VEON (VEON) 20-F15 Mar 182017 FY Annual report (foreign)Financial data

Company Profile

Document and Entity Information

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2017shares
Document and Entity Information [Abstract]
Entity Registrant Name	VEON Ltd.
Entity Central Index Key	1,468,091
Document Type	20-F
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	1,756,731,135
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED INCOME STATEMENT - USD ($) $ in Millions	12 Months Ended
CONSOLIDATED INCOME STATEMENT - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED INCOME STATEMENT
Service revenues	$ 9,105	$ 8,553	$ 9,313
Sale of equipment and accessories	244	184	190
Other revenues	125	148	103
Total operating revenues	9,474	8,885	9,606
Service costs	(1,879)	(1,769)	(1,937)
Cost of equipment and accessories	(260)	(216)	(231)
Selling, general and administrative expenses	(3,748)	(3,668)	(4,563)
Depreciation	(1,454)	(1,439)	(1,550)
Amortization	(537)	(497)	(517)
Impairment loss	(66)	(192)	(245)
Loss on disposals of non-current assets	(24)	(20)	(39)
Total operating expenses	(7,968)	(7,801)	(9,082)
Operating profit	1,506	1,084	524
Finance costs	(935)	(830)	(829)
Finance income	95	69	52
Other non-operating losses, net	(97)	(82)	(42)
Share of (loss) / profit of joint ventures and associates	(412)	48	14
Impairment of joint ventures and associates	(110)	(99)
Net foreign exchange (loss) / gain	(71)	157	(314)
(Loss) / profit before tax	(24)	347	(595)
Income tax expense	(472)	(635)	(220)
Loss for the year from continuing operations	(496)	(288)	(815)
Profit after tax for the period from discontinued operations		920	262
Gain on disposal of discontinued operations, net of tax		1,788
Profit for the period from discontinued operations		2,708	262
(Loss) / profit for the period	(496)	2,420	(553)
The owners of the parent (continuing operations)	(483)	(380)	(917)
The owners of the parent (discontinued operations)		2,708	262
Non-controlling interest	$ (13)	$ 92	$ 102
Earnings / loss per share
Basic and diluted from continuing operations	$ (0.28)	$ (0.22)	$ (0.52)
Basic and diluted from discontinued operations	0	1.55	0.15
Basic and diluted for (loss) / profit attributable to ordinary equity holders of the parent	$ (0.28)	$ 1.33	$ (0.37)

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Loss) / profit for the period	$ (496)	$ 2,420	$ (553)
Items that may be reclassified to profit or loss (net of tax, see Note 11)
Net movement on cash flow hedges	4	7	13
Share of other comprehensive loss of joint ventures	(12)
Foreign currency translation	(638)	85	(1,836)
Other	(11)	6	31
Items reclassified to profit or loss (net of tax)
Reclassification of accumulated foreign currency translation reserve to profit or loss on disposal of discontinued operation (net of tax of US$nil)		(259)
Reclassification of accumulated cash flow hedge reserve to profit or loss on disposal of discontinued operation (net of tax of US$7 for 2016)		53
Other comprehensive loss for the period, net of tax	(657)	(108)	(1,792)
Total comprehensive (loss) / income for the period, net of tax	(1,153)	2,312	(2,345)
Attributable to:
The owners of the parent	(1,060)	2,233	(1,727)
Non-controlling interests	(93)	79	(618)
Total comprehensive (loss) / income for the period, net of tax	$ (1,153)	$ 2,312	$ (2,345)

CONSOLIDATED STATEMENT OF COMP4

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Tax expense on reclassification of accumulated foreign currency translation reserve to profit or loss on disposal of discontinued operation	$ 0
Tax expense on reclassification of accumulated cash flow hedge reserve to profit or loss on disposal of discontinued operation	$ 7

CONSOLIDATED STATEMENT OF FINAN

CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Non-current assets
Property and equipment	$ 6,097	$ 6,719
Intangible assets	2,168	2,257
Goodwill	4,394	4,696
Investments in joint ventures and associates	1,921	2,179
Deferred tax assets	272	343
Non-current income tax advance	28	25
Other financial assets	34	306
Other assets	199	118
Total non-current assets	15,113	16,643
Current assets
Inventories	72	125
Trade and other receivables	745	685
Other assets	394	439
Current income tax assets	230	169
Other financial assets	1,130	190
Cash and cash equivalents	1,304	2,942
Total current assets	3,875	4,550
Assets classified as held for sale	533
Total assets	19,521	21,193
Equity
Equity attributable to equity owners of the parent	4,352	5,960
Non-controlling interests	(425)	83
Total equity	3,927	6,043
Non-current liabilities
Financial liabilities	10,362	8,070
Provisions	116	148
Other liabilities	83	44
Deferred tax liabilities	376	331
Total non-current liabilities	10,937	8,593
Current liabilities
Trade and other payables	1,523	1,744
Other liabilities	1,346	1,236
Other financial liabilities	1,268	3,046
Current income tax payables	48	57
Provisions	422	474
Total current liabilities	4,607	6,557
Liabilities associated with assets held for sale	50
Total equity and liabilities	$ 19,521	$ 21,193

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions	Issued capital	Capital surplus	Other capital reservesLLC Sky Mobile and LLP KaR-Tel	Other capital reserves	Accumulated deficit	Foreign currency translation	TotalLLC Sky Mobile and LLP KaR-Tel	Total	Non-controlling interestsLLC Sky Mobile and LLP KaR-Tel	Non-controlling interests	LLC Sky Mobile and LLP KaR-Tel	Total
Equity at beginning of period at Dec. 31, 2014	$ 2	$ 12,746		$ 84	$ (1,990)	$ (5,836)		$ 5,006		$ (1,030)		$ 3,976
Number of shares outstanding at beginning of period at Dec. 31, 2014	1,748,598,146
(Loss) / profit for the period					(655)			(655)		102		(553)
Other comprehensive income (loss)				43		(1,115)		(1,072)		(720)		(1,792)
Total comprehensive (loss) / income for the period, net of tax				43	(655)	(1,115)		(1,727)		(618)		(2,345)
Dividends declared					(61)			(61)		(188)		(249)
Sale of 51% shareholding in Omnium Telecom Algerie, net of tax of US$350				644				644		1,607		2,251
Share-based payment transactions and exercise of stock options		7		(6)				1				1
Share-based payment transactions and exercise of stock options (in shares)	406,502
Changes in a parent's ownership interest in a subsidiary that do not result in a loss of control			$ (98)				$ (98)		$ 358		$ 260
Equity at end of period at Dec. 31, 2015	$ 2	12,753		667	(2,706)	(6,951)		3,765		129		3,894
Number of shares outstanding at end of period at Dec. 31, 2015	1,749,004,648
(Loss) / profit for the period					2,328			2,328		92		2,420
Other comprehensive income (loss)				63		(158)		(95)		(13)		(108)
Total comprehensive (loss) / income for the period, net of tax				63	2,328	(158)		2,233		79		2,312
Dividends declared					(61)			(61)		(106)		(167)
Changes in a parent's ownership interest in a subsidiary that do not result in a loss of control				23				23		(19)		4
Equity at end of period at Dec. 31, 2016	$ 2	12,753		753	(439)	(7,109)		5,960		83		6,043
Number of shares outstanding at end of period at Dec. 31, 2016	1,749,004,648
(Loss) / profit for the period					(483)			(483)		(13)		(496)
Other comprehensive income (loss)				(18)		(559)		(577)		(80)		(657)
Total comprehensive (loss) / income for the period, net of tax				(18)	(483)	(559)		(1,060)		(93)		(1,153)
Dividends declared					(536)			(536)		(168)		(704)
Share-based payment transactions (in shares)	122,756
Changes in a parent's ownership interest in a subsidiary that do not result in a loss of control				(12)				(12)		(247)		(259)
Reallocation to legal reserve in Algeria				6	(6)
Equity at end of period at Dec. 31, 2017	$ 2	$ 12,753		$ 729	$ (1,464)	$ (7,668)		$ 4,352		$ (425)		$ 3,927
Number of shares outstanding at end of period at Dec. 31, 2017	1,749,127,404

CONSOLIDATED STATEMENT OF CHAN7

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - Omnium Telecom Algerie $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Percentage of interest in subsidiary	51.00%
Tax expense on gains (losses)	$ 350

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities
(Loss) / profit before tax	$ (24)	$ 347	$ (595)
Non-cash adjustments to reconcile profit before tax to net cash flows:
Depreciation	1,454	1,439	1,550
Amortization	537	497	517
Impairment losses	66	192	245
Loss on disposals of non-current assets	24	20	39
Finance costs	935	830	829
Finance income	(95)	(69)	(52)
Other non-operating losses, net	97	82	42
Share of loss/ (profit) of joint ventures and associates	412	(48)	(14)
Impairment of joint ventures and associates	110	99
Net foreign exchange loss / (gain)	71	(157)	314
Changes in trade and other receivables and prepayments	(168)	(129)	(287)
Changes in inventories	54	(13)	(43)
Changes in trade and other payables	311	(107)	173
Changes in provisions and pensions	(119)	(645)	(185)
Interest paid	(834)	(789)	(807)
Interest received	89	63	49
Income tax paid	(445)	(420)	(671)
Net cash flows from operating activities of discontinued operations		683	929
Net cash flows from operating activities	2,475	1,875	2,033
Investing activities
Proceeds from sale of property and equipment and intangible assets	8	15	18
Purchase of property and equipment and intangible assets	(2,037)	(1,651)	(2,207)
Loans granted	(2)		(102)
Repayment of loans granted			101
(Payment on) / receipts from deposits	(898)	19	(361)
(Investment in) / redemption of financial assets	(99)	(87)	74
Acquisition of subsidiaries, net of cash acquired		7	(17)
Proceeds from sale of subsidiaries, net of cash disposed	12	(325)
Net cash flow used in investing activities of discontinued operations		(649)	(140)
Net cash flows used in investing activities	(3,016)	(2,671)	(2,634)
Financing activities
Net proceeds from exercise of share options and purchase of treasury shares			2
Acquisition of non-controlling interests	(259)	(5)	(4)
Proceeds from borrowings, net of fees paid	6,193	1,882	2,052
Repayment of borrowings	(5,948)	(1,816)	(4,840)
Dividends paid to owners of the parent	(518)	(61)	(61)
Dividends paid to non-controlling interests	(201)	(106)	(188)
Proceeds from sale of non-controlling interest, net of fees paid			2,307
Net cash flow used in financing activities of discontinued operations		(20)	(707)
Net cash flow used in financing activities	(733)	(126)	(1,439)
Net change in cash and cash equivalents	(1,274)	(922)	(2,040)
Net foreign exchange difference	(353)	(64)	(374)
Cash and cash equivalents classified as held for sale	(11)	314	(314)
Cash and cash equivalents at beginning of period	2,942	3,614	6,342
Cash and cash equivalents at end of period	$ 1,304	$ 2,942	$ 3,614

CONSOLIDATED STATEMENT OF CASH9

CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENT OF CASH FLOWS
Fees paid for borrowings	$ 56	$ 31	$ 6

GENERAL INFORMATION

GENERAL INFORMATION	12 Months Ended
GENERAL INFORMATION	Dec. 31, 2017
GENERAL INFORMATION
GENERAL INFORMATION	1 GENERAL INFORMATION VEON Ltd. ( "VEON" , the "Company" , and together with its consolidated subsidiaries, the "Group" ) was incorporated in Bermuda on June 5, 2009. The registered office of VEON is Victoria Place, 31 Victoria Street, Hamilton HM 10, Bermuda. VEON's headquarters and the principal place of business are located at Claude Debussylaan 88, 1082 MD Amsterdam, the Netherlands. The Company changed its name from VimpelCom Ltd. to VEON Ltd., effective as of March 30, 2017. The consolidated financial statements were authorized by the Supervisory Board for issuance on March 15, 2018. The Company has the ability to amend and reissue the consolidated financial statements. The consolidated financial statements are presented in United States dollars ( "U.S. dollar" or "US$ "). In these notes, U.S. dollar amounts are presented in millions, except for share and per share (or American Depository Shares ( "ADS" )) amounts and as otherwise indicated. VEON's ADSs are listed on the NASDAQ Global Select Market ( "NASDAQ" ). From April 4, 2017, VEON's common shares are listed on Euronext Amsterdam, the regulated market of Euronext Amsterdam N.V. (" Euronext Amsterdam "). Share information As of December 31, 2017, the Company's largest shareholders and remaining free float are as follows: Shareholder Common shares % of common L1T VIP Holdings S.à r.l. (" LetterOne ") % Telenor East Holding II AS (" Telenor ") % Stichting Administratiekantoor Mobile Telecommunications Investor * % Free Float % Total outstanding common shares % Shares held by the Company or its subsidiaries ( "Treasury shares" ) % * LetterOne is the holder of the depositary receipts issued by Stichting and is therefore entitled to the economic benefits (dividend payments, other distributions and sale proceeds) of such depositary receipts and, indirectly, of the 145,947,562 common shares represented by the depositary receipts. According to the conditions of administration entered into between Stichting and LetterOne ( "Conditions of Administration" ) in connection with the transfer of 145,947,562 ADSs from LetterOne to Stichting on March 29, 2016, Stichting has the power to vote and direct the voting of, and the power to dispose and direct the disposition of, the ADSs, in its sole discretion, in accordance with the Conditions of Administration and Stichting's articles of association. In April and September 2017, Telenor sold, respectively, 70,000,000 and 90,000,000 common shares of VEON Ltd. in the form of ADSs listed on NASDAQ and common shares listed on Euronext Amsterdam pursuant to an underwritten offering. The Company did not receive any proceeds from the offering, and Telenor's sale of the ADSs and common shares did not result in dilution of the Company's issued and outstanding shares. The offering was made pursuant to the Company's shelf registration statement on Form F-3 initially filed with the U.S. Securities and Exchange Commission (the "SEC" ) on May 23, 2014, as amended and most recently declared effective on April 20, 2016 (the "Registration Statement" ). The ADSs and common shares were offered by means of a prospectus and accompanying prospectus supplement forming a part of the effective Registration Statement. Telenor has indicated that these transactions will be the final divestment of Telenor's VEON ADSs, as Telenor expects to use the balance of its remaining ADSs to exchange and/or redeem Telenor's exchangeable bond. Nature of operations and principal activities VEON earns revenues by providing voice and data telecommunication services through a range of traditional and broadband mobile and fixed-line technologies. As of December 31, 2017, the Company operated telecommunications services in Russia, Pakistan, Algeria, Bangladesh, Ukraine, Uzbekistan, Kazakhstan, Armenia, Tajikistan, Georgia, Kyrgyzstan and Laos, and in Italy via a 50/50 joint venture. During the year 2017, several local currencies demonstrated significant volatility against the U.S. dollar, which impacted the Company's financial position and results of operations following the translation of non-U.S. currency amounts into U.S. dollars for consolidation purposes. In particular, in U.S. dollar terms, the fluctuations of local currencies caused a 3% increase in total revenue for the Group during 2017, as compared to 2016. In addition, on September 2, 2017, the Government of Uzbekistan announced the liberalization of currency exchange rules, effective from September 5, 2017. The Central Bank of Uzbekistan set the official exchange rate at 8,100 Uzbek som ( "UZS" ) per U.S dollar, a depreciation of 92%, resulting in a decrease in the value of net assets of the Uzbekistan operations in U.S. dollar terms. The effect of the foreign currency liberalization in Uzbekistan resulted in a loss of US$16 recognized in the Income statement (within 'Net foreign exchange gain / (loss)'), and a negative movement in foreign currency translation reserve of US$420, recognized in Other comprehensive income. In December 2017, the Company repatriated a net amount of approximately US$200 from Unitel LLC ( "Unitel" ), its wholly-owned subsidiary in Uzbekistan. The repatriation resulted in a foreign exchange loss of US$49.

BASIS OF PREPARATION OF THE CON

BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2017
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS	2 BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS BASIS OF PREPARATION These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( "IFRS" ) as issued by the International Accounting Standards Board, effective at the time of preparing the consolidated financial statements and applied by VEON. The consolidated income statement has been presented based on the nature of the expense, other than 'Selling, general and administrative expenses', which has been presented based on the function of the expense. The consolidated financial statements have been prepared on a historical cost basis, unless disclosed otherwise. Certain comparative amounts have been reclassified to conform to the current period presentation. BASIS OF CONSOLIDATION The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Subsidiaries are all entities (including structured entities) over which the Company has control. Please refer to Note 13 for a list of significant subsidiaries. Intercompany transactions, balances and unrealized gains or losses on transactions between Group companies are eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies. When the Group ceases to consolidate a subsidiary due to loss of control, the related subsidiary's assets (including goodwill), liabilities, non-controlling interest and other components of equity are de-recognized. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. Any consideration received is recognized at fair value, and any investment retained is re-measured to its fair value, and this fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest. Any resultant gain or loss is recognized in the income statement. FOREIGN CURRENCY TRANSLATION The consolidated financial statements of the Group are presented in U.S. dollars. Each entity in the Group determines its own functional currency and amounts included in the financial statements of each entity are measured using that functional currency. Upon consolidation, the assets and liabilities measured in the functional currency are translated into U.S. dollars at exchange rates prevailing on the balance sheet date; whereas revenue, expenses, gains and losses are translated into U.S. dollars at historical exchange rates prevailing on the transaction dates. Translation adjustments resulting from the process of translating financial statements into U.S. dollars are reported in other comprehensive income, a separate component of equity (i.e. cumulative translation adjustment).

