VEON announced its intention to move its group parent company to the United Kingdom, with the introduction of a newly formed UK incorporated public limited company as the top holding company of the VEON Group.

It is expected that the new UK Parent Company will replace VEON Ltd, a Bermuda incorporated company as the VEON Group’s parent company.

It is expected that the change will provide the company with the necessary flexibility vis-a-vis current and future tightening of regulatory requirements in many of its markets of operation, including Russia. Recently Russia introduced a law introducing certain conditions for companies participating in Russian state and municipal procurement tenders or contracts.

“We are not anticipating any adverse tax consequences as a result of this change. In addition, we do not anticipate any material changes to the VEON Group’s corporate governance framework, including its existing board and committee structure,” VEON said.

“Establishing our new group parent company in the United Kingdom is another positive step forward as we continue to evolve our Group governance. This is particularly appropriate given the international nature of VEON and the current climate of tightening regulatory requirements across the globe,” said Gennady Gazin, VEON’s Chairman.