VEON, the telecommunications multinational formerly known as VimpelCom, has announced its plans to sell its Russian assets by October 13. The company currently operates in Russia, Bangladesh, Kazakhstan, Kyrgyzstan, Pakistan, Uzbekistan, and Ukraine.
VEON CEO Kaan Terzioglu expressed satisfaction with the progress made in the exit from the Russian market, stating that the exit strategy is the optimal solution for all stakeholders, including customers, employees, creditors, and investors worldwide. The sale of the assets will be paid for by Russian investors through the transfer of bonds to VEON, which will be held until redemption or annulment.
Approximately 95% of these bonds have been agreed to be transferred to VEON Holdings, with the remaining bonds to be transferred after regulatory approval. It is expected that all necessary formalities will be settled by the due date of VEON Holding’s bonds on October 13.
In late June, it was announced that VEON would exit the Russian market within a few months. VEON recorded a depreciation of its Russian business by $448 million based on the Q1 2022 results. In May, the company received permission from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) to sell its Russian assets.