This strategic initiative with the Ministry of Economy of Ukraine aims to fast-track digital infrastructure development, unlock scalable AI adoption, and underpin sustainable long-term economic growth.

KYIV, Ukraine, GDANSK, Poland and NEW YORK, June 26, 2026 (GLOBE NEWSWIRE) -- Kyivstar Group Ltd. ("Kyivstar") (NASDAQ:KYIV, KYIVW)), the parent company of JSC Kyivstar, Ukraine’s leading digital operator and part of VEON Group (NASDAQ:VEON), announced the signing of a Memorandum of Understanding (MOU) between Kyivstar, VEON, and the Ministry of Economy of Ukraine to advance the development of Ukraine’s digital infrastructure and economy. The collaboration includes exploring the establishment of a sovereign, AI-ready data center in Ukraine.

Left to right: Marine Babayan, Chief Corporate Affairs Officer Veon; Oleksii Sobolev, Minister of Economy of Ukraine; Oleksandr Komarov, President of Kyivstar Group

^{Left to right: Marine Babayan, Chief Corporate Affairs Officer Veon; Oleksii Sobolev, Minister of Economy of Ukraine; Oleksandr Komarov, President of Kyivstar Group}

The MOU was signed at the 2026 Ukraine Recovery Conference in Gdańsk, co-hosted by Poland and Ukraine, underscoring international commitment to Ukraine’s reconstruction and long-term economic growth. The initiative is aimed at developing next-generation computing infrastructure, strengthening Ukraine’s technological sovereignty in artificial intelligence, and catalyzing both domestic and international investment into the country’s digital economy.

The proposed facility would represent a sovereign AI data center, ensuring that critical data processing and storage remain within Ukraine. This is particularly important for sensitive sectors such as public administration, financial services, defense technology, and research and development. By enabling secure, in-country data capacity aligned with national regulatory and security frameworks, the project would enhance resilience, safeguard critical information, and unlock new innovation opportunities.

"The development of domestic AI infrastructure is an important step in strengthening Ukraine’s economic resilience and technological independence," said Oleksii Sobolev, Minister of Economy of Ukraine. "We see strong potential in initiatives that enable secure, sovereign data processing capacity within the country, supporting both public sector modernization and private sector innovation."

Demand for AI infrastructure in Ukraine is increasing and is driven by the global expansion of artificial intelligence and a shift toward the practical application of AI models. This evolution is increasing the need for continuous access to computing resources across both public and private sectors, supporting use cases ranging from finance and healthcare to analytics and public services. As a result, demand for local, scalable computing capacity in Ukraine continues to grow.

"The development of artificial intelligence is already creating a new level of demand for computing infrastructure, and its practical use is expanding rapidly in everyday services," said Oleksandr Komarov, President of Kyivstar Group. "This reinforces the need for countries to build local AI infrastructure to stay competitive globally, and we are focused on advancing this in Ukraine. Kyivstar has long partnered with the government to develop Ukraine’s digital infrastructure, consistently investing in networks, technologies, and expertise. As we explore this project, Kyivstar would aim to fund and phase any investment within our existing capital expenditure plans, maintaining our capital allocation discipline."

"Ukraine is showing the world what a digital economy built for resilience looks like," said Kaan Terzioglu, Chief Executive Officer of VEON Group. "Sovereign AI infrastructure keeps a country’s most important data and capabilities at home, where they create the most value for its people and its economy. Through our AI1440 strategy, we are bringing augmented intelligence into everyday life across our markets, and supporting this data center is a natural extension of that commitment in Ukraine."

Hosting an AI data center in Ukraine would enable minimal data transmission latency and support the fast operation of AI solutions, which is particularly important in sectors where response time is critical, including industrial facilities, robotic systems and real-time services. Under the MOU, Kyivstar has expressed its intention to explore investment in the country’s AI computing market while continuing to support its broader economy.

The project is expected to require long-term investment, advanced technical expertise and a reliable energy supply. Partnership between strategic investors and the government will play a critical role, and Kyivstar’s participation as one of the country’s largest infrastructure investors represents the foundation for scaling AI infrastructure at the national level. VEON is expected to support implementation of the project through its financial support and global expertise.

The initiative is intended to lay the foundation for the development of a new generation of data centers and strengthen Ukraine’s position as a regional technology hub.

About Kyivstar Group Ltd.

Kyivstar Group Ltd. is a Nasdaq-listed holding company that operates Kyivstar, Ukraine’s leading digital operator and the first Ukrainian company to list on a U.S. stock exchange. Kyivstar Group Ltd.’s companies provide a broad range of connectivity and digital services, including mobile and fixed-line voice and data, ride-hailing, e-health, digital TV, and enterprise solutions such as Big Data, cloud, and cybersecurity.

For more information, please visit https://investors.kyivstar.ua.

Nasdaq tickers: KYIV; KYIVW

About JSC Kyivstar

JSC Kyivstar is Ukraine’s leading digital operator, serving more than 22 million mobile customers and over 1.2 million home internet fixed line customers as of March 31, 2025. The company provides services using a wide range of mobile and fixed technologies, including 4G, Big Data, cloud solutions, cybersecurity services, digital TV, and more.

JSC Kyivstar is wholly owned by Kyivstar Group Ltd. (NASDAQ:KYIV, KYIVW)), whose shares are traded on the U.S. stock exchange Nasdaq.

Additional information: pr@kyivstar.net, www.kyivstar.ua.

About VEON

VEON is a digital operator that provides connectivity and digital services to over 150 million connectivity customers and more than 228 million digital users. Operating across five countries that are home to more than 6% of the world's population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth.

AI1440 is VEON's group-wide strategy to embed artificial intelligence across its operations and consumer and enterprise offerings, augmenting human capabilities and creating economic value throughout its markets. The name reflects VEON's ambition to apply AI throughout all 1,440 minutes of the day.

VEON is listed on NASDAQ under the ticker VEON. For more information, visit: https://www.veon.com.

VEON media contact

pr@veon.com

Disclaimer

This press release contains "forward-looking statements," as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements relating to, among other things, signing the Memorandum of Understanding between Kyivstar and the Ministry of Economy, Environment and Agriculture of Ukraine. There are numerous risks and uncertainties, many of which Kyivstar cannot predict with accuracy or even anticipate, and which could cause actual results and performance to differ materially from those expressed by such statements, including risks relating to Kyivstar’s ability to achieve anticipated results and business objectives, among others discussed in the section entitled "Risk Factors" included in Kyivstar’s annual report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on March 16, 2026, as amended and supplemented from time to time, and in any other subsequent filings with the SEC by Kyivstar. Kyivstar disclaims any obligation to update or revise any forward-looking statements contained in this press release, other than to the extent required by applicable law.

Contact information

Kyivstar Group Ltd

Investor Relations

ir@kyivstargroup.com

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Kyivstar and VEON Partner with Ministry of Economy, Environment and Agriculture of Ukraine to Accelerate AI Infrastructure and Digital Economy Growth