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES THAT RELATE TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE	12 Months Ended
	Dec. 31, 2017
SIGNIFICANT ACCOUNTING POLICIES THAT RELATE TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE
SIGNIFICANT ACCOUNTING POLICIES THAT RELATE TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE	3 SIGNIFICANT ACCOUNTING POLICIES THAT RELATE TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE Accounting policies are included in the relevant notes to these consolidated financial statements. A number of new or amended standards became effective as of January 1, 2017. However, the Company did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards. As a result of amendments to IAS 7 'Statement of Cash Flows: Disclosure Initiative', the Group has provided disclosure regarding changes in liabilities arising from financing activities for the current period in Note 17. NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS NOT YET ADOPTED BY THE GROUP The following section outlines significant and relevant new standards that are issued, but not yet effective, up to the date of the issuance of the Group's financial statements, and which have not been early adopted by the Company. New accounting standards in 2018 The following table presents the transitional impact that adoption of IFRS 9, ' Financial Instruments ' ( "IFRS 9 ") and IFRS 15, 'Revenue from contracts with customers' ( "IFRS 15" ) is expected to have on the opening balance sheet of the Group, as of January 1, 2018. Further details regarding the impact of IFRS 9 and IFRS 15 can be found below. Impact of IFRS 9 Impact of Opening Classification Impairment Revenue and Adjusted opening Assets Non-current assets Investments in joint ventures and associates ) ) Deferred tax assets — ) Other financial assets Available for sale ) — — — Fair value through other comprehensive income — — — Other assets — — Current assets Trade and other receivables — ) — Other financial assets Available for sale ) — — — Fair value through other comprehensive income — — — Other assets — — ) Equity Equity attributable to equity owners of the parent ) ) Non-controlling interests ) — ) ) Liabilities Other liabilities (current) — — ) Deferred tax liabilities — ) IFRS 15 'Revenue from contracts with customers' IFRS 15 replaces IAS 18 'Revenue' and IAS 11 'Construction contracts' and related interpretations. IFRS 15 addresses revenue recognition for contracts with customers as well as treatment of incremental costs incurred to obtain a contract with a customer, described in more detail below. Revenue recognition Due to the nature of the Group's existing product offerings (i.e. prevailing pre-paid service offerings), as well as the Group's existing accounting policies (described in Note 8), the impact of IFRS 15 on revenue recognition by the Group will be immaterial, as shown in the table presented earlier in this Note. Costs of obtaining a contract with customer Under IFRS 15, certain incremental costs incurred in acquiring a contract with a customer ( "contract costs" ), which previously did not qualify for recognition as an asset under any of the other accounting standards, will be deferred in the consolidated statement of financial position. Such costs relate primarily to commissions paid to third-party dealers and will be amortized as revenue is recognized under the related contract, within the 'Selling, general and administrative expenses' line item within the income statement. The Group will apply the practical expedient available in IFRS 15 for contract costs for which the amortization would have been shorter than 12 months. Such costs relate primarily to commissions paid to third-party dealers upon top-up of prepaid credit by customers and sale of top-up cards. The expected impact of capitalizing contract costs upon implementation of IFRS 15 is shown in the table presented earlier in this Note. Transition The standard is effective for annual periods beginning on or after January 1, 2018. The Group will adopt the standard using the modified retrospective approach, which means that the cumulative impact of the adoption will be recognized in retained earnings as of January 1, 2018 and that comparatives will not be restated. The impact that adoption of IFRS 15 is expected to have on the opening balance sheet of the Group, as of January 1, 2018, is shown in the table presented earlier in this Note. IFRS 9 'Financial instruments' IFRS 9 replaces IAS 39 ' Financial instruments: Recognition and Measurement ' (" IAS 39 "). IFRS 9 impacts the Group's classification and measurement of financial instruments, impairment of financial assets and hedge accounting, described in more detail below. Classification and measurement The new standard requires the Company to assess the classification of financial assets on its balance sheets in accordance with the cash flow characteristics of the financial assets and the relevant business model that the Company has for a specific class of financial assets. IFRS 9 no longer has an "Available-for-sale" classification for financial assets. The new standard has different requirements for debt or equity financial assets. Debt instruments should be classified and measured either at: • Amortized cost, where the effective interest rate method will apply; • Fair value through other comprehensive income, with subsequent recycling to the income statement upon disposal of the financial asset; or • Fair value through profit or loss. Investments in equity instruments, other than those to which consolidation or equity accounting apply, should be classified and measured either at: • Fair value through other comprehensive income, with no subsequent recycling to the income statement upon disposal of the financial asset; or • Fair value through profit or loss. The company will continue to initially measure financial assets at its fair value plus transaction cost upon initial recognition, except for financial assets measured at fair value through profit and loss, consistent with current practices. The majority of the financial assets classification will not be impacted by the transition to IFRS 9 on January 1, 2018. The reclassifications upon transition to IFRS 9 are shown in the table presented earlier in this Note. Impairment (allowance for doubtful debt) IFRS 9 introduces the Expected Credit Loss model, which replaces the incurred loss model of IAS 39 whereby an allowance for doubtful debt was required only in circumstances where a loss event has occurred. By contrast, the Expected Credit Loss model requires the Company to recognize an allowance for doubtful debt on all financial assets carried at amortized cost (including, for example, 'Trade receivables'), as well as debt instruments classified as financial assets carried at fair value through other comprehensive income (for example, government bonds held for liquidity purposes), since initial recognition, irrespective whether a loss event has occurred. As a result, the allowance for doubtful debt of the Company will increase upon implementation of IFRS 9 on January 1, 2018. The expected impact of applying the Expected Credit Loss model is shown in the table presented earlier in this Note. Hedge Accounting IFRS 9 allows for more possibilities for the Company to apply hedge accounting (for example, risk components of non-financial assets or liabilities may be designated as part of a hedging relationship). In addition, the requirements of the standard have been more closely aligned with the Company's risk management policies and hedge effectiveness will be measured prospectively. Transition The Group will adopt the standard using the modified retrospective approach for classification and measurement and impairment. This means that the cumulative impact of the adoption will be recognized in retained earnings as of January 1, 2018 and that comparatives will not be restated. All hedge accounting relationships existing as of January 1, 2018 will be continued under IFRS 9. The Company will retrospectively adopt the cost of hedging approach for foreign currency basis spreads existing in cross-currency interest rate swaps used in a hedging relationship, the impact of which is immaterial to the consolidated financial results and position of the Group. IFRS 16, 'Leases' IFRS 16 replaces the IAS 17 Leases, the current lease accounting standard and will become effective on January 1, 2019. The new lease standard will require assets leased by the Company to be recognized on the statement of financial position of the Company with a corresponding liability. The Company is in the process of assessing the impact of IFRS 16 which is expected to have a material impact on the consolidated income statement and consolidated financial position upon adoption in 2019. IFRIC 23 'Uncertainty over income tax treatments' The Interpretation clarifies the application of recognition and measurement requirements in IAS 12 'Income Taxes' when there is uncertainty over income tax treatments. The Group has yet to assess the impact of IFRIC 23, which may be material to the consolidated income statement and consolidated financial position upon adoption in 2019. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS The preparation of these consolidated financial statements has required management to apply accounting policies and methodologies based on complex and subjective judgments, estimates based on past experience and assumptions determined to be reasonable and realistic based on the related circumstances. The use of these judgements, estimates and assumptions affects the amounts reported in the statement of financial position, income statement, statement of cash flows, statement of changes in equity, as well as the notes. The final amounts for items for which estimates and assumptions were made in the consolidated financial statements may differ from those reported in these statements due to the uncertainties that characterize the assumptions and conditions on which the estimates are based. The sources of uncertainty identified by the Group are described together with the applicable note, as follows: Significant accounting judgement /source of estimation uncertainty Described in Revenue recognition Note 8 Impairment of non-current assets Note 10 Investment in Italy Joint Venture Note 14 Control over subsidiaries Note 13 Depreciation and amortization of non-current assets Note 15 and Note 16 Deferred tax assets and uncertain tax positions Note 12 and Note 22 Fair value of financial instruments Note 17 Provisions Note 22 and Note 26

FINANCIAL RISK MANAGEMENT

FINANCIAL RISK MANAGEMENT	12 Months Ended
FINANCIAL RISK MANAGEMENT	Dec. 31, 2017
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT	4 FINANCIAL RISK MANAGEMENT The Group's principal financial liabilities, other than derivatives, consist of loans and borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Group's operations. The Group has trade and other receivables, and cash and short-term deposits that are derived directly from its operations. The Company views derivative instruments as risk management tools and does not use them for trading or speculative purposes. The Group is exposed to market risk, credit risk and liquidity risk. The Company's Management Board oversees the management of these risks. The Company's Management Board is supported by the treasury department who advises on financial risks and the appropriate financial risk governance framework for the Company. The Finance and Strategy Committee provides assurance to the Company's Management Board that the Group's financial risk management activities are governed by appropriate policies and procedures, and that financial risks are identified, measured and managed in accordance with Group policies and the Group's risk appetite. All derivative activities for risk management purposes are carried out by specialist teams with appropriate skills, experience and supervision. The Group Chief Executive Officer ( "CEO" ), Group Chief Financial Officer ( "CFO" ) and other senior management of the Company review and agree on policies for managing each of these risks, which are summarized below. MARKET RISK Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises interest rate risk and foreign currency risk. INTEREST RATE RISK Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates. The Company manages its interest rate risk exposure through a portfolio of fixed and variable rate borrowings and hedging activities. At December 31, 2017, after taking into account the effect of interest rate swaps, approximately 80% of the Company's borrowings are at a fixed rate of interest (2016: 81%). Interest rate sensitivity The following table demonstrates the sensitivity to possible changes in interest rates on variable interest loans and borrowings, taking into account the related derivative financial instruments, cash and cash equivalents and current deposits. With all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings while the Company's equity is affected through the impact of a parallel shift of the yield curve to the fair value of derivatives as follows: Effect on profit / Effect on other Increase / decrease in basis points +100 –100 +100 –100 2017 Euro ) ) U.S. Dollar ) ) Pakistani Rupee ) ) Ukrainian Hryvnia ) — — Other currencies ) — — 2016 Algerian Dinar ) — — Uzbek Som ) — — Pakistani Rupee — — ) Ukrainian Hryvnia ) — — Other currencies ) — — FOREIGN CURRENCY RISK Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the debt denominated in currencies other than the functional currency of the relevant entity, the Company's operating activities (predominantly capital expenditures at subsidiary level denominated in a different currency from the subsidiary's functional currency) and the Company's net investments in foreign subsidiaries. The Company manages its foreign currency risk by selectively hedging committed exposures. The Company hedges part of its exposure to fluctuations on the translation into U.S. dollars of its foreign operations by holding net borrowings in foreign currencies and can use foreign currency swaps and forwards for this purpose as well. Foreign currency sensitivity The following table demonstrates the sensitivity to a possible change in exchange rates against the US dollar with all other variables held constant. Additional sensitivity changes to the indicated currencies are expected to be approximately proportionate. The table shows the effect on the Company's profit before tax (due to changes in the value of monetary assets and liabilities, including non-designated foreign currency derivatives) and equity (due to the effect on the cash flow hedge reserve and/or effect on currency translation reserve for quasi equity loans). The Company's exposure to foreign currency changes for all other currencies is not material. Effect on profit / Effect on other Change in foreign exchange rate against US$ 10% 10% 10% 10% 2017 Russian Ruble ) — — Bangladeshi Taka ) — — Pakistani Rupee ) — — Kazakh Tenge ) — — Uzbek Som ) — — Georgian Lari ) — — Armenian dram ) — — Euro ) ) Algerian Dinar ) — — Other currencies ) — — 2016 Russian Ruble ) ) Bangladeshi Taka ) — — Pakistani Rupee ) — — Kazakh Tenge ) — — Uzbek Som ) ) Georgian Lari ) — — Armenian dram ) — — Euro ) — — Algerian Dinar ) — — Other currencies ) — — 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. The Company is exposed to credit risk from its operating activities (primarily from trade receivables), and from its treasury activities, including deposits with banks and financial institutions, derivative financial instruments and other financial instruments. See Note 18 for further information on restrictions on cash balances. Trade receivables consist of amounts due from customers for airtime usage and amounts due from dealers and customers for equipment sales. In certain circumstances, VEON requires deposits as collateral for airtime usage. In addition, VEON has introduced a prepaid service and equipment sales are typically paid in advance of delivery, except for equipment sold to dealers on credit terms. VEON's credit risk arising from the services the Company provides to customers is mitigated to a large extent due to the majority of its active customers being subscribed to a prepaid service as of December 31, 2017 and 2016, and accordingly not giving rise to credit risk. VEON's credit risk arising from its trade receivables from dealers is mitigated due to the risk being spread across a large number of dealers. Management periodically reviews the history of payments and credit worthiness of the dealers. The Company also has receivables from other local and international operators from interconnect and roaming services provided to their customers, as well as receivables from customers using fixed-line services, such as business services, wholesale services and services to residents. Receivables from other operators for roaming services are settled through clearing houses, which helps to mitigate credit risk in this regard. VEON holds available cash in bank accounts, as well as other financial assets with financial institutions in countries where it operates. To manage credit risk associated with such asset holdings, VEON allocates its available cash to a variety of local banks and local affiliates of international banks within the limits set forth by its treasury policy. Management periodically reviews the creditworthiness of the banks with which it holds assets. In respect of financial instruments used by the Company's treasury function, the aggregate credit risk the Group may have with one counterparty is limited by reference to, amongst others, the long-term credit ratings assigned for that counterparty by Moody's, Fitch Ratings and Standard & Poor's and CDS spreads of that counterparty. Counterparty credit limits are reviewed and approved by the Company's CFO. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through potential counterparty's failure. Value Added Tax ( "VAT" ) is recoverable from tax authorities by offsetting it against VAT payable to the tax authorities on VEON's revenue or direct cash receipts from the tax authorities. Management periodically reviews the recoverability of the balance of input value added tax and believes it is fully recoverable. VEON issues advances to a variety of its vendors of property and equipment for its network development. The contractual arrangements with the most significant vendors provide for equipment financing in respect of certain deliveries of equipment. VEON periodically reviews the financial position of vendors and their compliance with the contract terms. The Company's maximum exposure to credit risk for the components of the statement of financial position at December 31, 2017 and 2016 is the carrying amount as illustrated in Note 17, Note 18 and Note 20. LIQUIDITY RISK The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, debentures, preference shares, financial and operating leases. The Company's policy is to create a balanced debt maturity profile. As of December 31, 2017, 10% of the Company's debt (2016: 27%) will mature in less than one year based on the carrying value of bank loans, equipment financing and loans from others reflected in the financial statements. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low based on liquidity in the markets the Company has access to, and recent history of refinancing. The Company believes that access to sources of funding is sufficiently available and the Company's policy is to diversify the funding sources where possible. Available facilities The Company had the following available facilities as of balance sheet date for the years indicated below: Amounts in millions of transactional currency US$ equivalent amounts Final Facility Utilized Available Facility Utilized Available 2017 VEON Holdings B.V.—Revolving Credit Facility* Feb 2020 US$1,688 US$250 US$1,438 VEON Holdings B.V.—Term Loan Facility May 2018 RUB 45,000 million RUB 30,000 million RUB 15,000 million Banglalink Digital Communications Ltd.—Syndicated Term Loan Facility Sep 2018 BDT 29,300 million — BDT 29,300 million — Pakistan Mobile Communications Limited—Syndicated Term Loan Facility Jun 2018 PKR 26,750 million PKR 17,000 million PKR 9,750 million Pakistan Mobile Communications Limited—Term Loan Facility Jun 2018 PKR 10,000 million PKR 5,000 million PKR 5,000 million 2016 VEON Amsterdam B.V.—Revolving Credit Facility March 2017 US$1,800 — US$1,800 — VEON Holdings B.V.—Vendor Financing Facility China Development Bank September 2018 RMB 700 million RMB 149 million RMB 551 million PJSC VimpelCom—Revolving Credit Facility Sberbank May 2017 RUB 15,000 million — RUB 15,000 million — Optimum Telecom Algérie SpA—Term Loan Facility December 2017 DZD 32,000 million — DZD 32,000 million — * The facility amount of US$1,688 is available until February 2020. Subsequently a reduced facility amount of US$1,586 is available until February 2021. Multi-currency term and revolving facilities of up to US$2,250 VEON Holdings entered into a new multi-currency term and revolving facilities agreement (the "TL/RCF" ) of up to US$2,250 on February 16, 2017. The TL/RCF replaced the US$1,800 revolving credit facility signed in 2014. The term facility of US$562.5 has a five-year tenor and the revolving credit facility of US$1,585.5 had an initial tenor of three years, with VEON Holdings having the right to request two one-year extensions to the tenor of the revolving credit facility, subject to lender consent. On January 25, 2018 lenders for an aggregate commitment of US$1,586 confirmed one-year extension to February 2021. Under the TL/RCF, the Net Debt to Adjusted EBITDA covenant ratio will be calculated on the basis of the consolidated financial statements of VEON Ltd. and "pro-forma" adjusted for acquisitions and divestments of any business bought or sold during the relevant period. During Q2 2017, VEON Holdings drew down EUR 527 million under the Term loan. Banglalink BDT 29.3 billion facilities agreement On December 26, 2017 Banglalink has entered into a new floating rate term facilities agreement of BDT 29.3 billion (US$353), divided in two tranches. The first tranche of BDT 10.7 billion (US$129) has a three-year tenor and the second tranche BDT 18.6 billion (US$224) has a five-year tenor. The term facilities agreement includes an option to increase the amount of the facilities up to a total amount of BDT 40 billion. Maturity profile The table below summarizes the maturity profile of the Group's financial liabilities based on contractual undiscounted payments. Payments related to variable interest rate financial liabilities and derivatives are included based on the interest rates and foreign currency exchange rates applicable as of December 31, 2017 and December 31, 2016, respectively. The total amounts in the table differ from the carrying amounts as stated in Note 17 as the below table includes both undiscounted notional amounts and interest while the carrying amounts are measured using the effective interest method. Less 1 - 3 years 3 - 5 years More Total At December 31, 2017 Bank loans and bonds Derivative financial liabilities Gross cash inflows ) ) ) — ) Gross cash outflows — Trade and other payables — — — Other financial liabilities — — — Warid non-controlling interest put option liability — — — Total financial liabilities Related derivatives financial assets Gross cash inflows ) — — — ) Gross cash outflows — — — Related derivative financial assets ) — — — ) Total financial liabilities, net of derivative assets Less 1 - 3 years 3 - 5 years More Total At December 31, 2016 Bank loans and bonds Derivative financial liabilities Gross cash inflows ) — — — ) Gross cash outflows — — Trade and other payables and dividend payables — — — Other financial liabilities — — Warid non-controlling interest put option liability — — — Total financial liabilities Related derivatives financial assets Gross cash inflows ) — — — ) Gross cash outflows — — — Related derivative financial assets ) — — — ) Total financial liabilities, net of derivative assets CAPITAL MANAGEMENT The primary objective of the Company's capital management is to ensure that it maintains healthy capital ratios in order to secure access to debt and capital markets at all times and maximize shareholder value. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and significant changes were introduced in 2017 in order to move towards a holding company funding structure. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Current credit ratings of the Company support its capital structure objectives. In February 2017, our Supervisory Board approved a dividend policy pursuant to which from 2017 the Company aims to pay a sustainable and progressive dividend based on the evolution of the Company's equity free cash flow, which is defined as net cash flow from operating activities less net cash used in investing activities, as reported in the consolidated financial statements. No other changes were made in the objectives, policies or processes for managing capital during the year ended on December 31, 2017. The Net Debt to Adjusted EBITDA ratio is an important measure used by the Company to assess its capital structure. Net Debt represents the amount of interest-bearing debt measured at amortized cost adjusted for derivatives designated in hedging relationship less cash and cash equivalents and bank deposits. Adjusted EBITDA is defined as last twelve months earnings before interest, tax, depreciation, amortization and impairment, loss on disposals of non-current assets, other non-operating losses and share of profit / (loss) of joint ventures. For reconciliation of Adjusted EBITDA to Profit / (loss) before tax, refer to Note 7. Further, this ratio is included as a financial covenant in the credit facilities of the Company. For most of our credit facilities the Net Debt to Adjusted EBITDA ratio is calculated at consolidated level of either VEON Ltd. or VEON Holdings B.V. and is "pro-forma" adjusted for acquisitions and divestments of any business bought or sold during the relevant period. Under these credit facilities, the Company is required to maintain the Net Debt to Adjusted EBITDA ratio below 3.5x. As of December 31, 2017, the Company did not breach any covenants.

