Company: KYIV
Filing Date: 2025-04-18
Form Type: DRS
Source: 0001213900-25-033341
Chunk: 324

Company: Kyivstar Group Ltd.
Filing Date: 2025-04-18
Form: DRS
Chunk 324
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 suppliers, which arise directly from its operations. For more information, please refer to Note 16 — Financial Risk Managementof our audited combined financial statements included elsewhere in this proxy statement/prospectus.

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Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. We are exposed to credit risk from our operating activities, primarily in respect of trade receivables, and from our treasury activities, including deposits with banks and financial institutions, derivative financial instruments and other financial instruments. Financial instruments, which potentially expose us to significant concentrations of credit risk, consist principally of cash in bank, short -termdeposits, and trade and other receivables. Our maximum credit risk exposure as of December 31, 2024 was $1,179million and comprised cash and cash equivalents, a loan receivable from the Seller, security deposits and cash collateral, trade and other receivables, current financial investments and financial assets at fair value. Our cash and deposits are primarily held in banks located in Ukraine. As of December 31, 2024, 55% of cash and cash equivalents were held in three banks. The cash and cash equivalents retained by Cohen Circle in accordance with the Demerger relates to bank accounts of VEON. In addition, our analysis by credit quality of cash and cash equivalents is based on credit ratings as published by the credit rating agency Fitch Ratings Inc. (“Fitch”). For cash and cash equivalents, we assessed our expected credit loss based on Fitch’s rating for rated banks and based on the sovereign rating of Ukraine. Based on our assessment, we concluded that the identified impairment loss was immaterial. Further, our accounts receivable are presented net of allowances. We do not require collateral for trade receivables, and we have a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed for all customers requiring credit over a certain amount. Credit risk arising from financial transactions is reduced through diversification, accepting counterparties with high credit ratings only and defining limits on aggregated credit exposure towards each counterparty. Our credit risk exposure is monitored and analyzed on a case -by -casebasis, and we believe that credit risk is appropriately reflected in impairment allowances recognized against assets. Our maximum exposure to credit risk for the components of the statement of financial position at December 31, 2024 and 2023 is the carrying amount. Foreign currency exposure Foreign currency risk is the