International banks such as Citigroup, ING and JPMorgan are “reviewing their relationship” with the Dutch telecommunications group Veon, after one of its largest shareholders, the Russian tycoon Míjail Fridman, has been sanctioned by the European Union (EU), according to the British newspaper Financial Times (FT).
LetterOne, the investment vehicle that Fridman founded in 2013, and of which he still owns a significant number of shares, controls 48% of Veon, a Dutch telecommunications company that obtains most of its income in Russia, according to the British media.
The magnate resigned last week as CEO of LetterOne, being included in the community list of people close to the Kremlin sanctioned as punishment for the Russian invasion of Ukraine.
In March last year, Veon signed a $1.25 billion revolving credit facility with 10 international banks, a plan coordinated by Citi that includes Crédit Agricole, JPMorgan, Société Générale, Barclays and Raiffeisen.
The parent company and its subsidiaries also have other credits with Western entities, including the Ukrainian branch of the company, says FT.
The British newspaper indicated that the entities with which the Veon teleco has a relationship declined to comment on the situation.
On Friday, the Fitch agency downgraded the Dutch company’s credit rating from BBB- (low approval) to B+, four steps below and within the “junk bond” category.
Source: Gestion
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