SIGNIFICANT TRANSACTIONS

SIGNIFICANT TRANSACTIONS	12 Months Ended
SIGNIFICANT TRANSACTIONS	Dec. 31, 2017
SIGNIFICANT TRANSACTIONS
SIGNIFICANT TRANSACTIONS	5 SIGNIFICANT TRANSACTIONS TRANSACTIONS IN 2017 Towers in Pakistan classified as held-for-sale On August 30, 2017, Pakistan Mobile Communications Limited (" PMCL "), a subsidiary of the Company, signed an agreement for the sale of its subsidiary, Deodar (Private) Limited ( "Deodar" ) for approximately US$940, subject to customary closing adjustments, to Tanzanite Tower (Private) Limited (" Tanzanite "), a tower operating company owned by edotco Group Sdn. Bhd. (" edotco "), and Dawood Hercules Corporation (" Dawood "). Deodar holds the tower business of PMCL, a portfolio of approximately 13,000 towers, and provides network tower services in Pakistan. As a result of this anticipated transaction, on June 30, 2017, the Company classified Deodar as a disposal group held-for-sale. The completion of the transaction is subject to the satisfaction or waiver of certain conditions including receipt of customary regulatory approvals. Following the classification as a disposal group held-for sale, the Company no longer accounts for depreciation and amortization expenses of Deodar assets. The assets and liabilities of Deodar classified as held for sale as of balance sheet date are presented below: 2017 Property and equipment Goodwill Deferred tax assets Other non-current assets Other current assets Total assets held for sale Non-current liabilities ) Current liabilities ) Total liabilities held for sale ) Included in the equity of the Group is cumulative other comprehensive income of US$(28) related to Deodar, which is classified as held for sale. Global Telecom Holding S.A.E share buyback Global Telecom Holdings S.A.E ( "GTH" ), a subsidiary of the Company, bought back 524,569,062 ordinary shares from its shareholders for EGP 4.1 billion (US$259), which transaction settled on February 21, 2017. The Company did not take part in the share buyback. As a result of the share buyback, the Company's interest in GTH increased by 5.77% from 51.92% to 57.69%, resulting in a US$12 loss recognized directly in equity. The cancellation of the 524,569,062 ordinary shares was approved at an extraordinary general meeting of GTH's shareholders on March 19, 2017 and took effect on April 16, 2017 after ratification by the Egyptian Financial Supervisory Authority of the minutes of the March 19, 2017 extraordinary general meeting. Global Telecom Holding S.A.E mandatory tender offer On November 8, 2017, VEON submitted an application to the Egyptian Financial Supervisory Authority ( "EFSA" ) to approve a mandatory tender offer ( "MTO" ) by VEON Holdings B.V. for any and all of the outstanding shares of GTH which are not owned by VEON (up to 1,997,639,608 shares, representing 42.31% of GTH's total shares). The MTO will be funded by cash on hand and/or the utilization of undrawn credit facilities. The proposed offer price under the MTO is EGP 7.90 per share. Any increase of the Company's interest in GTH will be accounted for directly in equity upon closing of the transaction. The MTO is subject to EFSA approval. As of December 31, 2017, cash balances of US$987 are pledged as collateral for the Mandatory Tender Offer for the purchase of shares of GTH, refer to Note 17. Exit from Euroset Holding N.V. Joint Venture On July 7, 2017, PJSC VimpelCom, a subsidiary of the Company, entered into a Framework Agreement with PJSC MegaFon ( "MegaFon" ) to unwind their retail joint venture, Euroset Holding N.V. ( "Euroset" ). Under the agreement, MegaFon acquired PJSC VimpelCom's 50% interest in Euroset and PJSC VimpelCom paid RUB 1.25 billion (approximately US$20 and subject to possible completion adjustments) and acquired rights to 50% of Euroset's approximately 4,000 retail stores in Russia. The transaction was successfully completed subsequent to year end, on February 22, 2018. As a result of this anticipated transaction, the investment in the Euroset joint venture was classified as an asset held-for-sale on June 30, 2017. However, as a result of the impairment described in Note 14, the investment in Euroset had a carrying value of nil prior to reclassification as an asset held-for-sale. Laos operations classified as held for sale On October 27, 2017, VimpelCom Holding Laos B.V. (" VimpelCom Laos "), a subsidiary of the Company, entered into a Sale and Purchase Agreement for the sale of its operations in Laos to the Lao People's Democratic Republic (" Government of Laos "). Under the agreement, VimpelCom Laos will transfer its 78% interest in VimpelCom Lao Co. Limited (" VIP Lao ") to the Government of Laos, the minority shareholder, in exchange for purchase consideration of US$22. Although purchase consideration has been received (in two separate payments, on December 8, 2017 and February 22, 2018), the transaction remains subject to satisfaction of other closing conditions. As a result of this anticipated transaction, we classified our Laos business as an asset held for sale on June 30, 2017. In connection with this classification, the Company no longer accounts for depreciation and amortization expenses of VIP Lao assets. The assets and liabilities of VIP Lao classified as held for sale as of balance sheet date are presented below: 2017 Property and equipment Intangible assets Current assets Total assets held for sale Non-current liabilities ) Current liabilities ) Total liabilities held for sale ) Included in the equity of the Group is cumulative other comprehensive income of nil and non-controlling interests of US$(5) related to Laos, which is classified as held for sale. TRANSACTIONS IN 2016 Joint venture in Italy The Company signed an agreement with Hutchison Europe Telecommunications S.à r.l., a wholly-owned subsidiary of CK Hutchison Holdings Ltd ( "HET" ), which indirectly owns 100% of Italian mobile operator 3 Italia, on August 6, 2015 to combine its operations in Italy with 3 Italia in a 50/50 joint venture. As a result of the expected loss of control from the agreement, the Company classified its operations in Italy as an asset held for sale and discontinued operation in the consolidated financial statements. The transaction was successfully completed on November 5, 2016 following satisfaction of the necessary conditions precedent, which included receipt of approvals from the European Commission and the Italian Ministry of Economic Development. In connection with these approvals, the Italy Joint Venture and its shareholders signed agreements with Iliad SA ( "Iliad" ) for the sale of spectrum and sites and an undertaking to provide other services including national roaming, to enable the French telecommunication operator to enter the Italian market. Under the transaction, the Company contributed its entire shareholding in the operations in Italy, in exchange for a 50% interest in the newly-formed Italy Joint Venture and subject to customary working capital and net cash adjustments. As a result, the Company has lost control of its operation in Italy. On completion of the transaction, the assets and liabilities of Italy were deconsolidated and an investment in joint venture, in which the Company has joint control, was recorded at fair value of EUR 1,897 million (US$2,113). The initial investment in the joint venture is based on a Level 3 fair value derived from a discounted cash flow model, incorporating the expected realization of synergies adjusted for market expectations and the impact of agreements entered into with Iliad, as described above. The key assumption used in the discounted cash flow model are as follows: Key assumptions November 5, 2016 Discount rate (functional currency) % Average annual revenue growth rate during forecast period (functional currency) )% Terminal growth rate % Average operating (EBITDA) margin during forecast period % Average capital expenditure as a percentage of revenue % The investment in the Italy Joint Venture is equity accounted from November 5, 2016, refer to Note 14 for further details regarding investments in joint ventures and associates. The effect of the disposal of Italy for the current year is detailed below: Note 2016 Fair value of investment in joint venture 14 Cash consideration receivable* Total consideration on disposal De-recognition of assets classified as held for sale ) De-recognition of liabilities classified as held for sale Release of cumulative other comprehensive income related to Italy Gain on disposal of discontinued operations, net of tax * Cash consideration receivable relates to a Final Adjustment payable by HET to the Company based on contributed Working Capital and Net Cash. From August 2015, Italy is no longer a reportable segment subsequent to its classification as a discontinued operation. The comparative information has been adjusted accordingly (Note 7). Transactions between the Group and its operation in Italy are disclosed as Related Party transactions and balances (Note 25). Financial information related to the discontinued operation is set out below. Financial year 2016 includes 10 months of results for the Italy operations, compared with 12 months for financial year 2015. 2016 2015 Total operating revenues Total operating expenses ) ) Operating profit Other (expenses) / income ) ) Profit / (loss) before tax Income tax (expense) / benefit ) ) Profit / (loss) after tax for the period from discontinued operations Acquisition in Pakistan On November 26, 2015, International Wireless Communications Pakistan Limited and Pakistan Mobile Communications Ltd ( "PMCL" ), each indirect subsidiaries of the Company, signed an agreement with Warid Telecom Pakistan LLC and Bank Alfalah Limited, to combine their operations in Pakistan. On July 1, 2016, the transaction was closed and PMCL acquired 100% of the voting shares in Warid Telecom (Pvt) Limited ( "Warid" ) for a consideration of 15% of the shares in PMCL. As a result, the Company gained control over Warid. VEON elected to measure the non-controlling interest in the acquiree at fair value. The fair values of the identifiable assets 2016 Non-current assets Property and equipment Intangible assets Deferred tax assets Other financial assets Current assets Inventories Trade and other receivables Other non-financial assets Current income tax assets Cash and cash equivalents Non-current liabilities Financial liabilities ) Provisions ) Other non-financial liabilities ) Current liabilities Trade and other payables ) Other non-financial liabilities ) Other financial liabilities ) Total identifiable net assets at fair value Purchase consideration Goodwill resulting from the acquisition Purchase consideration Share issued by PMCL Contingent consideration liability Total purchase consideration Analysis of cash flows on acquisition Net cash acquired with the subsidiary (included in cash flows from investing activities) Net cash flow on acquisition There have been no period adjustments to the provisional fair values of the assets acquired, liabilities assumed and consideration to date. The goodwill of US$201 comprises the value of expected synergies arising from the acquisition. The goodwill recognized is deductible for income tax purposes. The fair value of the trade receivables amounts to US$26. The gross amount of trade receivables is US$33, of which US$7 is expected not to be collected. From the date of acquisition, Warid contributed US$161 of revenue and a loss of US$6 to Loss before tax from continuing operations of the Group. If the combination had taken place at the beginning of the year, the contribution to revenue from continuing operations would have been US$313, and the contribution to the results before tax from continuing operations for the Group would have been a loss of US$37. PMCL issued 679,604,049 ordinary shares as consideration for the 100% interest in Warid. The fair value of the shares is based on a Level 3 fair value derived from a discounted cash flow model, incorporating the expected realization of synergies adjusted for market expectations. The discount rate applied was 14.1% with a 4% terminal growth rate. As part of the share purchase agreement, an earn-out payment has been agreed in the event that a tower transaction is affected by PMCL within four years from the acquisition date. The earn-out also applies if another telecommunications operator in Pakistan effects a tower transaction, provided the transaction meets certain parameters, in the same timeframe. The contingent consideration will be settled with a share transfer of PMCL shares. At the acquisition date, the fair value of the contingent consideration was estimated to be US$47 using a discounted cash flow technique. There were no changes to the fair value of the contingent consideration since the acquisition date, other than the unwinding of discount. The fair value of the non-controlling interest in PMCL related to the Warid acquisition has been estimated by applying a discounted cash flow technique. As part of the acquisition agreement, the Company also agreed put-call options over the entire non-controlling interest, whereby the Company has the ability to call, and the non-controlling interest has the ability to put the entire non-controlling interest of PMCL. The options are exercisable four years from the acquisition date at the fair market value of the PMCL shares. The put-call options over the non-controlling interest of PMCL are accounted for as a put-option redemption liability which is classified as a financial liability in the Company's consolidated financial statements (Note 17). The put-option redemption liability is measured at the discounted redemption amount with a value of US$274 at the acquisition date. Interest over the put-option redemption liability will accrue until the options have been exercised or are expired. As a result, no non-controlling interest will be recognized over the non-controlling interest in PMCL in the Company's consolidated financial statements. Interest expense and foreign exchange loss over the option's redemption liability amounted to US$21 and US$1, respectively, for the period ended December 31, 2016. In addition, PMCL declared dividends of US$7 attributable to the non-controlling interest of PMCL (Note 24), which has reduced the put-option redemption liability. As of December 31, 2016, the resulting carrying value of put-option redemption liability was US$290 (Note 17). Following the acquisition of Warid, the legal merger of Mobilink and Warid occurred by way of a scheme of arrangement under Pakistani law as approved by a merger order of the Islamabad High Court dated December 15, 2016, whereby Warid merged into PMCL and (the former) ceased to exist. The court order provides for a merger effective date of July 1, 2016. Acquisition of additional interest in 2Day Telecom LLP and KazEuroMobile LLP On September 30, 2016 the Company acquired an additional interest of 16% in 2Day Telecom LLP, increasing its interest to 75%, for cash consideration of US$7. On the same date, the Company acquired an additional 24% interest in KazEuroMobile LLP for KZT 1, increasing its interest to 75%. The purpose of these transactions is to streamline the ownership structure of the Group. The transactions were accounted for through equity by increasing other capital reserves. The transactions resulted in a decrease in equity attributable to the shareholders of the parent of US$9 and US$1 respectively. Sale of operations in Zimbabwe On November 18, 2015, the Company, together with its subsidiary GTH, entered into an agreement with ZARNet (Private) Limited to sell its stake in Telecel International Limited for US$40. Telecel International Limited owns 60% of Telecel Zimbabwe (Pvt) Ltd. ZARNet is wholly owned by the Government of the Republic of Zimbabwe through the Ministry of Information & Communication Technology, Postal and Courier Services. Due to constraints in ZARNet's ability to pay the full US$40 outside of Zimbabwe, it was agreed that ZARNet will satisfy the purchase price consideration with US$21 cash (of which US$10 was received in 2015 and US$11 was received in 2016), and a US$19 Vendor Note payable in three years to Global Telecom Netherlands B.V., a subsidiary of GTH. Due to the currency restrictions in Zimbabwe, management have not included the Vendor Note in determining the result of the sale, as it is currently uncertain whether it will be recoverable. The transaction closed on November 30, 2016, resulting in a gain of US$21. ACCOUNTING POLICIES Transactions with non-controlling interests that do not result in loss of control Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions—that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. Non-current assets (or disposal groups) held for sale and discontinued operations Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction or loss of control rather than through continuing use, and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell. Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Assets and liabilities of a disposal group classified as held for sale are presented separately from the other assets and liabilities in the statement of financial position. A discontinued operation is a component that is classified as held for sale and that represents a separate major line of business or geographical area of operations. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount in the income statement. All other notes to the financial statements include amounts for continuing operations, unless otherwise mentioned.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
EARNINGS PER SHARE	Dec. 31, 2017
EARNINGS PER SHARE
EARNINGS PER SHARE	6 EARNINGS PER SHARE Earnings per common share for all periods presented has been determined by dividing profit available to common shareholders by the weighted average number of common shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share ( "EPS" ) for continuing operations, for the years ended December 31: Continuing operations (In millions of U.S. dollars, except share and per share amounts) 2017 2016 2015 Numerator: (Loss) / profit for the period attributable to the owners of the parent ) ) ) Denominator: Weighted average common shares outstanding for basic earnings per share (in millions) Effect of dilutive securities: Employee stock options (in millions) — — Denominator for diluted earnings per share (in millions) Basic (loss) / earnings per share $ ) $ ) $ ) Diluted (loss) / earnings per share $ ) $ ) $ ) The following table sets forth the computation of basic and diluted earnings per share ( "EPS" ) for discontinued operations, for the years ended December 31: Discontinued operations (In millions of U.S. dollars, except share and per share amounts) 2017 2016 2015 Numerator: (Loss) / profit for the period attributable to the owners of the parent — Denominator: Weighted average common shares outstanding for basic earnings per share (in millions) Effect of dilutive securities: Employee stock options (in millions) — — Denominator for diluted earnings per share (in millions) Basic (loss) / earnings per share $ $ $ Diluted (loss) / earnings per share $ $ $

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
SEGMENT INFORMATION	Dec. 31, 2017
SEGMENT INFORMATION
SEGMENT INFORMATION	7 SEGMENT INFORMATION Management analyzes the Company's operating segments separately because of different economic environments and stages of development in different geographical areas, requiring different investment and marketing strategies. Management does not analyze assets or liabilities by reportable segments. Management evaluates the performance of the Company's segments on a regular basis, primarily based on earnings before interest, tax, depreciation, amortization, impairment, gain / loss on disposals of non-current assets, other non-operating gains / losses and share of profit / loss of joint ventures and associates ( "Adjusted EBITDA" ). From the first quarter of 2017, management has included the Italy Joint Venture (see Note 14) as a separate reportable segment, due to its increased contribution to the Company's overall financial result and position. Financial information by reportable segment for the years ended December 31, 2017, 2016 and 2015, is presented in the following tables, with the exception of the Italy Joint Venture, for which financial information is presented in Note 7. Inter-segment transactions between operating segments are on an arm's length basis in a manner similar to transactions with third parties. The segment data for acquired operations are reflected herein from the date of their respective acquisition. External customers Inter-segment Total revenue Revenue 2017 2016 2015* 2017 2016 2015 2017 2016 2015* Russia Pakistan — — Algeria — — Bangladesh — — — Ukraine Uzbekistan — HQ — — — — — — — Other ) ) ) Total segments — — — * Amounts have been re-presented to conform with current year presentation, refer to Note 8. Adjusted EBITDA Capital expenditures Other disclosures 2017 2016 2015 2017 2016 2015 Russia Pakistan Algeria Bangladesh Ukraine Uzbekistan HQ ) ) ) Other Total segments The following table provides the reconciliation of consolidated Adjusted EBITDA to consolidated income statement before tax for the years ended December 31: 2017 2016 2015 Total Segments Adjusted EBITDA Depreciation ) ) ) Amortization ) ) ) Impairment losses ) ) ) Loss on disposals of non-current assets ) ) ) Finance costs ) ) ) Finance income Other non-operating losses, net ) ) ) Share of (loss) / profit of joint ventures and associates ) Impairment of joint ventures and associates ) ) — Net foreign exchange (loss) / (gain) ) ) (Loss) / profit before tax ) ) Geographical information of non-current assets The total of non-current assets (other than financial instruments, investments in subsidiaries and deferred tax assets, which are included in Other, along with consolidation eliminations), broken down by location of the assets, is shown in the following tables: 2017 2016* Russia Pakistan Algeria Bangladesh Ukraine Uzbekistan HQ Other Total segments * Amounts have been re-presented to conform with current year presentation.

REVENUE

REVENUE	12 Months Ended
REVENUE	Dec. 31, 2017
REVENUE
REVENUE	8 REVENUE VEON generates revenue from providing voice, data and other telecommunication services through a range of wireless, fixed and broadband Internet services, as well as selling equipment and accessories. Products and services may be sold separately or in bundled packages. The following table provides a breakdown of total operating revenue from external customers by mobile and fixed line for the years ended December 31: 2017 2016 2015 Mobile services Fixed line services Total revenue ACCOUNTING POLICIES The following accounting policies have been applied for the Group for the current and comparative years. Refer to Note 3 for details regarding upcoming changes to revenue recognition and impact for the Group in future years. Generally, revenue for products is recorded when the equipment is sold or upon transfer of the associated risks and rewards, and revenue for services is recorded when the services are rendered. Revenue for bundled packages is recorded based on the relative fair value allocation of each component in the bundle. Mobile services Service revenue includes revenue from airtime charges from contract and prepaid customers, monthly contract fees, interconnect revenue, roaming charges and charges for value added services ( "VAS" ). VAS includes short messages, multimedia messages, caller number identification, call waiting, data transmission, mobile internet, downloadable content, mobile finance services, machine-to-machine and other services. The content revenue relating to VAS is presented net of related costs when the Company acts as an agent of the content providers and gross when the Company acts as the primary obligor of the transaction. In 2016, the Group aligned its practices for content revenue across the group and re-presented the comparative period of 2015. The impact of this refinement in policy was not material for any periods presented, reducing service revenue and service costs by US$19. The net results, financial position and operating cash flows for these periods remained unaffected. The Company concluded that net presentation of the content revenue better reflected the actual nature and substance of the arrangements with content providers. More specifically, the accounting for revenue sharing agreements and delivery of content depends on the analysis of the facts and circumstances surrounding these transactions, which will determine if the revenue is recognized gross or net. Service revenue is generally recognized when the services (including VAS and roaming revenue) are rendered. Sales of prepaid cards, used as a method of cash collection, is accounted for as customer advances for future services and the respective revenue is deferred until the customer uses the airtime. Prepaid cards might not have expiration dates but are subject to statutory expiration periods, and unused prepaid balances are added to service revenue based on an estimate of the expected balance that will expire unused. VEON charges customers a fixed monthly fee for the use of certain services. Such fees are recognized as revenue in the respective month when earned. Some tariffs include bundle rollovers which effectively allow customers to rollover unused minutes from one month to the following month. For these tariffs, the portion of the access fee representing the fair value of the rolled over minutes is deferred until the service is delivered. Fixed-line services Revenue from traditional voice services and other service contracts is accounted for when the services are provided. Revenue from Internet services is measured primarily by monthly fees and internet-traffic volume which has not been included in monthly fees. Payments from customers for fixed-line equipment are not recognized as revenue until installation and testing of such equipment are completed and the equipment is accepted by the customer. Domestic Long Distance/International Long Distance and zonal revenue are recorded gross or net depending on the contractual arrangements with the end-users. Connection fees VEON defers upfront telecommunications connection fees. The deferral of revenue is recognized over the estimated average customer life or the minimum contractual term, whichever is shorter. The Company also defers direct incremental costs related to connection fees for fixed line customers, in an amount not exceeding the revenue deferred. Sales of equipment Revenue from mobile equipment sales, such as handsets, are recognized in the period in which the equipment is sold to either a network customer or, if sold via an intermediary, when the significant risks and rewards associated with the device have passed to the intermediary and the intermediary has no general right of return or if a right of return exists, when such right has expired. Multiple elements agreements ("MEA") MEA are agreements under which VEON provides more than one service. Services / products may be provided or 'bundled' under different agreements or in groups of agreements which are interrelated to such an extent that, in substance, they are elements of one agreement. In the event of an MEA, each element is accounted for separately if it can be distinguished from the other elements and has a fair value on a standalone basis. The customer's perspective is important in determining whether the transaction contains multiple elements or is just a single element arrangement. The relative fair value method is applied in determining the value to be allocated to each element of an MEA. Fair value is determined as the selling price of the individual item. If an item has not been sold separately by the Group yet, but is sold by other suppliers, the fair value is the price at which the items are sold by the other suppliers. SOURCE OF ESTIMATION UNCERTAINTY The Group's revenue consists primarily of revenue from sale of telecommunications services and periodic subscriptions. The Group offers customers, via multiple element agreements ('bundles') or otherwise, a number of different services with different price plans, and provides discounts in various types and forms, often in connection with different campaigns, over the contractual or average customer relationship period. Determining the fair value of each deliverable can require complex estimates due to the nature of the goods and services provided. The Group also sells wholesale products to other operators and vendors in different countries and across borders. Management has to make estimates related to revenue recognition, relying to some extent on information from other third-party operators regarding values of services delivered. Management also makes estimates for the final outcome in instances where the other parties dispute the amounts charged. Furthermore, management has to estimate the average customer relationship for revenue that is initially recognized as deferred revenue in the statement of financial position and thereafter recognized in the income statement over a future period, for example, revenue from connection fees. Management also applies judgment in evaluating gross or net presentation of revenue and associated fees. In this case, among others, the main factor is whether the Company is considered as the primary obligor in the transactions, and the extent of latitude in establishing prices.

