Veon received approval from regulators in Russia for the proposed RUB130 billion ($1.8 billion) sale of its operations in the country, paving the way for the deal to be completed on or before 1 June 2023.

Veon stated the regualatory body in charge of foreign investments in Russia issued its approval for the sale of the operations, which is being taken over by senior members of the local management team of its subsidiary PJSC VimpelCom, led by CEO Alexander Torbakhov through an investment vehicle.

Veon struck the deal to sell the business, which operates mobile operator Beeline, in November 2022. Its move will see it join several other international players in the sector to cut ties in Russia following the invasion of Ukraine.

Optimal solution
After receiving approval for the sale, Kaan Terzioglu, CEO of Veon, said the sale of the business “represents the optimal solution” for the operator and all stakeholders both inside and outside of Russia.

“We are pleased to have reached this significant milestone in the transaction which is expected to be accretive to equity, reduce Veon’s debt and improve its credit profile,” he added.

Reducing debt aside, the sale of its business in Russia is expected to have significant impact on Veon’s financials, as the business contributed to more half of the company’s group revenue in 2021.