Kyivstar is the largest mobile communications provider in Ukraine with around 25 million customers. For me, the share is a clear bet on peace - and highly speculative.
Why is it exciting?
- Market leader: Telecommunications are a basic service - demand remains high even in times of war.
- Reconstruction story: After a possible peace, billions will flow into the infrastructure. Kyivstar benefits directly.
- EU perspective: With closer ties to the EU, Ukraine will become a growth market. Kyivstar would be one of the biggest levers for this.
Risks:
- War destroys networks and causes high costs.
- Political instability and corruption can put the brakes on investment.
- Currency risk: The hryvnia is heavily dependent on international aid.
- Cyber attacks: As a critical infrastructure, Kyivstar is a prime target for hackers and government attacks - with potential outages lasting days in some cases.
- Illiquid trading: The share is illiquid and highly volatile.
Conclusion: Kyivstar is not a classic dividend stock for a conservative portfolio. It is more of a moonshot that is deliberately underweighted - with the chance of a multiple in the event of success, but also the risk of a total loss.