VEON telecom company to exit Russian market by October 13

14 September, 09:37 PM
Veon expects to finally leave Russia in October (Photo:Beeline via Facebook)

Veon expects to finally leave Russia in October (Photo:Beeline via Facebook)

Formerly known as VimpelCom, VEON telecommunications multinational has finalized plans to sell its Russian assets by Oct. 13, the company said in a press release on Sept. 13.

VEON currently operates in Russia, Bangladesh, Kazakhstan, Kyrgyzstan, Pakistan, Uzbekistan, and Ukraine — where it owns Kyivstar, a major Ukrainian mobile operator.

“I am pleased with the progress we have achieved in our exit from Russia despite the complexities of the transaction,” the message quotes VEON CEO Kaan Terzioglu.

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“Our exit strategy is the optimal solution for all our stakeholders – our customers, employees, creditors and investors world-wide. I would like to thank our stakeholders for their patience and continued support.”

The sale will be paid for by Russian investors transferring bonds to VEON, which will be held until redemption or annulment.

The company has agreed the transfer of approximately 95% of these bonds to VEON Holdings with U.S. and other national regulators. The remaining bonds will be transferred to the holding after regulatory approval. Approval may be granted after the deal closes.

The company expects that all necessary formalities will be settled by Oct. 13, the due date of VEON Holding's bonds.

In late June, Kyivstar President Oleksandr Komarov announced that VEON would exit the Russian market in a matter of months.

In June, VEON recorded a depreciation of its Russian business by $448 million, based on Q1 2022 results.

In May, VEON received permission from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) to sell its Russian assets.

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