Boosting Ukraine's Telecom Resilience Amid Conflict

The European Bank for Reconstruction and Development and the International Finance Corporation are investing $435 million in Ukraine's telecom industry. This project, the largest foreign investment since Russia's invasion, aims to strengthen Ukraine's digital infrastructure by merging Lifecell and Datagroup-Volia into the nation's second-largest telecom operator.

The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) have announced a significant financial investment in Ukraine's telecom sector, amounting to $435 million. This initiative represents the largest foreign investment since the onset of the Russian invasion in February 2022.

A consortium led by French billionaire Xavier Niel successfully completed the merger of mobile operator Lifecell and service provider Datagroup-Volia. Through this transaction, backed by a $217.5 million contribution each from EBRD and IFC, the newly formed entity becomes Ukraine's second-largest telecom operator.

By supporting this merger, the EBRD and IFC aim to enhance network efficiency, improve digital connectivity, and send a reassuring signal to global investors about Ukraine's economic resilience. The move not only fortifies the nation's telecom infrastructure but also paves the way for future growth amidst ongoing challenges like energy shortages.

(With inputs from agencies.)