SELLING, GENERAL AND ADMINISTRA

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	12 Months Ended
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	Dec. 31, 2017
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	9 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses consisted of the following items for the years ended December 31: 2017 2016 2015 Network and IT costs Personnel costs Customer associated costs Losses on receivables Taxes, other than income taxes Other Total selling, general and administrative expenses Included within "Other" for the year ended December 31, 2015, is the provision expense related to the Uzbekistan investigation (see Note 22 for further details). Included within "Other" for the year ended December 31, 2017, is a reduction of US$106 following the amendment of an agreement with a vendor, which resulted in certain payments to the Company. Total operating lease expense recognized in the consolidated income statement amounted to US$444 (2016: US$408, 2015: US$385). Please refer to Note 26 for details regarding operating lease commitments. ACCOUNTING POLICIES Dealer commissions Dealer commissions are expensed in the consolidated income statement when the services are provided unless they meet the definition of an asset. Dealer commissions are part of customer associated costs. The accounting treatment of certain dealer commissions by the Group will change upon adoption of IFRS 15 on January 1, 2018, refer to Note 3 for further details. Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards associated with ownership of the leased asset to VEON. All other leases are classified as operating leases. The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date, or when the terms of the agreement are modified. Operating lease expenses The rental payable under operating leases is recognized as an operating lease expenses in the income statement on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of VEON's benefit. No asset is capitalized. If the periodic payments or part of the periodic payments has been prepaid, the Company recognizes these prepayments in the statement of financial position as other non-financial assets. Finance leases At the commencement of a finance lease term, VEON recognizes the assets and liabilities in its statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments as determined at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease. If there is no interest rate in the lease, the Company's incremental borrowing rate is used. Any initial direct costs of VEON related to the lease are added to the amount recognized as an asset.

IMPAIRMENT

IMPAIRMENT	12 Months Ended
IMPAIRMENT	Dec. 31, 2017
IMPAIRMENT
IMPAIRMENT	10 IMPAIRMENT Property and equipment and intangible assets are tested regularly for impairment. The Company assesses, at the end of each reporting period, whether there exist any indicators that an asset may be impaired (i.e. asset becoming idle, damaged or no longer in use). If there are such indicators, the Company estimates the recoverable amount of the asset. Impairment losses of continuing operations are recognized in the income statement in a separate line item. Impairment losses relate to the following for the years ended 31 December: Note 2017 2016 2015 Property and equipment 15 Intangible assets 16 — — Goodwill Total impairment loss CASH-GENERATING UNITS Goodwill has been allocated to cash-generating units ( "CGUs" ) as disclosed in the table below, for the years ended December 31. There were no changes to the methodology of goodwill allocation to CGUs. Year ended December 31, 2017 2017 Impairment Reclassification* Translation 2016 Russia — — Algeria — — ) Pakistan — ) ) Kazakhstan — — Kyrgyzstan ) — — Uzbekistan — — ) Armenia ) — — Tajikistan — — — — — Others — — — — — Total ) ) ) * Reclassified to assets held-for-sale, see Note 5 for further information. Year ended December 31, 2016 2016 Impairment Acquisition Translation 2015 Russia — — Algeria — — ) Pakistan — Kazakhstan — — Kyrgyzstan ) — Uzbekistan — — ) Armenia — — — Tajikistan — ) — — Others — ) — — Total ) The Company performed its annual goodwill impairment test as of October 1, 2017. The Company considers the relationship between market capitalization and its book value, changes in country risk premiums and significant decreases in the operating results of its CGUs versus budgeted amounts, among other factors, when reviewing for indicators of impairment on a quarterly basis. As of the impairment test date, the market capitalization of the Group was not below the book value of its equity. The Company further performed an assessment for the period between October 1, and December 31, 2017 for any adverse developments that could have negatively impacted the valuations. The recoverable amounts of CGUs have been determined based on fair value less costs of disposal calculations, using cash flow projections from business plans prepared by management in the fourth final quarter of 2017. To the extent the business initiatives would not be valued by the market due to their early stages, they were not included in the cash flow projections. The business plans cover a period of five years. The key assumptions and outcomes of the impairment test are discussed separately below. Impairment losses in 2017 Armenia Kyrgyzstan Other Total Property and equipment — — Goodwill — Total impairment loss During the 2017 annual impairment test, the Company recognized impairment losses in respect of the Armenia and Kyrgyzstan CGUs in amounts of US$34 and US$17, respectively, allocated to the existing carrying value of goodwill. The impairments were concluded largely due to lower cash flow outlook in those countries. The recoverable amounts of the Armenia and Kyrgyzstan CGUs of US$105 and US$209, respectively, were determined based on a fair value less costs of disposal calculation using the latest cash flow projections (Level 3 fair value). Details regarding key assumptions and inputs used by the Company are included later in this Note. Several countries exhibited limited headroom, and these are described later in this Note. Additionally, in connection with the rollout of the Company's transformation strategy and commitment to network modernization, the Company continuously re-evaluates the plans for its existing network, including equipment purchased but not installed, and consequently recorded an impairment loss of US$15. Impairment losses in 2016 Impairment losses in 2016 were allocated to current and non-current assets as follows: Georgia Kyrgyzstan Tajikistan Other Total Property and equipment — Intangibles — — Goodwill — Other assets* — — — Total impairment loss * Other assets include trade and other receivables and deferred tax assets. The impairments on these assets have been recognized on the income statement accounts relating to these assets, i.e. Selling, general and administrative expenses and Income tax expense. During the 2016 annual impairment test, the Company concluded impairments for the CGUs Georgia and Kyrgyzstan in amounts of US$29 and US$49, respectively. The impairments were concluded largely due to lower operating performances in those countries. The recoverable amounts of US$53 and US$219, respectively, were determined based on a fair value less costs of disposal calculation using the latest cash flow projections (Level 3 fair value). The Company applied a post-tax discount of 10.3% and 14.5%, respectively. For the Georgia CGU, the carrying amount of goodwill was already nil prior to the impairment test. As such, the total amount of the impairment loss was allocated to the carrying amounts of property and equipment and intangible assets based on relative carrying value before the impairment. In Q4 2016, the Company also concluded an impairment for CGU Tajikistan in an amount of US$88 due to negative cash flow outlook primarily driven by excessive tax levies. The impairment was allocated to all non-current and current assets, including goodwill. Additionally, in connection with the rollout of the Company's transformation strategy and commitment to network modernization, the Company has re-evaluated the plans for its existing network, including equipment purchased but not installed, and consequently recorded an impairment loss of US$30. Impairment losses in 2015 In Q1 2015, due to higher weighted average cost of capital for Ukraine by 1.0% as compared to October 1, 2014, the Group recorded an impairment loss of US$51 in the Ukraine CGU. The recoverable amount was determined based on a fair value less costs of disposal calculation using the latest cash flow projections (Level 3 fair value). Due to the macroeconomic and geopolitical situation in the country, the Company applied higher post-tax discount factors for the first two years in the explicit period of 27.1% in 2015 and 20.4% in 2016, followed by normalized post-tax discount rate of 17.8% as of March 31, 2015. Also, due to higher weighted average costs of capital for the CGU Armenia, an impairment was reported in Q1 2015 for the amount of US$44. The recoverable amount was determined based on a fair value less costs of disposal calculation using the latest cash flow projections (Level 3 fair value). The Company applied post-tax discount rate of 12.1% as of March 31, 2015. Based on the annual goodwill impairment test as of October 1, 2015, there were no other impairment losses identified for these and other CGUs. Additionally, in connection with the rollout of the Company's transformation strategy and commitment to network modernization, the Company has re-evaluated the plans for its existing network, including equipment purchased but not installed, and consequently recorded an impairment loss of US$150. KEY ASSUMPTIONS The key assumptions and inputs used by the Company in determining the recoverable amount are as follows: Assumption Description Discount rate Discount rates are initially determined in US$ based on the risk-free rate for 20-year maturity bonds of the United States Treasury, adjusted for a risk premium to reflect both the increased risk of investing in equities and the systematic risk of the specific CGU relative to the market as a whole. The equity market risk premium used was 6.0% (2016: 5.5%, 2015: 5.5%). The systematic risk, beta, represents the median of the raw betas of the entities comparable in size and geographic footprint with the ones of the Company ( "Peer Group" ). The debt risk premium is based on the median of Standard & Poor's long-term credit rating of the Peer Group. The weighted average cost of capital is determined based on target debt-to-equity ratios representing the median historical five-year capital structure for each entity from the Peer Group. The discount rate in functional currency of a CGU is adjusted for the long-term inflation forecast of the respective country in which the business operates, as well as the applicable country risk premium. Projected revenue growth rates The revenue growth rates vary based on numerous factors, including size of market, GDP (Gross Domestic Product), foreign currency projections, traffic growth, market share and others. Projected average operating margin The Company estimates operating margin based on Adjusted EBITDA divided by Total Operating Revenue for each CGU and each future year. The forecasted operating margin is based on the budget of the following year and assumes cost optimization initiatives which are part of on-going operations, as well as regulatory and technological changes known to date, such as telecommunication license issues and price regulation among others. Average capital expenditure as a percentage of revenue Capital expenditure ( "CAPEX" ) is defined as purchases of property and equipment and intangible assets other than goodwill. The cash flow forecasts for capital expenditure are based on past experience and amounts budgeted for the following year(s) and include the network roll-outs plans and license requirements. Projected license and spectrum payments The cash flow forecasts for license and spectrum payments for each operating company for the initial five years include amounts for expected renewals and newly available spectrum. Beyond that period, a long-run cost of spectrum is assumed. Long-term growth rate A long-term growth rate into perpetuity is estimated based on a percentage that is lower than or equal to the country long-term inflation forecast, depending on the CGU. The table below shows key assumptions used in fair value less costs of disposal calculations. Discount rate Average annual Terminal growth rate 2017 2016 2015 2017 2016 2015 2017 2016 2015 Russia % % % % % % % % % Ukraine % % % % % % % % % Algeria % % % % )% )% % % % Pakistan % % % % % % % % % Bangladesh % % % % % % % % % Kazakhstan % % % % % % % % % Kyrgyzstan % % % )% )% % % % % Uzbekistan % % % % % % % % % Armenia % % % )% )% )% % % % Georgia % % % % % % % % % Tajikistan n.a. n.a. % n.a. n.a. )% n.a. n.a. % Average operating Average CAPEX as a 2017 2016 2015 2017 2016 2015 Russia % % % % % % Ukraine % % % % % % Algeria % % % % % % Pakistan % % % % % % Bangladesh % % % % % % Kazakhstan % % % % % % Kyrgyzstan % % % % % % Uzbekistan % % % % % % Armenia % % % % % % Georgia % % % % % % Tajikistan n.a. n.a. % n.a. n.a. % Sensitivity to changes in assumptions The following table illustrates the CGUs with limited headroom and potential impairments that would need to be recorded if certain key parameters would adversely change by one percentage point. Any additional adverse changes in the key parameters by more than one percentage point would increase the amount of impairment exposure approximately proportionally. Potential impairment if an assumption changes by 1.0pp CGU Headroom Discount Average Average Average Terminal Bangladesh ) — — — ) Uzbekistan ) ) — ) ) Georgia — — — — — ACCOUNTING POLICIES Goodwill Goodwill is recognized for the future economic benefits arising from net assets acquired that are not individually identified and separately recognized. Goodwill is not amortized but is tested for impairment annually and as necessary when circumstances indicate that the carrying value may be impaired. The Company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the Company's CGUs. These budgets and forecast calculations are prepared for a period of five years. For longer periods, a long-term growth rate is applied to project future cash flows after the fifth year. SOURCE OF ESTIMATION UNCERTAINTY The Group has significant investments in property and equipment, intangible assets, goodwill and other investments. Estimating recoverable amounts of assets and CGUs must, in part, be based on management's evaluations, including the determination of the appropriate CGUs, the relevant discount rate, estimation of future performance, the revenue-generating capacity of assets, timing and amount of future purchases of property and equipment, assumptions of future market conditions and the long-term growth rate into perpetuity (terminal value). In doing this, management needs to assume a market participant perspective. Changing the assumptions selected by management, in particular, the discount rate and growth rate assumptions used to estimate the recoverable amounts of assets, could significantly impact the Group's impairment evaluation and hence results. A significant part of the Group's operations is in countries with emerging markets. The political and economic situation in these countries may change rapidly and recession may potentially have a significant impact on these countries. On-going recessionary effects in the world economy and increased macroeconomic risks impact our assessment of cash flow forecasts and the discount rates applied. There are significant variations between different markets with respect to growth, mobile penetration, average revenue per user ( "ARPU" ), market share and similar parameters, resulting in differences in operating margins. The future development of operating margins is important in the Group's impairment assessments, and the long-term estimates of these margins are highly uncertain. This is particularly the case for emerging markets that are not yet in a mature phase.

