Telecommunications holding company VEON reported an increase in the amount of dividends and interest payments from its Ukrainian subsidiary Kyivstar, which are blocked due to the current restrictions of the National Bank on capital movements.
Telecommunications holding company VEON reported an increase in the amount of dividends and interest payments from its Ukrainian subsidiary Kyivstar, which are blocked due to the current restrictions of the National Bank on capital movements.
According to information in VEON’s 2025 annual report, as of the end of 2025, the amount of dividends blocked in Ukraine had increased to $458 million. The company states that currency restrictions introduced by the NBU in connection with martial law after the start of the full-scale Russian invasion continue to operate and significantly affect the group’s financial flows.
The amount of blocked dividends indicated by VEON indicates a gradual increase: if as of December 31, 2024, the amount was $437 million, then over the year it increased by $21 million.
The report notes that the parent company Kyivstar Holdings BV does not expect to receive significant payments in the near future. This directly affects the holding’s liquidity, but the blocked funds remain freely available to support Kyivstar’s domestic operations.
«It is currently impossible to predict how long martial law in Ukraine will last. As a result of the above, we do not expect Kyivstar Holdings BV, the immediate parent company of Kyivstar JSC, to receive interest or significant dividends in the near future, which may negatively affect the liquidity forecast of Kyivstar Group Ltd,» VEON indicates.
Resources are currently being directed towards the energy independence program. The company continues to invest hundreds of millions of hryvnias in the purchase of industrial batteries, generators, and modernization of power systems to ensure the operation of the network during possible blackouts caused by Russian attacks.
In December last year, Kyivstar announced that it was starting to invest in the alternative energy sector and announced the acquisition of 100% of the corporate rights of LLC «SANVIN 11» — the owner of an operating solar power plant in the Zhytomyr region. In the spring of 2026, it became known that it plans to acquire six solar power plants in the Lviv region. The cost of the deal could be about $50 million.
In parallel with infrastructure support, Kyivstar is actively expanding its business beyond telecommunications through strategic acquisitions. Earlier, VEON officially announced the completion of the deal to acquire 100% of the shares of the popular medical service Tabletki.ua for $160 million. Prior to this, Kyivstar closed the deal to purchase the Uklon service for $155 million, which became one of the largest deals on the market.
