Published by Global Banking and Finance Review
Posted on November 30, 2024
By Gianluca Lo Nostro and Leo Marchandon
(Reuters) - A Ukrainian court on Friday lifted a partial seizure of VEON's corporate rights in Ukraine's leading mobile operator Kyivstar, ending a year-long case triggered by the previous involvement of sanctioned Russian figures in the Nasdaq-listed telecoms group.
The Shevchenkivskyi District Court of Kyiv unfroze 47.85% of VEON's corporate rights in Kyivstar and its other Ukrainian units.
The restrictions were imposed by Ukrainian authorities in October 2023 due to sanctions and a broader asset seizure ordered against Russian oligarchs Mikhail Fridman and Petr Aven.
Fridman and Aven, co-founders of VEON's largest shareholder LetterOne, stepped down from the boards of both companies in 2022 following Russia's full-scale invasion of Ukraine.
VEON completed its exit from Russia in 2023, pivoting towards other markets where it operates under its telecoms and fintech brands.
While the seizure did not affect Kyivstar's day-to-day operations, it cast an "unnecessary shadow on investments" in Ukraine, VEON said in a statement.
It also prevented any ownership changes.
The ruling follows a similar one in April when the seizure of Fridman's shares in Lifecell - Ukraine's third-biggest telecoms firm by market share - was lifted, clearing the way for a takeover bid by French billionaire Xavier Niel.
Kyivstar has repeatedly been targeted by Russian hackers in their cyber operations to disrupt Ukraine's digital infrastructure.
"Today's decision demonstrates Ukraine's commitment to upholding the rule of law and fostering an environment supportive to business," VEON's CEO Kaan Terzioglu said.
Earlier this month, Terzioglu hinted at a potential U.S. IPO for Kyivstar, where VEON is now solely listed after leaving the Netherlands.
"Today's decision allows us to focus on our plans to increase energy resilience, expand 4G coverage and develop digital services in Ukraine," Kyivstar CEO Oleksandr Komarov said in a statement.
Terzioglu previously told Reuters VEON had identified some candidates for acquisition in the energy generation and distribution sector.
VEON is also planning to relocate from Amsterdam to Dubai in the next quarter, and has committed to invest $1 billion to rebuild Ukraine's digital infrastructure through 2027.
(Reporting by Gianluca Lo Nostro and Leo Marchandon in Gdansk; editing by Milla Nissi)
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