OTHER NON-OPERATING LOSSES, NET

OTHER NON-OPERATING LOSSES, NET	12 Months Ended
OTHER NON-OPERATING LOSSES, NET	Dec. 31, 2017
OTHER NON-OPERATING LOSSES, NET
OTHER NON-OPERATING LOSSES, NET	11 OTHER NON-OPERATING LOSSES, NET Other non-operating (losses) / gains consisted of the following for the years ended December 31: 2017 2016 2015 Loss from early debt redemption ) — Change of fair value of embedded derivative ) — Change of fair value of other derivatives ) ) ) Impairment loss of other financial assets ) — ) Gains relating to past acquisitions and divestments — — Other (losses) / gains ) ) Other non-operating losses, net ) ) ) Loss from early debt redemption relates to the settlement of the cash tender offer for certain outstanding debt securities, see Note 17 for further details. The change in fair value of other derivatives mainly relates to derivatives in Russia (refer to Note 17). Included in 'Gains relating to past acquisitions and divestments' is a net gain of US$45 pertaining to indemnification from a past business acquisition, and a gain of US$25 as a result of an increase in cash consideration receivable pertaining to the disposal of Italy operations in 2016.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2017
INCOME TAXES
INCOME TAXES	12 INCOME TAXES Current income tax is the expected tax expense, payable or receivable on taxable income or loss for the period, using tax rates enacted or substantively enacted at reporting date, and any adjustment to tax payable in respect of previous years. Any penalties or interests relating to income tax claims or litigations are included within income tax expense. Income tax expense consisted of the following for the years ended December 31: 2017 2016 2015 Current income taxes Current year Adjustments in respect of previous years ) ) Total current income taxes Deferred income taxes Origination / reversal of temporary differences ) ) ) Changes in tax rates ) Current year tax losses unrecognized Recognition / utilization of previously unrecognized tax losses or tax credits — ) ) Derecognition of previously recognized tax losses — Expiration of tax losses — — Write off deferred tax assets — Adjustments in respect of previous years — Other — ) ) Total deferred tax expense ) Income tax expense EFFECTIVE TAX RATE The table below outlines the reconciliation between the statutory tax rate in the Netherlands (25%) and the effective income tax rates for the Group, together with the corresponding amounts, for the years ended December 31: 2017 2016 2015 (Loss) / profit before tax from continued operations ) ) Income tax benefit at statutory tax rate (25.0%) ) ) Difference due to the effects of: Different tax rates in different jurisdictions ) ) Non-deductible expenses Non-taxable income ) ) ) Adjustments in respect of previous years ) Movement in (un)recognized deferred tax assets Withholding taxes ) Tax claims Change in income tax rate ) Minimum taxes and other Income tax expense Effective tax rate – 1,966.7 % % – 37.0 % EXPLANATORY NOTES TO THE EFFECTIVE TAX RATE Different tax rates in different jurisdictions Certain jurisdictions in which VEON operates have income tax rates which are different to the Dutch statutory tax rate of 25%. In 2017 and 2015, the effective tax rate was positively impacted by taxable income recognized in jurisdictions in which income tax rates are lower than 25%. In 2016, the effective tax rate was negatively impacted by higher taxable income recognized in jurisdictions with higher income tax rates. Non-deductible expenses In 2017, the Group incurred non-deductible expenses primarily in Luxembourg (US$96) and Russia (US$91), in respect of share of loss of joint ventures and associates and impairment of joint ventures and associates. In addition, GTH incurred non-deductible financial and business expenses (US$20). The 2016 non-deductible expenses mainly relate to GTH (US$24), and our operations in Pakistan (US$20) and Tajikistan (US$18). The main item of GTH non-deductible expenses in the amount of US$24 represents a legal provision due to the Iraqna case (refer to Note 22). The non-deductible expenses of US$20 within Pakistan mainly relate to permanent differences due to Final Tax Regime ( "FTR" ) on mobile financial services and site sharing expenses. The FTR is a final tax liability on source income arising from sales, contracts and import of goods and services. Therefore, expenses incurred in deriving such income are treated as non-deductible. For Tajikistan, the non-deductible expenses mainly relate to on-charged intercompany expenses. The 2015 non-deductible expenses mainly relate to the provision recognized regarding the Uzbekistan investigations (Note 22) being non-tax deductible (US$199 tax impact), non-deductible interest expenses recorded in Egypt and non-deductible impairment losses. Non-taxable income In 2017, the Group recognized a non-taxable gain pertaining to indemnification from a past business acquisition (see Note 11), which had a positive impact on the effective tax by US$17. In addition, the Group recognizes permanent differences for non-taxable income in Pakistan under the FTR. Movement in (un)recognized deferred tax assets In 2017, the effective tax rate was impacted by tax losses for which no deferred tax asset was recognized, primary within holding entities in the Netherlands (US$109) and in GTH (US$35), as well as other subsidiaries across the Group (US$10). In addition, deferred tax assets of US$20 previously recognized within holding entities in Luxembourg were written off during the year. In 2016, the effective tax rate was impacted by a US$247 change in recognition of deferred tax assets resulting mainly from tax losses for which no deferred tax asset was recognized in the Netherlands. Furthermore, WIND Telecom SpA had tax losses for which a deferred tax asset had been recognized of US$95. As a result of the Italy Joint Venture we will no longer be able to offset these losses against future profits of our Italian operating company, as a consequence the deferred tax asset of US$95 was written down. At the same time, Bangladesh starts to be profit making and utilizing its tax losses. During 2016, the (positive) results of Bangladesh have been monitored closely. As there were sufficient arguments to start recognizing some of the deferred tax assets on losses, an amount of US$21 was recognized as of December 31, 2016. In 2015, the effective tax rate was impacted by a US$220 change in recognition of deferred tax assets resulting mainly from tax losses for which no deferred tax asset was recognized in Georgia, Egypt and the Netherlands and a re-measurement of deferred tax asset on previous year tax losses in Luxembourg. Adjustments in respect of previous years In 2017, updated tax positions in respect of prior years for Bangladesh and Russia had the effect of increasing tax expense by a net amount of US$58. In 2016, the effect of prior year adjustments of US$3 decreased the effective tax rate and mainly relate to Luxembourg for an amount of US$3 due to adjustment in carry forward losses arising due to filing to annual tax return. In 2015, the effect of prior year adjustments of US$44 increased the effective tax rate and mainly relate to the settlement with the Algerian government, resulting in a tax charge of US$24. Withholding taxes In 2017, the expense related to withholding taxes amounted to US$123, of which US$53 relate to a dividend from the Company's wholly-owned subsidiary in Russia of US$1,060, which is expected to be paid in 2018. Furthermore, it is expected that Algeria and Pakistan will distribute dividends subject to withholding tax in the foreseeable future, resulting in an increase in accruals in 2017 by US$59, whilst the remaining amount relates primarily to withholding taxes in respect of subsidiaries within the Eurasia region. In 2016, the expense related to withholding taxes amounted to US$62. US$25 of such withholding taxes relate to amounts due as a result of a dividend from Russia of US$500 to be paid in 2017. The withholding tax on dividends at CIS level mainly relates to withholding taxes on a dividend from Kyrgyzstan that increased due to expected future dividend distributions during 2017. Furthermore, it is expected that Algeria and Pakistan will distribute dividends being subject to withholding tax in the foreseeable future resulting in an increase in accruals in 2016. In 2015, the effect of withholding taxes on undistributed earnings resulted in a tax benefit of US$179. The amount includes a tax benefit of US$61 relating to a release of accrued Russian withholding taxes on dividends that will be distributed and a release of accrued withholding taxes for the Algerian capital gain taxes and distributed dividends (US$59). Tax claims In 2017, tax claims relate primarily to increases in uncertain income tax positions in Russia and GTH, offset by a reversal in Tajikistan, resulting in a net impact on income tax expense of US$24 (see also Note 22). Change in income tax rate In 2017, the effective tax rate of the Group was impacted by changes in tax rates, primarily a decrease in the nominal tax rate in Pakistan (from 31% to 30% in 2017), resulting in a total tax benefit of US$9. In 2016, changes in income tax rates of US$7 decreased the effective tax rate. The nominal tax rate decreased in Pakistan (from 32% to 31% in 2016). In 2015, the increase of the effective tax rate was mainly caused by the nominal tax rate increase in Uzbekistan (from 7.5% to 53% as from 2016). DEFERRED TAXES The Group reported the following deferred tax assets and liabilities in the statement of financial position as of December 31: 2017 2016 Deferred tax assets Deferred tax liabilities ) ) Net deferred tax position ) The following table shows the movements of the deferred tax assets and liabilities in 2017: Movement in deferred taxes Opening Net Changes in Other Currency Tax Closing Property and equipment, net ) ) — ) ) — ) Intangible assets, net ) — — ) — ) Trade receivables — ) ) — Other assets ) ) — — ) Provisions — ) — Long-term debt ) — ) — Accounts payable — ) — Other liabilities ) — ) — Other movements and temporary differences ) — — — — ) Deferred subnational income taxes and other ) — ) — Withholding tax on distributed earnings ) ) — ) — ) ) ) — ) — ) Tax losses and other balances carried forwards ) — ) — Non-recognized deferred tax assets on losses and credits ) — — ) — — ) Non-recognized deferred tax assets on temporary differences ) — — — — — Net deferred tax positions ) — ) — ) The movement in the net deferred tax position in 2017 primarily relates to WHT deferred liability on increased dividends from Pakistan and Russia. The following table shows the movements of the deferred tax assets and liabilities in 2016: Movement in deferred taxes Opening Net Changes in Other Currency Tax Closing Property and equipment, net ) ) ) Intangible assets, net ) ) ) ) ) Trade receivables — ) ) — Other assets ) — — ) — ) Provisions ) — Long-term debt — ) — Accounts payable — — Other liabilities ) — Other movements and temporary differences — — — Deferred subnational income taxes and other ) ) — — ) Withholding tax on distributed earnings ) ) — — ) — ) ) ) — ) Tax losses and other balances carried forwards* ) ) ) ) Non-recognized deferred tax assets on losses and credits * ) — — ) ) Non-recognized deferred tax assets on temporary differences ) ) — — — ) Net deferred tax positions ) ) ) — * The deferred tax movements in other comprehensive income in 2016 relates to non-recognized deferred tax asset on losses of US$3 for Wind Telecom S.p.A. The movement in net deferred tax position mainly relates to recognition of losses for Pakistan due to the acquisition of Warid. As of December 31, 2016, the amount of deductible temporary differences for which no deferred tax asset was recognized amounted to US$27 for Georgia. VEON recognizes a deferred tax asset for the carry forward of unused tax losses and other carry forwards to the extent that it is probable that the deferred tax asset will be utilized. The amount and expiry date of unused tax losses and other carry forwards for which no deferred tax asset is recognized are as follows: As of December 31, 2017 0 - 5 years 6 - 10 years More than Indefinite Total Tax losses expiry Recognized losses ) ) — ) ) Recognized DTA — Non-recognized losses ) ) — ) ) Non-recognized DTA — As of December 31, 2017 0 - 5 years 6 - 10 years More than Indefinite Total Other credits carried forwards expiry Recognized credits ) — — — ) Recognized DTA — — — Non-recognized credits — — — — — Non-recognized DTA — — — — — As of December 31, 2016 0 - 5 years 6 - 10 years More than Indefinite Total Tax losses expiry Recognized losses ) — — ) ) Recognized DTA — — Non-recognized losses ) ) — ) ) Non-recognized DTA — Other credits carried forwards expiry Recognized credits ) — — — ) Recognized DTA — — — Non-recognized credits — — — ) ) Non-recognized DTA — — — Losses mainly relate to our holding entities in Luxembourg (2017: US$6,532, 2016: US$5,126) and the Netherlands (2017: US$2,474, 2016: US$2,148), of which US$28 (2016: US$80) is recognized in the consolidated statement of financial position. VEON reports the tax effect of the existence of undistributed profits that will be distributed in the foreseeable future. The Company has a deferred tax liability of US$116 (2016: US$73) relating to the tax effect of the undistributed profits that will be distributed in the foreseeable future, primarily in relation to its Russian, Algerian and Pakistan operations. At December 31, 2017, undistributed earnings of VEON's foreign subsidiaries (outside the Netherlands) which are indefinitely invested and will not be distributed in the foreseeable future, amounted to US$6,833 (2016: US$8,495). Accordingly, no deferred tax liability is recognized for this amount of undistributed profits. TAXES RECORDED OUTSIDE THE INCOME STATEMENT In 2017, a current tax charge and a deferred tax benefit of US$6 and US$102, respectively, was reported outside of the income statement in respect of foreign exchange losses for intercompany loans between our subsidiaries in Uzbekistan and Russia, denominated in U.S. dollars, recognized directly in equity. In addition, the Company recorded a net deferred tax charge of nil in respect of cash flow hedge movements recognized directly in equity in 2017 (2016: US$5, 2015: US$5). In 2015, the amount of current and deferred taxes recorded outside of the income statement amounts to US$348 comprising of US$345 current tax charge and US$(3) deferred tax charge. The current tax charge mainly relates to the Algerian capital gain tax of US$428, of which US$350 was recognized directly in equity. INCOME TAX ASSETS The Company reported both current and non-current income tax assets, totaling US$258 (2016: US$194). These tax assets mainly relate to advance tax payments in Pakistan, Bangladesh and Ukraine which can only be offset against income tax liabilities in fiscal periods subsequent to balance sheet date. ACCOUNTING POLICIES Income taxes Income tax expense represents the aggregate amount determined on the profit for the period based on current tax and deferred tax. In cases where the tax relates to items that are charged to other comprehensive income or directly to equity, the tax is also charged respectively to other comprehensive income or directly to equity. Uncertain tax positions The Group's policy is to comply with the applicable tax regulations in the jurisdictions in which its operations are subject to income taxes. The Group's estimates of current income tax expense and liabilities are calculated assuming that all tax computations filed by the Company's subsidiaries will be subject to a review or audit by the relevant tax authorities. The Company and the relevant tax authorities may have different interpretations of how regulations should be applied to actual transactions (refer Note 22 and Note 26, respectively, for further details regarding provisions recognized and risks and uncertainties). Such uncertain tax positions are accounted for in accordance with IAS 12 'Income Taxes' or IAS 37 'Provisions, Contingent Liabilities and Contingent Assets' depending on the type of tax in question. Deferred taxation Deferred taxes are recognized using the liability method and thus are computed as the taxes recoverable or payable in future periods in respect of deductible or taxable temporary differences between the tax bases of assets and liabilities and their carrying amounts in the Company's financial statements. SOURCE OF ESTIMATION UNCERTAINTY Deferred tax assets and uncertain tax positions Deferred tax assets are recognized to the extent that it is probable that the assets will be realized. Significant judgment is required to determine the amount that can be recognized and depends foremost on the expected timing, level of taxable profits, tax planning strategies and the existence of taxable temporary differences. Estimates made relate primarily to losses carried forward in some of the Group's foreign operations. When an entity has a history of recent losses, the deferred tax asset arising from unused tax losses is recognized only to the extent that there is convincing evidence that sufficient future taxable profit will be generated. Estimated future taxable profit is not considered such evidence unless that entity has demonstrated the ability by generating significant taxable profit for the current year or there are certain other events providing sufficient evidence of future taxable profit. New transactions and the introduction of new tax rules may also affect judgments due to uncertainty concerning the interpretation of the rules and any transitional rules. Uncertain tax positions are recognized when it is probable that a tax position will not be sustained, and the amount can be reliably measured. The expected resolution of uncertain tax positions is based upon management's judgment of the likelihood of sustaining a position taken through tax audits, tax courts and/or arbitration, if necessary. Circumstances and interpretations of the amount or likelihood of sustaining a position may change through the settlement process. Furthermore, the resolution of uncertain tax positions is not always within the control of the Group and it is often dependent on the efficiency of the legal processes in the relevant taxing jurisdictions in which the Group operates. Issues can, and often do, take many years to resolve. See also Note 26 for further information.

INVESTMENTS IN SUBSIDIARIES

INVESTMENTS IN SUBSIDIARIES	12 Months Ended
INVESTMENTS IN SUBSIDIARIES	Dec. 31, 2017
INVESTMENTS IN SUBSIDIARIES
INVESTMENTS IN SUBSIDIARIES	13 INVESTMENTS IN SUBSIDIARIES The Company held investments in the significant subsidiaries for the years ended December 31 as detailed in the table below. The equity interest presented represents the economic rights available to the Company. Equity Country of Nature of Name of significant subsidiary 2017 2016 VEON Amsterdam B.V. Netherlands Holding % % VEON Holdings B.V. Netherlands Holding % % PJSC VimpelCom Russia Operating % % JSC "Kyivstar" Ukraine Operating % % LLP "KaR-Tel" Kazakhstan Operating % % LLC "Tacom" Tajikistan Operating % % LLC "Unitel" Uzbekistan Operating % % LLC "VEON Georgia" Georgia Operating % % CJSC "VEON Armenia" Armenia Operating % % LLC "Sky Mobile" Kyrgyzstan Operating % % VimpelCom Lao Co. Ltd. Lao PDR Operating % % VEON Luxembourg Holdings S.à r.l. Luxembourg Holding % % VEON Luxembourg Finance Holdings S.à r.l. Luxembourg Holding % % VEON Luxembourg Finance S.A. Luxembourg Holding % % Global Telecom Holding S.A.E Egypt Holding % % Omnium Telecom Algérie S.p.A.* Algeria Holding % % Optimum Telecom Algeria S.p.A.* Algeria Operating % % Pakistan Mobile Communications Limited Pakistan Operating % % Banglalink Digital Communications Limited Bangladesh Operating % % Wind Telecom S.p.A.** Italy Holding — % * The Group has concluded that it controls Omnium Telecom Algérie S.p.A and Optimum Telecom Algeria S.p.A even though its subsidiary, Global Telecom Holding S.A.E. owns less than 50% of the ordinary shares. This is because the Company can exercise operational control through a shareholders' agreement. ** On December 1, 2017, Wind Telecom S.p.A. merged into VEON Holdings. Pursuant to local laws and regulations and covenants in agreements relating to indebtedness, subsidiaries may be restricted from declaring or paying dividends to VEON. The company holds and controls its investments in Omnium Telecom Algérie S.p.A., Optimum Telecom Algeria S.p.A, Pakistan Mobile Communications Limited, Warid Telecom Limited and Banglalink Digital Communications Limited ( "Banglalink" ) through its subsidiary GTH, in which it holds a 57.7% interest as of balance sheet date. MATERIAL PARTLY-OWNED SUBSIDIARIES Financial information of subsidiaries that have material non-controlling interests ( "NCIs" ) is provided below: Equity Book values of Profit / Name of significant subsidiary 2017 2016 2017 2016 2017 2016 LLP "KaR-Tel" ( "Kar-Tel" ) % % LLC "Sky Mobile" ( "Sky Mobile" ) % % ) Global Telecom Holding S.A.E ( "GTH" ) % % ) ) ) Omnium Telecom Algérie S.p.A. ( "OTA" ) % % The summarized financial information of these subsidiaries before intercompany eliminations for the years ended December 31 are detailed below. Note that the amount of non-controlling interests presented for OTA of 73.7% represents the non-controlling interests in Algeria of 54.4% and the non-controlling interests in GTH, the intermediate parent company in Egypt, of 42.3%. Summarized income statement Kar-Tel Sky Mobile GTH OTA 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Operating revenue Operating expenses ) ) ) ) ) ) ) ) ) ) ) ) Other (expenses) / income ) ) ) ) ) ) ) ) ) Profit / (loss) before tax ) Income tax expense ) ) ) ) ) ) ) ) ) ) ) ) Profit / (loss) for the year ) ) ) Total comprehensive income / (loss) ) ) ) Attributed to NCIs ) ) Dividends paid to NCIs — — — — — — — — — ) Summarized statement of financial position Kar-Tel Sky Mobile GTH OTA 2017 2016 2017 2016 2017 2016 2017 2016 Property and equipment Intangible assets Other non-current assets Trade and other receivables Cash and cash equivalents Other current assets Financial liabilities — — — — ) ) ) ) Provisions ) ) ) ) ) ) ) ) Other liabilities ) ) ) ) ) ) ) ) Total equity Attributed to: Equity holders of the parent Non-controlling interests ) ) Summarized statement of cash flows Kar-Tel Sky Mobile GTH OTA 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net operating cash flows ) ) Net investing cash flows ) ) ) ) ) ) ) ) ) ) ) Net financing cash flows ) ) ) — ) ) ) ) ) ) ) ) Effect of exchange rate changes on cash and cash equivalents — ) — ) ) ) ) ) ) ) ) Net increase / (decrease) in cash equivalents ) ) ) ) ) ) ) ) ) ) ) SIGNIFICANT ACCOUNTING JUDGEMENT Control over subsidiaries Subsidiaries, which are those entities over which the Company is deemed to have control, are consolidated. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In certain circumstances, significant judgment is required to assess if the Company is deemed to have control over entities where the Company's ownership interest does not exceed 50%.

