Lviv-based Unbreakable Medical Center.
During the meeting with Kyivstar’s staff, VEON’s management expressed concern over the information about the seizure of a share of corporate rights of its subsidiary in Ukraine.
Thus, on October 6, 2023, the websites of a number of government agencies published information about the “seizure of 100% of Kyivstar’s corporate rights”, citing a court decision that neither VEON nor Kyivstar has received yet. Subsequently, this information was found to be false, and it was reported that the package of seized corporate rights was reduced to 47.8%. This decision was made in order to prevent Russian sanctioned persons who own shares in one of VEON’s minority shareholders (LetterOne) from accessing the company’s assets.
Meanwhile, according to Kaan Terzioglu, these sanctioned persons have “zero” influence on VEON and Kyivstar. Even at the beginning of Russia’s full-scale invasion, they were removed from any access to the company’s assets or management mechanisms.
According to Mr. Terzioglu, VEON’s American investors have appealed to U.S. senators over the seizure of Kyivstar’s corporate rights. Investors consider such actions to be a negative signal, given the enormous support provided by American taxpayers to Ukraine in its resistance to Russian military aggression. VEON investors from the UK and EU countries also share this concern and have sent letters to their government representatives asking for clarification.
“During our visit to Kyiv, we want to convey our concerns and demonstrate once again that VEON is an asset to Ukraine, not a liability. We are here to stay in Ukraine and we are committed to Ukraine. We want our business to be understood and reflected as it really is: an exemplary success story of international investment in Ukraine,” Terzioglu commented. He expressed hope that Ukraine has mechanisms to protect the interests of international investors.
In addition, Terzioglu expressed his admiration and respect for the resilience and courage of his Ukrainian colleagues who have been maintaining the stable operation of critical infrastructure throughout the period of Russia’s full-scale invasion, risking their own lives. To support Ukraine in its struggle, VEON will allocate USD 600 million of investments to be used over the next three years to restore telecom infrastructure and develop new technologies.
“Kyivstar’s 4000 heroes have done a great job over the past 20 months, keeping subscribers connected and supporting the country’s resilience even as the war rages on. With this $600 million investment, we are honored to contribute to the restoration and reconstruction of Ukraine’s infrastructure,” said Kaan Terzioglu.
Kyivstar President Alexander Komarov said: “The visit of the VEON delegation to Ukraine is a logical step after the complete and irrevocable withdrawal from Russia. For the company, this is an indication that the investment efforts of our shareholders will be even more focused on Ukraine.”
VEON is the parent company and sole owner of Kyivstar, the largest telecommunications operator in Ukraine, serving more than 24 million mobile subscribers and 1.1 million Home Internet subscribers. VEON is listed on Nasdaq and Euronext Amsterdam, with a global investor base that includes individuals and institutions in the US, EU and UK, and has no controlling or majority shareholder. VEON has recently responded to rumors about Kyivstar’s ownership with a statement claiming that it is the sole and rightful owner of Kyivstar and intends to use all available means to preserve its ownership rights.
