VEON writes down assets in Kyrgyzstan

2 Nov 2020

Netherlands-headquartered, Russian-backed VEON has fully impaired the carrying value of its operating assets in Kyrgyzstan, where it controls cellco Sky Mobile (Beeline) via a 50.1% stake. In its Q3 2020 report, VEON stated that ‘due to the unstable political environment and uncertainties arising with respect to the recoverability of our operating assets in Kyrgyzstan, VEON has fully impaired the carrying value of all operating assets of Kyrgyzstan. As a result, the company recorded a total impairment loss of USD64 million, allocated against the carrying value of property and equipment (USD38 million), intangible assets (USD8 million) and other assets (USD18 million). A year previously, in 3Q19 VEON recorded an impairment of USD90 million against the carrying value of its Kyrgyzstan CGU [cash generating units] ‘due to operational underperformance’.

Kyrgyzstan, Sky Mobile (Beeline), VEON