INVESTMENTS IN JOINT VENTURES A

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES	12 Months Ended
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES	Dec. 31, 2017
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES	14 INVESTMENTS IN JOINT VENTURES AND ASSOCIATES The Company held investments in the following joint ventures and associates for the years ended December 31: Equity Country of Nature of Name of significant joint venture 2017 2016 VIP-CKH Luxembourg S.à.r.l.* Luxembourg Holding % % VIP-CKH Ireland Limited* Ireland Financing % % Euroset Holding N.V. ( "Euroset" ) Russia Operating % % * Together, the "Italy Joint Venture", see "Significant accounting judgement" below, in this Note 14). The following table provides aggregated financial information for the Group's joint ventures and associates: Italy Joint Euroset Other Total As of January 1, 2015 — Share of profit / (loss) — ) Reclassified to assets held for sale — — ) ) Foreign currency translation — ) ) ) As of December 31, 2015 — Acquisitions — — Share of profit / (loss) ) ) Impairment of Euroset — ) — ) Foreign currency translation ) ) ) As of December 31, 2016 — Share of loss of joint ventures ) ) — ) Share of other comprehensive loss ) — — ) Impairment of Euroset — ) — ) Foreign currency translation — As of December 31, 2017 — — ITALY JOINT VENTURE The Italy Joint Venture includes VIP-CKH Luxembourg S.à r.l and its subsidiaries, which hold the combined businesses of Wind and 3 Italia, and the financing company VIP-CKH Ireland Limited. On November 5, 2016, the Company completed the transaction with CK Hutchison Holdings Ltd to form a joint venture in Italy, combining their respective businesses. Refer to Note 5 for further details. Summarized financial information The information of the Italy Joint Venture disclosed below reflects the amounts presented in the financial statements of the relevant joint venture and not the Group's share of those amounts, unless otherwise stated. The information presented below has been amended to reflect adjustments made by the Company when using the equity method, including fair value adjustments and modifications for differences in accounting policy. Income statement and statement of comprehensive income 2017 2016* Operating revenue Operating expenses ) ) Other expenses ) ) Income tax expenses ) ) Loss for the period ) Other comprehensive loss ) — Total comprehensive loss ) * Results for 2016 are included from November 5, 2016, being the date the joint venture was formed. Included within 'Operating expenses' is depreciation and amortization expense of US$2,063 in 2017 (2016: US$290). Included within 'Other expenses' is interest expense of US$484 of interest expense (2016: US$68). Statement of financial position 2017 2016* Non-current assets Current assets Assets held for sale Total assets Non-current liabilities ) ) Current liabilities ) ) Liabilities relating to assets held for sale ) — Total liabilities ) ) Net assets Reconciliation to carrying amounts Company's equity interest % % Company's share of Italy Joint Venture net assets Carrying amount Included in the balances disclosed above are the following: Cash and cash equivalents Current financial liabilities* ) ) Non-current financial liabilities* ) ) * Financial liabilities exclude trade and other payables and provisions. There were no dividends received from the Italy Joint Venture in 2017 or 2016. The Italy Joint Venture is restricted from making dividend distributions and certain other payments to VEON as a result of existing covenants in the financing documents, which govern the secured debt of the Italy Joint Venture. Segment information As disclosed in Note 7, the Italy Joint Venture is a separate reportable segment. Financial information for the years ended December 31 is presented below. 2017 2016* Revenue External customers Inter-segment — Total revenue Adjusted EBITDA Other disclosures Capital expenditure * Results for 2016 are included from November 5, 2016, being the date the joint venture was formed. The following table provides a reconciliation of Adjusted EBITDA to (loss) / profit for the period for the Italy Joint Venture, for the years ended December 31. 2017 2016* Adjusted EBITDA Depreciation and amortization ) ) Impairment of non-current assets ) — Gain / (loss) on disposals of non-current assets ) — Net finance costs ) ) Other non-operating (losses) / gains ) Income tax expenses ) ) (Loss) / profit for the period ) * Results for 2016 are included from November 5, 2016, being the date the joint venture was formed. Refinancing of Wind Tre S.p.A. On October 24, 2017, the Italy Joint Venture, through its wholly-owned subsidiary, Wind Tre S.p.A ( "Wind Tre" ), entered into a senior facilities agreement with a group of 21 international banks consisting of a EUR 3.0 billion (approximately US$3.5 billion) five year term loan with interest based on a leverage grid (beginning at 2.0%) (the "Wind Tre Facility A" ), and a EUR 400 million (approximately US$470) five year revolving credit facility with interest based on a leverage grid (beginning at 1.75%). On November 3, 2017, Wind Tre drew down the Wind Tre Facility A and issued EUR 5.6 billion (approximately US$6,516) and US$2.0 billion of senior secured notes, consisting of EUR 2.250 billion Senior Secured Floating Rate Notes due 2024, EUR 1.625 billion 2.625% Senior Secured Notes due 2023, EUR 1.750 billion 3.125% Senior Secured Notes due 2025 and US$2.0 billion 5.0% Senior Secured Notes due 2026 (collectively, the "Wind Tre Notes" ). Proceeds from the Wind Tre Facility A and Wind Tre Notes were used to repay outstanding amounts under Wind Tre then-existing senior term loan facility and repaid loans with Wind Tre's subsidiary, Wind Acquisition Finance S.A. (" WAF "), who then used the funds to repay all of WAF's senior secured and senior notes. EUROSET In Q4 2016, due to operational underperformance of Euroset, the Company recorded an impairment of US$99. During Q2 2017, due to the continued operational underperformance of Euroset, the Company has revised its previous estimates and assumptions regarding Euroset's future cash flows. As a result, the Company impaired the remaining carrying value of the investment in Euroset. The recoverable amount of Euroset was determined using fair value less costs of disposal, based on a Level 3 fair value derived from a discounted cash flow model. Key assumptions Q2 2017 Q4 2016 Discount rate (functional currency) % % Average annual revenue growth rate during forecast period (functional currency) % % Terminal growth rate % % Average operating (EBITDA) margin during forecast period % % Average capital expenditure as a percentage of revenue % % ACCOUNTING POLICIES The Company's investments in its associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Company's share of net profit after tax, other comprehensive income and equity of the associate or joint venture since the acquisition date. The Company assesses, at the end of each reporting period, whether there are any indicators that an investment in a Joint Venture may be impaired. If there are such indicators, the Company estimates the recoverable amount of the joint venture after applying the equity method. SIGNIFICANT ACCOUNTING JUDGEMENT Investment in Italy Joint Venture VEON holds an interest in: • 50% of the issued share capital of VIP-CKH Luxembourg S.à r.l (which holds the combined businesses of WIND and 3 Italia and includes a EUR 5,114 million Shareholder Loan payable); and • 50% investment in newly incorporated financing entity, VIP-CKH Ireland Limited (which includes the EUR 5,114 million Shareholder Loan receivable). (together, the "Italy Joint Venture" ). Both joint arrangements are classified as joint ventures in accordance with IFRS 11 'Joint Arrangements' , based on the following: • The legal structure of the arrangement and the legal rights and obligations arise from the limited liability company, which grant equal shareholdings and profit rights to the shareholders; • The activities relevant for the purposes of determining control require unanimous consent from both shareholders. In this context, it was also concluded that the investment in the two joint ventures shall be considered to be accounted for in the aggregate, rather than as two separate joint ventures. A key consideration in this determination was the shareholder agreement which stipulates that decisions about the activities of the joint ventures (including dividend distributions and shareholder loan repayments) require unanimous consent from both shareholders. This conclusion required substantial judgment as to the application of accounting guidance. Refer Note 5 for more details regarding the Company's acquisition of its interest in the Italy Joint Venture.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
PROPERTY AND EQUIPMENT	Dec. 31, 2017
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	15 PROPERTY AND EQUIPMENT The following table summarizes the movement in property and equipment for the years ended December 31: Telecommunications Land, Office and Equipment not Total Cost As of January 1, 2016 Acquisition (Note 5) Additions Disposals ) ) ) ) ) Transfer ) — Translation adjustment ) As of December 31, 2016 Reclassified to assets held for sale (Note 5) ) ) ) ) ) Additions Disposals ) ) ) ) ) Transfer ) — Translation adjustment ) ) ) ) As of December 31, 2017 Accumulated depreciation and impairment As of January 1, 2016 ) ) ) ) ) Transfer ) ) ) — Depreciation charge for the year ) ) ) — ) Disposals Impairment ) ) ) ) ) Translation adjustment ) ) ) ) As of December 31, 2016 ) ) )) ) ) Reclassified to assets held for sale (Note 5) — Transfer ) — Depreciation charge for the year ) ) ) — ) Disposals Impairment ) — — ) ) Translation adjustment ) As of December 31, 2017 ) ) ) ) ) Net book value As of January 1, 2016 As of December 31, 2016 As of December 31, 2017 Non-cash investing activities In 2017, VEON acquired property and equipment in the amount of US$441 (2016: US$699), which was not paid for as of respective year end. Changes in estimates During 2017, there were no other material change in estimates related to property and equipment other than the impairment described in Note 10 of US$15 (2016: US$100), and accelerated depreciation in Pakistan, Ukraine and Bangladesh pertaining to network modernization activities US$74 (2016: US$153). Additional information Property and equipment pledged as security for bank borrowings amounts to US$875 as of December 31, 2017 (2016: US$1,029), and primarily relate to securities for borrowings of PMCL (refer to Note 17 for details regarding amounts borrowed). During 2017, VEON capitalized interest in the cost of property and equipment in the amount of US$3 (2016: US$5). In 2017, the capitalization rate was 8.3% (2016: 10.3%). ACCOUNTING POLICIES Property and equipment is stated at cost, net of any accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows: Class of property and equipment Useful life Telecommunication equipment 3 - 20 years Buildings and constructions 10 - 50 years Office and other equipment 3 - 10 years Each asset's residual value, useful life and method of depreciation is reviewed at the end of each financial year and adjusted prospectively, if necessary. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time (longer than six months) to get ready for its intended use are capitalized as part of the cost of the respective qualifying assets. All other borrowing costs are expensed in the period incurred. SOURCE OF ESTIMATION UNCERTAINTY Depreciation and amortization of non-current assets Depreciation and amortization expenses are based on management estimates of useful life, residual value and amortization method of property and equipment and intangible assets. Estimates may change due to technological developments, competition, changes in market conditions and other factors and may result in changes in the estimated useful life and in the amortization or depreciation charges. Technological developments are difficult to predict and our views on the trends and pace of development may change over time. Some of the assets and technologies, in which the Group invested several years ago, are still in use and provide the basis for new technologies. The useful lives of property and equipment and intangible assets are reviewed at least annually, taking into consideration the factors mentioned above and all other relevant factors. Estimated useful lives for similar types of assets may vary between different entities in the Group due to local factors such as growth rate, maturity of the market, historical and expected replacements or transfer of assets and quality of components used.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
INTANGIBLE ASSETS	Dec. 31, 2017
INTANGIBLE ASSETS
INTANGIBLE ASSETS	16 INTANGIBLE ASSETS The following table summarizes the movement in intangible assets for the years ended December 31: Telecommunications Software Brands and Customer Other Total Cost As of January 1, 2016 Acquisition in Pakistan (Note 5) — Additions — — ) Disposals ) ) — ) ) ) Transfer — — — ) — Translation adjustment ) ) As of December 31, 2016 Reclassified to assets held for sale (Note 5) ) — — — — ) Additions — — Disposals ) ) — — ) ) Transfer — — — ) — Translation adjustment ) ) ) ) ) ) As of December 31, 2017 Accumulated amortization and impairment As of January 1, 2016 ) ) ) ) ) ) Amortization charge for the year ) ) ) ) ) ) Disposals — Impairment ) ) — — — ) Translation adjustment ) ) ) ) As of December 31, 2016 ) ) ) ) ) ) Reclassified to assets held for sale — — — — Amortization charge for the year ) ) ) ) ) ) Disposals — — Translation adjustment As of December 31, 2017 ) ) ) ) ) ) Net book value As of January 1, 2016 As of December 31, 2016 As of December 31, 2017 On May 16, 2017, PMCL participated in an auction for the acquisition of additional 4G/LTE spectrum in Pakistan. PMCL was awarded 10 MHz paired spectrum in the 1800 MHz band for a total consideration of US$295 million, plus withholding tax of 10% representing payment of income tax in advance. Non-cash investing activities During 2017, VEON acquired intangible assets in the amount of US$92 (2016: US$194), which was not paid for as of respective year end. Changes in estimates During 2017, there were no other material change in estimates related to intangible assets other than accelerated amortization of US$45 pertaining to brands and trademarks in Pakistan. Additional information As of December 31, 2017, no intangible assets were pledged as collateral and no assets have restrictions on title. During 2017 and 2016, VEON did not capitalize any interest within the cost of intangible assets. ACCOUNTING POLICIES Intangible assets acquired separately are measured initially at cost and are subsequently measured at cost less accumulated amortization and impairment losses. Intangible assets with a finite useful life are generally amortized with the straight-line method over the estimated useful life of the intangible asset. The amortization period and the amortization method for intangible assets with finite useful lives are reviewed at least annually. SOURCE OF ESTIMATION UNCERTAINTY Depreciation and amortization of non-current assets Refer also to Note 15 for further details regarding source of estimation uncertainty. Significant estimates in the evaluation of useful lives for intangible assets include, but are not limited to, the estimated average customer relationship based on churn, the remaining license or concession period and the expected developments in technology and markets. The actual economic lives of intangible assets may be different than estimated useful lives, thereby resulting in a different carrying value of intangible assets with finite lives. We continue to evaluate the amortization period for intangible assets with finite lives to determine whether events or circumstances warrant revised amortization periods. A change in estimated useful lives is a change in accounting estimate, and depreciation and amortization charges are adjusted prospectively.

FINANCIAL ASSETS AND LIABILITIE

FINANCIAL ASSETS AND LIABILITIES	12 Months Ended
FINANCIAL ASSETS AND LIABILITIES	Dec. 31, 2017
FINANCIAL ASSETS AND LIABILITIES
FINANCIAL ASSETS AND LIABILITIES	17 FINANCIAL ASSETS AND LIABILITIES Set out below is the carrying value of the Company's financial instruments, together with a comparison, by class, of the carrying amounts and fair value of the Company's financial instruments that are recognized in the consolidated financial statements as of December 31, other than those with carrying amounts that are reasonable approximations of fair values. Details regarding how fair value is determined for each class of financial instruments is disclosed later in this Note. FINANCIAL ASSETS The Company holds the following financial assets as of December 31: Carrying Fair value Financial assets 2017 2016 2017 2016 Financial assets at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts Embedded derivatives in notes Financial assets at fair value Available for sale financial assets Total financial assets at fair value Loans granted, deposits and other financial assets Bank deposits and interest accrued Cash pledged as collateral* — — Other investments Other loans granted Total loans granted, deposits and other financial assets Total financial assets Non-current Current * As of December 31, 2017, cash balances of US$987 are pledged as collateral for the Mandatory Tender Offer for the purchase of shares of GTH, refer to Note 5 for further details. FINANCIAL LIABILITIES The Company holds the following financial liabilities as of December 31: Carrying value Fair value Financial Liabilities 2017 2016 2017 2016 Financial liabilities at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — Contingent consideration Financial liabilities at fair value Derivatives designated as net investment hedges Cross currency interest rate exchange contracts — — Derivatives designated as cash flow hedges Foreign exchange contracts — — Interest rate exchange contracts Total financial liabilities at fair value Financial liabilities at amortized cost Bank loans and bonds, principal Interest accrued Discounts, unamortized fees, hedge basis adjustment ) — — Bank loans and bonds at amortized cost Put-option liability over non-controlling interest Other financial liabilities Total financial liabilities at amortized cost Total financial liabilities Non-current Current Bank loans and bonds The Company had the following principal amounts outstanding for interest-bearing loans and bonds at December 31: Principalamountoutstanding Borrower Type of debt Guarantor Currency Interest rate Maturity 2017 2016 VEON Holdings Loans None RUB 8.75% - 10.0% 2022 — VEON Holdings Notes None (2016: PJSC VimpelCom) US$ 5.2% - 5.95% 2019 - 2023 VEON Holdings Notes None US$ 3.95% - 4.95% 2021 - 2024 — VEON Holdings Loans None EUR 3mEURIBOR + 1.9% - 2.75% 2022 — VEON Holdings Notes PJSC VimpelCom US$ 7.5% 2022 VEON Holdings Syndicated loan (RCF) None US$ 1mLIBOR + 2.25% 2018 — VEON Holdings Notes None RUB 9.0% 2018 VEON Holdings Notes PJSC VimpelCom US$ 6.25% 2017 — GTH Finance B.V. Notes VEON Holdings B.V. US$ 6.25% - 7.25% 2020 - 2023 VIP Finance Ireland Eurobonds None US$ 7.748% - 9.1% 2018 - 2021 PMCL Loans None PKR 6mKIBOR + 0.35% - 0.8% 2020 - 2022 PMCL Loans EKN* US$ 6mLIBOR + 1.9% 2020 Banglalink Senior Notes None US$ 8.6% 2019 PJSC VimpelCom Ruble Bonds None RUB 10.0% - 11.9% 2017 PJSC VimpelCom Loans None RUB 12.75% 2017 - 2018 — VEON Amsterdam Loans None US$ 1mLibor + 3.3% 2017 — Omnium Telecom Algeria SpA Syndicated loan None DZD Bank of Algeria re-discount rate + 2.0% 2019 — Other loans Total bank loans and bonds * Exportkreditnämnden (The Swedish Export Credit Agency) Termination of Guarantees On June 30, 2017, the guarantees issued by VEON Holdings under each of the RUB 12,000 million 9.00% notes due 2018 (the "RUB Notes" ), the US$600 5.20% notes due 2019 (the "2019 Notes" ) and the US$1,000 5.95% notes due 2023 (the "2023 Notes" , and together with the RUB Notes and the 2019 Notes, the "Notes" ), issued by PJSC VimpelCom, were terminated. VEON Holdings exercised its option to terminate the guarantees pursuant to the terms of the trust deeds entered into in respect of the Notes, between VEON Holdings, PJSC VimpelCom and BNY Mellon Corporate Trustee Services Limited, each dated February 13, 2013 (together the "Trust Deeds" ). The guarantees in respect of each of the Notes will continue to apply to VEON Holdings' obligation to redeem the Notes on exercise of the put option under each of the Trust Deeds until that put option has expired or been satisfied. Reconciliation of cash flows from financing activities Bank loans and bondsat amortized cost Balance as of January 1, 2017 Cash flows Proceeds from borrowings, net of fees paid Repayment of borrowings ) Interest paid ) Non-cash movements Interest accrued Early redemption premium accrued* Foreign currency translation Other non-cash movements Balance as of December 31, 2017 * Early redemption premium accrued in respect of the settlement of the cash tender offer for certain outstanding debt securities, see below for further information. The amount accrued relates to the excess of purchase price over the principal amount outstanding, which, together with the release of unamortized debt issuance costs and unamortized fair value hedge basis adjustment, resulted in a loss from early debt redemption of US$124, recorded within "Other non-operating gains/losses" (refer to Note 11). Issuance of New Notes and Cash Tender Offer for Certain Outstanding Debt Securities On May 30, 2017, VEON Holdings announced a cash tender offer (the "Offer" ) in respect of the outstanding (i) U.S.$1,000 9.125% Loan Participation Notes due 2018 issued by, but with limited recourse to, VIP Finance Ireland Limited (the "2018 Notes" ), (ii) U.S.$1,000 7.748% Loan Participation Notes due 2021 issued by, but with limited recourse to, VIP Finance Ireland Limited (the "2021 Notes" ) and (iii) U.S.$1,500 7.5043% Guaranteed Notes due 2022 issued by VEON Holdings (the "2022 Notes" and together with the 2018 Notes and the 2021 Notes, the "Existing Notes" ). The aggregate principal amount accepted for repurchase was US$1,259, which was settled on or before June 29, 2017. The unamortized debt issuance costs and unamortized fair value hedge basis adjustment were released to the income statement at the date of the closing, which, together with the early redemption premium, resulted in a loss from early debt redemption of US$124, recorded within "Other non-operating gains/losses" (refer to Note 11). On June 16, 2017, VEON Holdings issued US$600 3.95% Senior Notes due 2021 and US$900 4.95% Senior Notes due 2024 (together, the "New Notes" ). The net proceeds of the New Notes were used to finance the purchase of the Existing Notes and for general corporate purposes. DERIVATIVES AND HEDGING ACTIVITIES Financial instruments and hedging policy The Company applies cash flow hedge accounting using financial instruments (usually derivatives) to mitigate some or all of the risk of a hedged item. Any gains or losses on the hedging instrument (generally a derivative) are initially recorded in other comprehensive income. The amount included in other comprehensive income is the lesser of the fair value of the hedging instrument and the hedged item. Where the hedging instrument's change in fair value is greater than that of the hedged item, the excess is recorded in profit or loss as ineffectiveness. Gains or losses deferred in other comprehensive income are reclassified to the income statement when the hedged item affects the income statement. The Company also applies net investment hedge accounting to mitigate foreign currency risk related to the Company's foreign operations. The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognized in other comprehensive income. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognized in other comprehensive income shall be reclassified from equity to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation. Any derivative instruments for which no hedge accounting is applied are recorded at fair value with any fair value changes recognized directly in profit or loss. Derivative financial instruments VEON uses derivative instruments, including swaps, forward contracts and options to manage certain foreign currency and interest rate exposures. The Company has designated a portion of its derivative contracts, which mainly relate to hedging the interest and foreign exchange risk of external debt and net investments in foreign operations, as formal hedges and applies hedge accounting on these derivative contracts. Cash flows arising from derivative instruments for which hedge accounting is applied are reported in the statement of cash flows in the same line where the underlying cash flows of the hedged item are recorded. Put options over non-controlling interest of a subsidiary are accounted for as financial liabilities in the Company's consolidated financial statements. The put-option redemption liability is measured at the discounted redemption amount. Interest over the put-option redemption liability will accrue in line with the effective interest rate method, until the options have been exercised or are expired. Embedded derivatives in Notes The Notes issued by the Company's Bangladesh subsidiary, Banglalink Digital Communications Ltd. ( "Banglalink" ), include early repayment options. Accordingly, Banglalink can repay the debt at certain dates prior to the maturity date at agreed redemption prices. These embedded derivatives are accounted for as financial assets at fair value through profit or loss. Net investment hedge in foreign operations During the month of June 2017, the Group entered into several cross-currency swaps with several different banks, by exchanging a notional amount of US$600 for EUR 537 million for 4 years. The swaps mature June 16, 2021. These derivatives were subsequently designated as hedging instruments in a hedge of net investment in foreign operations in which the Italy joint-venture is the hedged item. Additionally, the Company designated term loans drawn during 2017, maturing in 2022, and with an aggregate, EUR-denominated principal amount of EUR 627 million as hedging instruments in a hedge of net investment in foreign operations in which the Italy joint-venture is the hedged item. Losses of US$125 recognized in 2017, relating to the net investment hedge are recognized in the "Foreign currency translation" line item within the consolidated statement of comprehensive income. Interest rate swap contracts The Company's Pakistan subsidiary, PMCL, entered into several Interest Rate Swap Agreements to reduce the cash flow volatility due to variable debt interest payments. Pursuant to these agreements, Pakistan Mobile Communications Limited pays a fixed rate of 8.15% - 8.72% and receives KIBOR three- or six-month floating rate on an outstanding notional amount of PKR 10,350 million as of December 31, 2017 (2016: PKR 16,483 million), which will amortize until maturity along with the principal of the underlying debt. The swaps expire between May 16, 2019 and December 23, 2019. Derivatives not designated as hedging instruments The Company uses foreign currency denominated borrowings, foreign exchange swaps, options and forward currency contracts to manage its transaction exposures. These currency forward contracts are not designated as cash flow, fair value or net investment hedges and are entered into for periods consistent with currency transaction exposures, generally from one to six months. Although the instruments have not been designated in a hedge relationship, they act as an economic hedge and offset the underlying transaction when they occur. Derivatives under hedge accounting The Company uses cross currency interest rate swaps, interest rate swaps, foreign exchange forwards / swaps, options and zero cost collars to manage its exposure to variability in cash flows that is attributable to foreign exchange and interest rate risk to loans and borrowings. Most of these derivative contracts are either designated as cash flow, fair value or net investment hedges and are entered into for periods up to the maturity date of the hedged loans and borrowings. The following table sets out the Company's hedge accounting with derivatives as hedging items as of December 31: Nominalvalue Fair valueof assets Fair valueof liabilities Risk beinghedged 2017 2016 2017 2016 2017 2016 Cash flow hedge accounting Interest rate exchange contracts Interest — — Foreign exchange contracts Currency — — — — Net investment hedge accounting Cross currency interest rate exchange contracts Currency — — — — No hedge accounting applied Cross currency interest rate exchange contracts Currency — — — — — Foreign exchange contracts Currency — The following table shows the periods in which the cash flows of the derivatives, to which cash flow hedge accounting applies, are expected to occur: Less than1 year 1 - 3 years 3 - 5 years More than5 years Total As of December 31, 2017 Cash flows ) ) — — ) Cash flow hedge reserve As of December 31, 2016 Cash flows ) ) — — ) Cash flow hedge reserve* ) * The balance of the Cash flow hedge reserve at December 31, 2016 amounted to approximately US$300 thousand. FAIR VALUES The fair value of financial assets and liabilities is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the balance sheet date. The fair values were estimated based on quoted market prices for our bonds, derived from market prices or by using discounted cash flows under the agreement at the rate applicable for the instruments with similar maturity and risk profile. The carrying amount of cash and cash equivalents, trade and other receivables, and trade and other payables approximate their respective fair value. The fair value of derivative financial instruments is determined using present value techniques such as discounted cash flow techniques, Monte Carlo simulation and/or the Black-Scholes model. These valuation techniques are commonly used for valuations of derivatives. Observable inputs (Level 2) used in the valuation techniques include LIBOR, EURIBOR, swap curves, basis swap spreads, foreign exchange rates and credit default spreads of both counterparties and our own entities. The fair value of Available for sale financial assets are determined through comparison of various multiples and reference to market valuation of similar entities quoted in an active market. If information is not available, a discounted cash flow method is used. Fair value measurements for financial liabilities at amortized cost are based on quoted market prices, where available. If the quoted market price is not available, the fair value measurement is based on discounted expected future cash flows using a market interest rate curve, credit spreads and maturities. SOURCE OF ESTIMATION UNCERTAINTY Fair value of financial instruments Where the fair value of financial assets and financial liabilities recorded in the statement of financial position cannot be derived from active markets, their fair value is determined using valuation techniques, including discounted cash flow models. The inputs to these models are taken from observable markets where possible, but when this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. FAIR VALUE HIERARCHY As of December 31, 2017 and 2016, the Group recognized financial instruments at fair value in the statement of financial position. The fair value hierarchy ranks fair value measurements based on the type of inputs used in the valuation; it does not depend on the type of valuation techniques used: • Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities • Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly • Level 3: inputs are unobservable inputs for the asset or liability The following table provides the disclosure of fair value measurements separately for each major class of assets and liabilities. As of December 31, 2017 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — Embedded derivatives in notes — — Financial assets at fair value Available for sale financial assets — — Total financial assets at fair value — — Financial liabilities at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — — — Contingent consideration — — Financial liabilities at fair value Derivatives designated as net investment hedges Cross currency interest rate exchange contracts — — Derivatives designated as cash flow hedges Interest rate exchange contracts — — Total financial liabilities at fair value — As of December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — Embedded derivatives in notes — — Financial assets at fair value Derivatives designated as cash flow hedges Foreign exchange contracts — — — — Available for sale financial assets — Total financial assets at fair value — Financial liabilities at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — Financial liabilities at fair value Derivatives designated as cash flow hedges Foreign exchange contracts — — Interest rate exchange contracts — — Contingent consideration — — Total financial liabilities at fair value — The reconciliation of movements relating to financial instruments classified in Level 3 of the fair value hierarchy: Financial assets Financial liabilities Available Total Contingent Total As of January 1, 2016 — — Change in fair value recognized in other comprehensive income — — Purchased / incurred — — Currency translation adjustments ) ) — — As of December 31, 2016 Change in fair value recognized in the income statement — — Change in fair value recognized in other comprehensive income ) ) — — Impairment loss ) ) — — As of December 31, 2017 — — Transfers into and out of fair value hierarchy levels are recognized at the end of the reporting period (or the date of the event or change in circumstances that caused the transfer). On a quarterly basis, the Company reviews if there are any indicators for a possible transfer between Level 2 and Level 3. This depends on how the Company is able to obtain the underlying input parameters when assessing the fair valuations. During the years ended December 31, 2017 and December 31, 2016, there were no transfers between Level 1, Level 2 and Level 3 fair value measurements. All impairment losses and changes in fair values of financial instruments are unrealized and are recorded in "Other non-operating losses" in the consolidated income statement or "Other" in the consolidated statement of comprehensive income. OFFSETTING FINANCIAL ASSETS AND LIABILITIES For financial assets and liabilities subject to netting arrangements, each agreement between the Group and the counterparty allows for net settlement of the relevant financial assets and liabilities when both elect to settle on a net basis. In the absence of such an election, financial assets and liabilities are settled on a gross basis. The major arrangements applicable for the Group are agreements with national and international interconnect operators and agreements with roaming partners. Several entities of the Group have entered into International Swaps and Derivatives Association, Inc. ( "ISDA" ) Master Agreements or equivalent documents with their counterparties, governing the derivative transactions entered into between these entities and their counterparties. These documents provide for set-off of outstanding derivative positions in the event of termination if an Event of Default of either entity or the counterparty occurs. Related amounts not Gross amounts Net amounts Gross Financial Cash Net As of December 31, 2017 Other financial assets (non-current) — — — Other financial liabilities (non-current) — — — Other financial assets (current) — — — Other financial liabilities (current) — — — Trade and other receivables — — Trade and other payables — — As of December 31, 2016 Other financial assets (non-current) — — — Other financial liabilities (non-current) — — — Other financial assets (current) — — — Other financial liabilities (current) ) — — Trade and other receivables ) — — Trade and other payables ) — —

