3Q22 Results and Portfolio Strategy
EXECUTIVE SUMMARY (2/4)
Russian Regulatory Backdrop
VEON
On 5 July 2022, the President of the Russian Federation issued Decree 430, which states that "Russian legal entities with obligations related to Eurobonds
are required to ensure the fulfilment of obligations to holders of Eurobonds whose rights are recorded by Russian depositaries"
Although the Notes have been issued by the Company and PJSC VimpelCom is neither a co-obligor nor a guarantor under the Notes, on 20
September 2022, PJSC Vimpel Com received correspondence from the Russian Ministry of Finance (the "Russian MinFin") where the Russian MinFin
stated that it "consider[s] it appropriate that PJSC VimpelCom ensure the fulfilment of obligations under [the Notes] ... to holders of Eurobonds whose rights
are recorded by Russian depositaries"
In addition, the Russian MinFin requested PJSC VimpelCom to provide information on payments made with respect to the Notes
Certain Russian bondholders have also commenced legal proceedings in Russia against PJSC VimpelCom requesting PJSC VimpelCom to pay
under certain Notes
On 23 November 2022, the Russian Central Bank issued clarification that that these obligations under Decree 430 would also apply to a Russian legal
entity in the same Group as a Eurobond issuer with holders whose rights are recorded by Russian depositaries, confirming the position of the
Russian MinFin that Decree 430 would also apply to PJSC VimpelCom
VEON is currently assessing the potential impact of this obligation on PJSC VimpelCom as a matter of Russian law to assume direct responsibility for
the discharge of the Notes held through Russian depositaries and potential solutions to the same
In the event that PJSC VimpelCom were to make principal or interest payments directly to beneficial owners of the Notes that are held through
Russian depositaries, the Group has no comfort that the clearing systems would recognise the payment by PJSC VimpelCom as being good discharge
of the Company's payment obligations (and the trust deeds do not otherwise make provision for recognising such payments)
Accordingly, as matters stand, it is possible that PJSC VimpelCom and VEON Holdings B.V. could both be required to make material payments in
respect of the same amounts of interest and principal due on 2023 Notes held through Russian depositoriesView entire presentation