Mike Pompeo Joins Kyivstar's Board of Directors to ‘Safeguard American Investors'

Mike Pompeo has joined the Board of Directors of the Ukrainian mobile operator Kyivstar, according to a press release from the parent company, Veon.

The former Secretary of State under the administration of Donald Trump, joins the seven-member supervisory board as an independent non-executive director, primarily as a partner of the recently formed American investment company Impact Investments, providing strategic and financial consulting services.

Supervisory board member Dmytro Shimkiv said their powers include the formation of a development strategy, investments, analysis of operational activities, and relations with authorities and investors.

"I am delighted to welcome Secretary Pompeo to the Board of this outstanding company, that he joins with strong support from our various US stakeholders," said Veon Group CEO Kaan Terzioglu.

"We look forward to the knowledge and experience that Secretary Pompeo will contribute to Kyivstar as an active and independent member of the Kyivstar Board,” he added.

At the same time, Terzioglu returned to the position of Chair of the Kyivstar Board of Directors, which he held until September last year.

On Oct. 6, Ukraine’s Security Service (SBU) announced the seizure of all “corporate rights” of Kyivstar in relation to sanctions placed over three Russian oligarchs, meaning that the government would take control over 99 percent of the telecommunications company’s authorized capital.

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The court later amended the ruling, claiming that only 47.8 percent of Kyivstar’s “corporate rights” are subjected to government seizure, corresponding to the number of shares the oligarchs controlled through LetterOne, a UK fund founded by the three wanted oligarchs.

In a press release, Veon assured that the sale of its Russian subsidiary was completed on October 9. The company also emphasized its intention to invest $600 million in Ukraine within three years.

“VEON has made the clear choice to serve Ukraine through its wholly owned subsidiary Kyivstar, whose heroes have kept Ukraine and Ukrainians connected through the darkest days of war and who continue to serve Ukraine by maintaining 94% mobile network availability,” said Terzioglu.

"Kyivstar" CEO Oleksandr Komarov told Forbes Ukraine that "Pompeo will first of all represent the interests of American investors."

Terzioglu previously stated that international investors are concerned about the recent seizure of part of Kyivstar's corporate rights. Terzioglu expressed hope that the rights of foreign investors are properly protected in Ukraine.

Veon has thousands of private and corporate shareholders, and its shares are listed on two exchanges - NASDAQ and Euronext. Among the total number of shareholders, about 30% are citizens of the United States, Komarov noted earlier.

As CIA Director, Mike Pompeo emphasized that Russia is "aggressively reasserting its position" in the world. He also criticized the Russian Federation for the lack of efforts in the fight against the Islamic State terrorist group.

In 2018, while serving as US Secretary of State, Pompeo issued the Crimea Declaration, a document in the form of a press release confirming the non-recognition of Russia's annexation of the peninsula.

A long-term policy of refusing to recognize Russia's claims to territory seized by force in violation of international law was also announced.