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS	12 Months Ended
CASH AND CASH EQUIVALENTS	Dec. 31, 2017
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS	18 CASH AND CASH EQUIVALENTS Cash and cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. Cash and cash equivalents are comprised of cash at bank and on hand and highly liquid investments that are readily convertible to known amounts of cash, are subject to only an insignificant risk of changes in value and have an original maturity of less than three months. Cash and cash equivalents consisted of the following items as of December 31: 2017 2016 Cash at banks and on hand Short-term deposits with original maturity of less than three months Total cash and cash equivalents Cash at bank earns interest at floating rates based on bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates. As of December 31, 2017, there were no restricted cash and cash equivalent balances. As of December 31, 2016, cash balances in Uzbekistan and Ukraine of US$347 and US$3, respectively, were restricted due to local government or central bank regulations and were therefore unable to be repatriated. In addition, short-term and long-term deposits at financial institutions in Uzbekistan of US$372 as of December 31, 2016 were also subject to the same restrictions. Cash balances as of December 31, 2017 include investments in money market funds of US$91 (2016: US$578).

OTHER ASSETS AND LIABILITIES

OTHER ASSETS AND LIABILITIES	12 Months Ended
OTHER ASSETS AND LIABILITIES	Dec. 31, 2017
OTHER ASSETS AND LIABILITIES
OTHER ASSETS AND LIABILITIES	19 OTHER ASSETS AND LIABILITIES Other assets consisted of the following items as of December 31: 2017 2016 Other non-current assets Advances to suppliers Deferred costs related to connection fees Indemnification assets Total other non-current assets Other current assets Advances to suppliers Input value added tax Prepaid taxes Deferred costs related to connection fees Other assets Total other current assets Other liabilities consisted of the following items as of December 31: 2017 2016 Other non-current liabilities Long-term deferred revenue Provision for pensions and other post-employment benefits Other liabilities Total other non-current liabilities Other current liabilities Customer advances Short-term deferred revenue Customer deposits Other taxes payable Other payments to authorities Due to employees Other liabilities Total other current liabilities

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES	12 Months Ended
TRADE AND OTHER RECEIVABLES	Dec. 31, 2017
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES	20 TRADE AND OTHER RECEIVABLES Trade and other receivables consisted of the following items as of December 31: 2017 2016 Trade receivables, grossw Allowance for doubtful debt ) ) Trade receivables, net Other receivables Total trade and other receivables As of December 31, 2017, trade receivables with a value of US$169 (2016: US$160) were impaired. See below the movements in the allowance for doubtful debt: 2017 2016 Balance as of January 1 Acquisition of a subsidiary — Divestment of a subsidiary — ) Classified as held for sale ) — Allowance for doubtful debts Recoveries ) ) Accounts receivable written off ) ) Foreign currency translation adjustment ) Balance as of December 31 The aging of trade receivables as of December 31 is shown below: 2017 2016 Neither past due nor impaired Past due but not impaired Past due and impaired Less than 30 days past due Between 30 and 120 days past due Greater than 120 days past due Total trade receivables ACCOUNTING POLICIES Trade and other receivables are measured at amortized cost and include invoiced amounts less appropriate allowances for estimated uncollectible amounts. Estimated uncollectible amounts are calculated based on the ageing of the receivable balances, payment history and other evidence of collectability. Receivable balances are written off when management deems them not to be collectible.

INVENTORIES

INVENTORIES	12 Months Ended
INVENTORIES	Dec. 31, 2017
INVENTORIES
INVENTORIES	21 INVENTORIES Inventories consisted of the following items as of December 31: 2017 2016 Telephone handsets and accessories for sale SIM-Cards Other inventory Inventory write-downs ) ) Total inventories ACCOUNTING POLICIES Inventory is measured at the lower of cost and net-realizable value and carried at the weighted average cost basis.

PROVISIONS

PROVISIONS	12 Months Ended
PROVISIONS	Dec. 31, 2017
PROVISIONS
PROVISIONS	22 PROVISIONS The following table summarizes the movement in provisions for the years ended December 31: Income tax Indirect tax Decommissioning Legal Other Total Cost As of January 1, 2016 Acquisitions — — — Divestments — ) — — ) ) Arising during the year Utilized ) ) — ) ) ) Unused amounts reversed ) ) ) ) ) Discount rate adjustment and imputed interest (change in estimate) — — — — Translation adjustments and other ) — ) ) ) As of December 31, 2016 Current — Non-current — As of January 1, 2017 Arising during the year Reclassified to assets held for sale ) — ) — — ) Utilized ) ) ) ) ) ) Unused amounts reversed ) ) ) ) ) ) Discount rate adjustment and imputed interest (change in estimate) — — — — Translation adjustments and other ) ) — ) ) As of December 31, 2017 Non-current — — Current — At December 31, 2017, legal provisions include the provision of US$33 in connection with the investigations relating to our business in Uzbekistan (2016: US$66). This matter is further discussed below. During 2016, the Company also recorded provisions for a number of tax disputes in Pakistan and Bangladesh, including disputes relating to the supply of SIM cards, for which provisions remain at December 31, 2017. The timing of payments in respect of non-current provisions is, with few exceptions, not contractually fixed and cannot be estimated with certainty. See "Sources of estimation uncertainty" below, in this Note 22, for assumptions and sources of uncertainty. Significant tax and legal proceedings are discussed in Note 26. Given the uncertainties inherent in such proceedings, there can be no guarantee that the ultimate outcome will be in line with VEON's current view. The Group has recognized a provision for decommissioning obligations associated with future dismantling of its towers in various jurisdictions. Investigations by SEC / DOJ / OM During the first quarter of 2016, the Company reached resolutions through agreements with the U.S. Securities and Exchange Commission ( "SEC" ), the U.S. Department of Justice ( "DOJ" ), and the Dutch Public Prosecution Service (Openbaar Ministerie) ( "OM" ) relating to the previously disclosed investigations under the U.S. Foreign Corrupt Practices Act (the "FCPA") and relevant Dutch laws, pertaining to the Company's business in Uzbekistan and prior dealings with Takilant Ltd. Pursuant to these agreements, the Company paid an aggregate amount of US$795 in fines and disgorgements to the SEC, the DOJ and the OM in the first quarter of 2016. On February 18, 2016, the United States District Court for the Southern District of New York (the "District Court" ) approved the agreements with the DOJ relating to charges that the Company and its subsidiary violated the anti-bribery, books-and-records and internal controls provisions of the FCPA. These agreements consisted of the deferred prosecution agreement (the "DPA" ), entered into by VEON and the DOJ and a guilty plea by Unitel, a subsidiary of VEON operating in Uzbekistan. Under the agreements with the DOJ, VEON agreed to pay a total criminal penalty of US$230 to the United States, including US$40 in forfeiture. In connection with the investigation by the OM, VEON and Silkway Holding BV, a wholly owned subsidiary of VEON, entered into a settlement agreement (the "Dutch Settlement Agreement" ) related to anti-bribery and false books-and-records provisions of Dutch law. Pursuant to the Dutch Settlement Agreement, VEON agreed to pay criminal fines of US$230 and to disgorge a total of US$375, which was satisfied by the forfeiture to the DOJ of US$40, a disgorgement to the SEC of US$167.5 and a further payment to the OM of US$167.5 beyond the criminal fines. VEON also consented to the entry of a judgment and incorporated consent (the "SEC Judgment" ), which was approved by the District Court on February 22, 2016, relating to the SEC's complaint against VEON, which charged violations of the anti-bribery, books-and-records and internal controls provisions of the FCPA. Pursuant to the SEC Judgment, VEON agreed to a judgment ordering disgorgement of US$375, to be satisfied by the forfeiture to the DOJ of US$40, the disgorgement to the OM of US$167.5, and a payment to the SEC of US$167.5, and imposing a permanent injunction against future violations of the U.S. federal securities laws. The DPA, the guilty plea, the Dutch Settlement Agreement and the SEC Judgment comprise the terms of the resolution of the Company's potential liabilities in the previously disclosed DOJ, SEC and OM investigations regarding VEON and Unitel. All amounts to be paid under the DPA, the guilty plea, the Dutch Settlement Agreement and the SEC Judgment were paid in the first quarter of 2016 and were deducted from the already existing provision of US$900 recorded in the third quarter of 2015 and disclosed in the 2015 annual consolidated financial statements. The remaining provision of US$105 related to future direct and incremental expected legal fees associated with the resolutions. In 2016, the Company paid US$24 in legal fees utilizing this provision and changed its estimate by reducing the provision to a balance of US$66 at the end of 2016. In 2017, the Company paid US$14 in legal fees utilizing this provision and changed its estimate by reducing the provision by US$19, resulting in a remaining provision of US$33 as of December 31, 2017. The Company cannot currently estimate the magnitude of future costs to be incurred to comply with the DPA, the SEC Judgment and the Dutch Settlement Agreement, but these costs could be significant. GTH—IRAQNA Litigation On November 19, 2012, Atheer Telecom Iraq Limited ( "Atheer" ), an affiliate of the Zain Group, initiated English High Court proceedings in London against Orascom Telecom Iraq Ltd. ( "OTIL" ) (a Maltese subsidiary of GTH) and GTH in relation to a dispute arising out of the sale by OTIL of its Iraqi mobile subsidiary, Iraqna, in 2007 to Atheer. Atheer's claim is founded on the tax covenants in the underlying share purchase agreement ( "Iraqna SPA" ) between the parties. In particular, Atheer is seeking declarations from the Court that OTIL and GTH are liable to indemnify it in respect of three alleged tax liabilities: (i) a capital gains tax liability in the sum of Iraqi dinar ( "IQD" ) 219 billion (US$183), which Atheer claims is in respect of the transaction that formed the subject-matter of the Iraqna SPA; (ii) an income tax liability in the sum of IQD 96 billion (US$80) in respect of the years 2004-2007; and (iii) a withholding tax liability in the sum of IQD 7 billion (US$6). OTIL and GTH dispute these claims and are vigorously defending them. The dispute was listed for trial on July 20, 2015. As a result of delays by Atheer in providing disclosure, occasioning the parties to amend their respective statements of case, the trial was adjourned to the week commencing November 14, 2016. Atheer's amendments included withdrawing its claim for unjust enrichment in the amount of IQD 219 billion (US$183) and conceding that its contractual claims are capped at a total possible recovery of US$60. The trial was heard November 14-18, 2016. On February 17, 2017, the court found GTH liable. Following a hearing on March 1, 2017, GTH and OTIL were ordered to pay Atheer the amounts of US$60, plus approximately US$8 in accrued interest, and an interim payment of GBP 1.25 million (US$2) for legal costs pending submission of a detailed schedule of costs by Atheer. The trial court judge denied GTH's and OTIL's request for leave to appeal and did not stay enforcement pending appeal. An application for Leave to Appeal the trial decision at the Court of Appeal was filed on March 22, 2017 and remains pending. The Company provided for the Court's judgment including the related legal fees. On June 6, 2017, the English Court of Appeal denied GTH's application for leave to appeal. With no further venue for appeal, the matter is now concluded and final, with no remaining provision recorded. VAT on Replacement SIMs June 2009 to December 2011 On April 1, 2012, the National Board of Revenue ( "NBR" ) issued a demand to Banglalink for BDT 7.74 billion (US$94) for unpaid SIM tax (VAT and supplementary duty). The NBR alleged that Banglalink evaded SIM tax on new SIM cards by issuing them as replacements. On the basis of 5 random SIM card purchases made by the NBR, the NBR concluded that all SIM card replacements issued by Banglalink between June 2009 and December 2011 (7,021,834 in total) were new SIM connections and subject to tax. Similar notices were sent to three other operators in Bangladesh. Banglalink and the other operators filed separate petitions in the High Court, which stayed enforcement of the demands. In an attempt to assist the NBR in resolving the dispute, the Government ordered the NBR to form a Review Committee comprised of the NBR, the Commissioner of Taxes ( "LTU" ), Bangladesh Telecommunication Regulatory Commission ( "BTRC" ), AMTOB and the operators (including Banglalink). The Review Committee identified a methodology to determine the amount of unpaid SIM tax and, after analyzing 1,200 randomly selected SIM cards issued Banglalink, determined that only 4.83% were incorrectly registered as replacements. The Review Committee's interim report was signed off by all the parties, however, the Convenor of the Review Committee reneged on the interim report and unilaterally published a final report that was not based on the interim report or the findings of the Review Committee. The operators objected to the final report. The NBR Chairman and operators' representative agreed that the BTRC would prepare further guidelines for verification of SIM users. Although the BTRC submitted its guidelines (under which Bangalink's exposure was determined to be 8.5% of the original demand), the Convenor of the Review Committee submitted a supplementary report which disregarded the BTRC's guidelines and assessed Banglalink's liability for SIM tax to be BDT 7.62 billion (US$92). The operators refused to sign the supplementary report. On May 18, 2015, Banglalink received an updated demand from the LTU claiming Banglalink had incorrectly issued 6,887,633 SIM cards as replacement SIM cards between June 2009 and December 2011 and required Banglalink to pay BDT 5.32 billion (US$64) in SIM tax. The demand also stated that interest may be payable. Similar demands were sent to the other operators. On June 25, 2015, Banglalink filed an application to the High Court to stay the updated demand, and a stay was granted. On August 13, 2015, Banglalink filed its appeal against the demand before the Appellate Tribunal and deposited 10% of the amount demanded in order to proceed. The other operators also appealed their demands. On April 26, 2016, Banglalink presented its legal arguments and on September 28, 2016, the appeals of all the operators were heard together The Bangladesh Appellate Tribunal rejected the appeal of Banglalink and all other operators on June 22, 2017. On July 11, 2017, Banglalink filed an appeal of the Appellate Tribunal's judgment with the High Court Division of the Supreme Court of Bangladesh. July 2012 to June 2015 On November 20, 2017 the LTU issued a final demand to Banglalink for BDT 1.69 billion (US$20) for unpaid tax on SIM card replacements issued by Banglalink between July 2012 and June 2015. On February 20, 2018, Banglalink filed its appeal against this demand before the Appellate Tribunal and deposited 10% of the amount demanded in order to proceed. The operators continue to engage in discussions with the government in an attempt to resolve the dispute. As of December 31, 2017, the Company has recorded a provision of US$11 (2016: US$11). ACCOUNTING POLICIES Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are discounted using a current pre-tax rate if the time value of money is significant. SOURCE OF ESTIMATION UNCERTAINTY Provisions The Group is involved in various legal proceedings, disputes and claims, including regulatory discussions related to the Group's business, licenses, tax positions and investments, and the outcomes of these are subject to significant uncertainty. Management evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. Unanticipated events or changes in these factors may require the Group to increase or decrease the amount recorded for a matter that has not been previously recorded because it was not considered probable. For certain operations in emerging markets, the Group is involved in various regulatory discussions. Management's estimates relating to regulatory discussions in these countries involve a high level of uncertainty. See also Note 26 for further information.

