Kyivstar Expands Backup Power Amid Grid Strain
- Ukrainian telecom strengthens resilience as energy attacks intensify
Ukraine’s largest telecom operator, Kyivstar, is stepping up efforts to keep its network online as Russian strikes continue to damage the country’s energy infrastructure. CEO Oleksandr Komarov said more than 3,500 stationary generators are now connected in real time to support operations. He noted that each new attack reduces the margin of tolerance in the grid, forcing the company to expand backup capacity further. The measures are part of a broader strategy to ensure connectivity during prolonged outages.
Strengthening Network Resilience
Since 2022, Kyivstar has invested in making its systems more resistant to power disruptions. Core network components now have backup power capable of lasting up to three days. In residential areas, over 90,000 local connection boxes have been fitted with solutions that allow them to function for 10 to 12 hours without electricity. These steps help maintain service continuity for most customers even during extended blackouts.
Komarov emphasized that the company’s only viable response to repeated strikes is to keep increasing generator capacity. The approach reflects the growing importance of telecom infrastructure in wartime conditions. Reliable communication remains critical for both civilians and government operations. Kyivstar’s resilience strategy highlights the intersection of technology and national security.
Market Listing and Investor Sentiment
In August, Kyivstar became the first Ukrainian company to list on a U.S. stock exchange. Initial optimism has since been tempered by geopolitical volatility affecting its valuation. Komarov said meetings with U.S. institutional investors suggest the company is seen as “significantly undervalued” given the circumstances. Parent company Veon, which holds an 89.6% stake, is working with the Ukrainian government to allow local retail investors to participate in share purchases.
Veon CEO Kaan Terzioglu noted that further dilution of ownership is possible as part of these efforts. Despite the challenges, Kyivstar reported a nearly 20% rise in third-quarter revenue to $297 million. Growth was driven by increased use of digital services among Ukrainian customers. Komarov credited macroeconomic stability, central bank policies, and international support for helping stabilize the local currency.
Financial Performance Amid Conflict
The company’s revenue increase demonstrates resilience despite ongoing conflict and infrastructure strain. Digital services have become a key driver of growth, reflecting changing consumer behavior during wartime. Kyivstar’s ability to maintain operations under pressure has reassured some investors, though uncertainty remains high. The firm continues to balance immediate operational needs with long-term market positioning.
Kyivstar’s parent company Veon previously exited Russia in 2023, selling its operations there to focus on other markets. The move underscored the company’s strategic pivot toward Ukraine and emerging economies, aligning with its efforts to strengthen Kyivstar’s role as a critical telecom provider during the war.
