Kyivstar Shares Seizure May End as U.S. Buyers Show Interest
The seizure of part of Kyivstar’s corporate rights may be lifted in the near future. Instead of nationalization, the company expects the arrival of American investments.
Kyivstar is the largest mobile operator in Ukraine, serving over 25 million subscribers. The company plays a vital role in supporting digital infrastructure, mobile banking, remote learning, and national security communication. Since the onset of the war in 2022, Ukraine’s telecom networks have been considered critical to the country’s economic resilience and access to information.It says “Mediasat“, referring to the publication of the Washington publication Capitol Intelligence Group (CI).
As the journalists of “SI” note, a group of leading American investment funds has expressed interest in taking over VEON.
VEON Ownership Shift Behind the Kyivstar Shares Seizure Update
And this Dutch holding is the owner of the largest Ukrainian mobile operator “Kyivstar”.
Earlier, the court seized all corporate rights in Ukraine belonging to Russian oligarchs Mykhailo Fridman, Petro Aven and Andrii Kosogov. But VEON sold its Russian assets at the end of 2023 and completely withdrew from the Russian market.
According to the media, an important role in the process of receiving foreign investments is played by Mike Pompeo – a serious player in the Trump team, former US Secretary of State and former head of the CIA. In November last year, he assumed the position of independent non-executive director of Kyivstar.
“Acting as an independent member of VEON’s board, Pompeo told reporters that he welcomed the proposed takeover of the company by such American private equity giants as Blackstone, KKR and Carlyle, and that VEON’s former controlling shareholder, sanctioned Russian oligarch Mikhail Fridman, had fully exited VEON,” – writes the publication.
Also in the publication Capitol Intelligence Group it is claimed that the acquisition of VEON by the said investment funds is welcomed by the US Secretary of Commerce, the President of the World Bank and the European Bank for Reconstruction and Development.
The publication reminds that, in parallel with the seizure of part of Kyivstar’s shares, a similar case was initiated against Lifecell, but later, in this seemingly identical situation, the Ukrainian state lifted the seizure of Lifecell’s corporate rights. As a result, the company successfully changed its owner and transferred to the French holding “NJJ Capital”.
“Now we have enough reasons to assume that Kyivstar is repeating the fate of Lifecell. After the value of VEON is agreed between all interested parties, the seizure of 47.85% of Kyivstar’s corporate rights will be lifted.
What the Kyivstar Shares Seizure Means for Users and Ukraine
What does the sale of VEON to new owners mean for Ukraine and its citizens “The change in the composition of the shareholders will not affect the subscribers of Kyivstar and the operator itself,” the journalists note.
We would like to remind you that currently the global digital operator VEON, which is the sole shareholder of the Kyivstar company, is challenging the seizure of Kyivstar’s corporate rights in court.
In its submissions to the court, VEON claims that Fridman, Aven and Kosogov, against whom the sanctions were directed, do not own shares in VEON or Kyivstar.Despite the optimism around lifting the seizure order, legal complications remain. Ukrainian courts are still reviewing earlier claims of indirect Russian ownership through sanctioned individuals. However, VEON’s exit from the Russian market, along with high-profile Western support, strengthens its legal position. Sources suggest pressure from international financial institutions may accelerate a favorable resolution to avoid deterring future foreign investment in Ukraine’s strategic sectors.
Conclusion
If the deal with American firms goes through, it could lead to more Western capital inflows into Ukraine’s privatized services sector, reinforcing economic independence. For subscribers, Kyivstar operations are expected to remain unchanged. However, the success of this transaction could set a precedent for future state interventions and foreign buyouts in sensitive industries.
