VEON invests $600 million in Ukrainian telecom. What does this mean for Kyivstar?

Telecom company VEON, which is based in the Netherlands and owns the Ukrainian communications operator Kyivstar, has announced its intention to invest $3 million over 600 years to restore and develop the telecom network in Ukraine. This was announced within the framework of the international conference on the recovery of Ukraine — Ukraine Recovery Conference, held in London. This was reported in "Kyivstar", writes ain.ua.

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The Ukrainian company also told what they could do with this money.

What will Kyivstar spend the investment on:

• Restoration of communications in the territories to be liberated.
• Construction of new network facilities.
• Increasing the coverage area of ​​4G communication in suburban areas and on highways.
• Development of new digital products and services for Ukraine and local communities.

For context: in April 2023, the investment company Shah Capital Management - a shareholder of VEON - proposed a number of steps to increase the price of the company's shares by 5 times (from about $19 per piece). In particular, sell "Kyivstar" or take it to IPO. Veon's latest investment intentions may indicate that the company has chosen the second option.

We will remind...

Veon is a large international telecom group with assets in 8 countries of the world and a head office in the Netherlands, the company's shares are traded in the USA, the revenue reaches $8 billion. Among other things, Veon is the parent company of the largest Ukrainian mobile operator Kyivstar, and until recently, one of Vimpelcom, the three largest mobile operators in Russia. The latter actively works with the Russian government, in particular, helps to make communication available in the Ukrainian territories occupied since 24.02.

Only in the ninth month of the full-scale war, Veon announced its intention to sell Vimpelcom. Before that, the company did not call the war in Ukraine a "war" and continued to work actively in the Russian market. The buyer of the business is the Russian top management of Vimpelcom. What made Veon reconsider its position is unknown. However, many questions arose before the agreement. In short: why is it so expensive and where does the money come from?

Read also on Newsky "The EU should double its support to Ukraine and provide everything for victory in the war, the head of the European Commission" and look at "Boring Pence" YouTube channels.

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