ISSUED CAPITAL AND RESERVES

ISSUED CAPITAL AND RESERVES	12 Months Ended
ISSUED CAPITAL AND RESERVES	Dec. 31, 2017
ISSUED CAPITAL AND RESERVES
ISSUED CAPITAL AND RESERVES	23 ISSUED CAPITAL AND RESERVES The following table details the common shares of the Company as of December 31: 2017 2016 Authorized common shares (nominal value of US$0.001 per share) Issued shares (see Note 1) Treasury shares ) ) Outstanding shares The holders of common shares are, subject to our by-laws and Bermuda law, generally entitled to enjoy all the rights attaching to common shares. Each fully paid common share entitles its holder to: • participate in shareholder meetings; • have one vote on all issues voted upon at a shareholder meeting, except for the purposes of cumulative voting for the election of the Supervisory Board, in which case each common share shall have the same number of votes as the total number of members to be elected to the Supervisory Board and all such votes may be cast for a single candidate or may be distributed between or among two or more candidates; • receive dividends approved by the Supervisory Board; • in the event of our liquidation, receive a pro rata share of our surplus assets; and • exercise any other rights of a common shareholder set forth in our bye-laws and Bermuda law. Share options exercised in each respective year have been settled using the Treasury shares of the Company. The reduction in the Treasury shares equity component is equal to the cost incurred to acquire the shares, on a weighted average basis. Any excess between the cash received from employees and reduction in Treasury shares is recorded in capital surplus. As of December 31, 2017 and 2016, there were no remaining VEON convertible preferred shares authorized and outstanding. The preferred shares, with a nominal value of US$0.001 per share, were convertible into VEON common shares at the option of the shareholder (Telenor) any time between October 15, 2013 and April 15, 2016 at a price based on the NASDAQ price of VEON ADSs. As of April 15, 2016, pursuant to the terms of the Company's bye-laws, the 305,000,000 preferred shares held by Telenor had been redeemed by the Company at a redemption price of US$0.001 per share and are no longer outstanding. NATURE AND PURPOSE OF RESERVES Other capital reserves Other capital reserves are mainly used to record the accumulated impact of derivatives designated as cash flow hedges (Note 17) and recognize the results of transactions that do not result in a change of control with non-controlling interest (Note 5). Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. The other comprehensive loss recognized within the foreign currency reserve was driven primarily by the strengthening of the US Dollar and the depreciation of emerging markets currencies in which VEON operates, particularly the depreciation of the Uzbek som (see Note 1). In addition, a loss of US$125 was recognized within the foreign currency reserve pertaining to the hedge of net investment in foreign operations (see Note 17).

DIVIDENDS PAID AND PROPOSED

DIVIDENDS PAID AND PROPOSED	12 Months Ended
DIVIDENDS PAID AND PROPOSED	Dec. 31, 2017
DIVIDENDS PAID AND PROPOSED
DIVIDENDS PAID AND PROPOSED	24 DIVIDENDS PAID AND PROPOSED Pursuant to Bermuda law, VEON is restricted from declaring or paying a dividend if there are reasonable grounds for believing that (a) VEON is, or would after the payment be, unable to pay its liabilities as they become due, or (b) the realizable value of VEON assets would, as a result of the dividend, be less than the aggregate of VEON liabilities. In August 2017, the Supervisory Board approved the distribution of an interim gross dividend of US 11 cents per share for 2017, from the Company's freely distributable reserves, representing a total dividend payment of US$193. The dividend was paid on September 6, 2017. Subsequent to year end, the Company announced that the VEON Supervisory Board approved a final dividend for 2017, refer to Note 27 for further details. On November 2, 2016, the Supervisory Board approved and authorized the payment of an interim cash dividend relating to its 2016 results from its freely distributable reserves in the amount of US 3.5 cents per common share, representing a total dividend payment of US$61. The dividend was paid on December 7, 2016. In addition to the dividend paid on December 7, 2016 the Supervisory Board, on February 27, 2017, authorized a proposed cash dividend relating to its 2016 results from its freely distributable reserves in the amount of US 19.5 cents per common share, representing a total dividend payment of US$343. The dividend was paid on April 12, 2017. On November 6, 2015 the Company announced that the Supervisory Board authorized the payment of a dividend of US 3.5 cents per ADS. The dividend was paid on December 7, 2015. The Company made appropriate tax withholdings of up to 15% when the dividends are paid to the Company's ADS depositary, The Bank of New York Mellon. DIVIDENDS DECLARED TO NON-CONTROLLING INTERESTS During the 2017 and 2016 years, certain subsidiaries of the Company declared dividends, of which a portion was paid or payable to non-controlling interests. Name of subsidiary Dividend declared Dividend paid Paid or VIP Kazakhstan Holding AG October 6, 2017 October 10, 2017 Omnium Telecom Algeria S.p.A June 21, 2017 August 18, 2017 TNS Plus LLP May 12, 2017 May 15, 2017 VIP Kyrgyzstan Holding AG February 13, 2017 February 16, 2017 TNS Plus LLP January 24, 2017 January 25, 2017 TNS Plus LLP September 1, 2016 September 2, 2016 VIP Kazakhstan Holding AG July 28, 2016 August 2, 2016 Omnium Telecom Algeria S.p.A June 22, 2016 September 1, 2 and 6, 2016 In 2017, PMCL, a subsidiary of the Company, declared dividends to its shareholders, of which US$54 (2016: US$7) was declared to the non-controlling interest holders of PMCL. Dividends declared to non-controlling interests reduces the principal amount of the put-option liability over non-controlling interest on the date of declaration. As of balance sheet date, an amount of US$26 (2016: US$7) remained payable to non-controlling interests.

RELATED PARTIES

RELATED PARTIES	12 Months Ended
RELATED PARTIES	Dec. 31, 2017
RELATED PARTIES
RELATED PARTIES	25 RELATED PARTIES The following table provides the total amount of transactions that have been entered into with related parties and their affiliates for the years ended December 31: 2017 2016 2015 Revenue from related parties LetterOne — — Telenor Discontinued operations — Joint ventures and associates Other related parties — — Finance income from related parties — — Services from related parties LetterOne Telenor Discontinued operations — Joint ventures and associates Other related parties — — Finance costs to related parties — — The following table provides the total balance of accounts with related parties and their affiliates at the end of the relevant period: 2017 2016 Accounts receivable from related parties Telenor — Joint ventures and associates Other assets due from related parties Accounts payable to related parties LetterOne — Telenor — Joint ventures and associates As of December 31, 2017, the Company has no ultimate controlling shareholder. See also Note 1 for details regarding ownership structure. RELATED PARTY TRANSACTIONS WITH TELENOR AND ITS AFFILIATES A number of our operating companies have roaming agreements with Telenor and its affiliates. As a result of changes to the composition of the Supervisory Board, announced on December 8, 2017, Telenor is no longer represented on VEON's Supervisory Board, and as such, Telenor and its affiliates are no longer considered to be a related party. RELATED PARTY TRANSACTIONS WITH LETTERONE AND ITS AFFILIATES VEON was a party to a General Services Agreement with LetterOne Corporate Advisor Limited, dated December 1, 2010, under which LetterOne Corporate Advisor Limited renders to VEON and its affiliates services related to telecommunication operations. The General Services Agreement and Consultancy Deed were originally entered into by VEON and Altimo Management Services Ltd., but the latter was replaced first by LIHS Corporate Advisor Limited pursuant to a Deed of Novation and Amendment dated January 14, 2016. On December 12, 2017 VEON received a notice confirming termination of the agreement. RELATED PARTY TRANSACTIONS WITH JOINT VENTURES AND ASSOCIATES Italy Joint Venture VEON has commercial contracts with its joint venture in Italy, largely relating to roaming and interconnect which are transacted at arm's length and presented in the table above. In 2017, the Group recognized US$26 (2016: nil) of service revenue and US$1 (2016: nil) of service costs relating to these commercial contracts. Euroset PJSC VimpelCom has commercial contracts with Euroset. In 2017, PJSC VimpelCom recognized US$3 (2016: US$4, 2015: US$5) of revenue from Euroset primarily for mobile and fixed line services and from the sale of equipment and accessories. PJSC VimpelCom accrued to Euroset certain expenses totaling US$28 in 2017 (2016: US$19, 2015: US$20), primarily dealer commissions and bonuses for services for acquisition of new customers, customer care and receipt of customers' payments. RELATED PARTY BALANCES AND TRANSACTIONS WITH DISCONTINUED OPERATIONS Following the reclassification of the operations in Italy as an asset held for sale and discontinued operation, the intercompany positions between the continued and discontinued portions of the Group were treated as Related Party mainly representing regular business activities, i.e. roaming and interconnect. COMPENSATION OF KEY MANAGEMENT PERSONNEL OF THE COMPANY Under the Company's bye-laws, the Supervisory Board of the Company established a Compensation Committee, which has the overall responsibility for approving and evaluating the compensation and benefit plans, policies and programs of the Company's directors, officers and employees and for supervising the administration of the Company's equity incentive plans and other compensation and incentive programs. The Compensation Committee's rules and competences are set forth in the Company's Compensation Committee Charter, which forms part of the Company's bye-laws adopted on April 20, 2010, as amended and restated on September 2, 2013. The Compensation Committee adheres to the following objectives in setting out compensation policies for the group: 1. To incentivize and reward individual and collective performance in a balanced and fair manner throughout the group; 2. To set and communicate clear targets based on the group's strategic priorities; and 3. To unify and standardize the rules for incentives across the group's headquarters in Amsterdam and its offices in London, Regional headquarters and Operational Companies (the "OpCo's" ). The aim of the group's compensation and benefit policies and incentive plans is to stimulate and reward leadership efforts that result in sustainable success, improve our local and global performance, build increased trust and sponsorship and support long-term value creation. The group's compensation includes base salary, as well as short and long-term incentive schemes. To ensure the overall competitiveness of the Company's and the group's pay levels, these levels are benchmarked against a peer group which consists of companies that are comparable in terms of size and scope, as listed on the NASDAQ stock exchange. The Compensation Committee regularly reviews the peer group to ensure that its composition is still appropriate. The composition of the peer group might be adjusted as a result of mergers or other corporate activities. The relative size of the Company and the group it belongs to is taken into account when determining whether the pay levels within the group are in line with the market-median levels. Each year, the Compensation Committee conducts a scenario analysis, which includes the calculation and composition of the remuneration under different scenarios. The Compensation Committee concluded that the current policy has proven to function well in terms of a relationship between the strategic objectives and the chosen performance criteria and believes that the short and long-term incentive plans support this relationship. Key Management Personnel ( "KMPs" ) include members of the Supervisory Board and the Management Board of the Company. The following table sets forth the total compensation paid to KMPs: 2017 2016* 2015* Short-term employee benefits Long-term employee benefits — — Share-based payments — Termination benefits Total compensation paid to key management personnel * Comparative amounts in respect of 'Long-term employee benefits' have been revised to conform to current period disclosure. Amounts shown for 'Long-term employee benefits' include amounts paid under the LTI Plan (see below) in respect of performance during previous years. Amounts disclosed in previous years for 'Long-term employee benefits' represented total nominal values of the grants covering multiple years. Members of our Supervisory Board and Management Board are eligible to participate in cash-based long-term incentive plans discussed below. Compensation of Key Management Board Members The following table sets forth the total compensation paid to the key management board members in 2017 and 2016 (gross amounts in whole euros and whole US$ equivalents): Jean-Yves Charlier Andrew Davies Group Trond Westlie Scott Dresser Group EUR US$ EUR US$ EUR US$ EUR US$ 2017 Short-term employee benefits Base salary (i) Annual incentive (ii) — — Other Long-term employee benefits — — — — — — — — Share-based payments — — — — — — Termination benefits — — — — — — Total gross remuneration 2016 Short-term employee benefits Base salary (i) — — Annual incentive (ii) — — Other — — — — Long-term employee benefits — — — — — — — — Share-based payments — — — — — — — — Termination benefits — — — — — — — — Total gross remuneration — — (i) Base salary includes holiday and/or pension allowances pursuant to the terms of an individual's employment agreement. (ii) Annual Incentive includes amounts paid under the STI Scheme (see below) in respect of performance during the previous year, except for amounts shown for Andrew Davies during 2017, which also includes amounts paid under the STI Scheme in respect of performance during the current year. (iii) Andrew Davies stepped down from the role of Group CFO, and Trond Westlie commenced duties as newly appointed Group CFO on November 9, 2017. Compensation of Supervisory Board Members The following table sets forth the total compensation paid to the key management board members in 2017 and 2016 (gross amounts in whole euros and whole US$ equivalents): Retainer Committees Other compensation Total 2017 2016 2017 2016 2017 2016 2017 2016 Alexey M. Reznikovich In whole euros — — — — US$ equivalent — — — — Stan Chudnovsky In whole euros — — — — US$ equivalent — — — — Mikhail Fridman In whole euros — — — — US$ equivalent — — — — Gennady Gazin In whole euros US$ equivalent Andrei Gusev In whole euros — — — — US$ equivalent — — — — Gunnar Holt In whole euros — — — US$ equivalent — — — Sir Julian Horn-Smith In whole euros — — US$ equivalent — — Jørn P. Jensen In whole euros — — US$ equivalent — — Ursula Burns In whole euros — — — — US$ equivalent — — — — Guy Laurence In whole euros — — — — US$ equivalent — — — — Nils Katla In whole euros — — — — US$ equivalent — — — — Morten Karlsen Sørby In whole euros — — — — — US$ equivalent — — — — — Trond Ø Westlie In whole euros — — — — — US$ equivalent — — — — — Total (in whole euros) Total (US$ equivalent) Value growth cash-based long-term incentive plans To stimulate and reward leadership efforts that result in sustainable success, the Value-Growth Cash Based Long-Term Incentive Plan (the "LTI Plan" ) has been designed for members of our recognized leadership community. The participants in the LTI Plan may receive cash payouts after the end of each relevant award performance period. The vesting of each award is subject to continued employment (except in limited "good leaver" circumstances) of a specific Qualifying Period). For participants joining after the start, or leaving before the end of a Qualifying Period, vested awards will be subject to pro-rata reduction in accordance with the actual period of employment during this Qualifying Period. Awards may vest early upon the occurrence of certain corporate events relating to VEON Ltd., subject to the Committee's determination of the attainment of Key Performance Indicators ( "KPIs" ) at the time of the relevant event and a potential pro-rata reduction to reflect the early vesting. The Company furthermore considers from time to time new long-term incentive plans, which may result in additional payouts not described above. The awards launched under the LTI Plan are detailed below. As of December 31, 2017, the total target amount (all unvested) granted for awards launched under the LTI Plan was equal to US$127 (2016: US$22). The carrying value of obligations under the LTI Plan as of December 31, 2017, was equal to US$58 (2016: US$3). Included within 'Selling, general and administrative expenses' for 2017 is an amount of US$55 (2016: US$3) relating to share-based payment expense under the LTI Plan. 2014 tranche In January 2015, a new award was launched for senior management under the LTI Plan ( "2014 tranche" ), the vesting of which is subject to the attainment of KPIs over a three and a half year (42 months) performance period (January 1, 2014 to June 30, 2017). The maximum target amount that may be earned under the 2014 tranche is determined at the time of the grant, and the vesting of the award was subject to the Committee's determination of the attainment of set KPIs after the relevant performance period (in the third quarter of 2017). For our OpCo's, the award was initially subject to the attainment of KPIs, generally with an equal or comparable weight, subject to individual discrepancies, that were business and strategy related, such as EBITDA market share and revenue market share and the Total Shareholder Return ( "TSR" ) evolution of the Company compared to peer companies in the markets in which we operate. For HQ employees, the amount of the award was based solely on TSR evolution compared to selected peer companies. In the course of 2016, the plan was modified in such way that for our OpCo's, the amount of the award also entirely depended on TSR. 2015 tranche In March 2016, the 2015 tranche was granted to senior management, the vesting of which is subject to the attainment of KPIs over a three and a half year (42 months) performance period (January 1, 2015 to June 30, 2018). The KPIs are principally based on the TSR evolution compared to peer companies in the markets in which we operate. The Committee regularly reviews the peer group to ensure that its composition is still appropriate. 2016 tranche In October 2017, the 2016 tranche was granted to senior management, the vesting of which is subject to the attainment of KPIs over a three and a half year (42 months) performance period (January 1, 2016 to June 30, 2019). The KPIs are principally based on the TSR evolution compared to peer companies in the markets in which we operate. The Committee regularly reviews the peer group to ensure that its composition is still appropriate. 2017 tranche In October 2017, the 2017 tranche was granted to senior management, the vesting of which is subject to the attainment of KPIs over a three and a half year (42 months) performance period (January 1, 2016 to June 30, 2020). The KPIs for the 2017 tranche are based on an absolute share price performance target, in order to create a direct link between management focus and real return to shareholders. Transformation Bonus Plan In August 2017, the Company introduced a Transformation Bonus Plan, which is designed to incentivize sustainable transformation and absolute shareholder value creation. The Transformation Bonus Plan is a one-time award, offered to senior management that are key to driving VEON's performance transformation program, with a performance period running from January 1, 2016 to December 31, 2018. The target payment aims at 400% of a participant's annual gross base salary, partially in cash and partially in shares of VEON, based on the achievement of established KPIs, vesting on December 31, 2018. The KPIs are based on the performance of VEON, comprising a Free Cash Flow target and a target volume-weighted average share price of VEON. The KPIs and payout structure will aid the VEON Group to fundamentally transform its business and evolve into a technology company. Director cash-based long-term incentive plan In December 2014, our Supervisory Board approved a cash based Long Term Incentive Plan for our unaffiliated directors (the "Director LTI Plan" ). Under the Director LTI Plan, awards are granted annually, covering a three-year performance period (January 1, 2014 to December 31, 2016 for the first awards, with an additional performance measurement over the first six months of 2017 and, January 1, 2015 to June 30, 2018 for the second awards). The actual amount that may be earned under an award is determined on the basis of the annual retainer of the unaffiliated director and the actual payout to headquarters participants in the corresponding tranches of the Cash Based Long Term Incentive Plan (discussed above). For participants leaving before the end, or joining after the start, of a performance period, vested awards will be subject to pro-rata reduction, provided that the participant has served as an unaffiliated director for at least 12 months during the performance period. Awards may vest early upon the occurrence of certain corporate events relating to VEON Ltd., subject to the compensation committee's determination of the attainment of KPIs at the time of the relevant event and a potential pro-rata reduction to reflect the early vesting. Short Term Incentive Plan The Company's Short Term Incentive Scheme (the "STI Scheme" ) provides cash pay-outs to participating employees based on the achievement of established KPIs over the period of one calendar year. KPIs are set every year at the beginning of the year and evaluated in the first quarter of the next year. The KPIs are partially based on the financial and operational results (such as EBITDA and total operating revenue) of the Company, or the affiliated entity employing the employee, and partially based on individual targets that are agreed upon with the participant at the start of the performance period based on his or her specific role and activities. The weight of each KPI is decided on an individual basis. Pay-out of the STI award is scheduled in March of the year following the assessment year and is subject to continued active employment during the year of assessment (except in limited "good leaver" circumstances in which case there is a pro-rata reduction) and is also subject to a pro-rata reduction if the participant commenced employment after the start of the year of assessment. Executive Investment Plan Executives of the Company may also be invited to participate in the Company's Executive Investment Plan (the "Executive Investment Plan" ), which provides for payment of a matching investment subject to satisfaction of KPIs determined by the Committee. Currently, there are no such plans active and the last plan expired in 2016 without matching investments being due.

RISKS, COMMITMENTS, CONTINGENCI

RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES	12 Months Ended
RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES	Dec. 31, 2017
RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES
RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES	26 RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES KEY RISKS Change in law and compliance risks In the ordinary course of business, VEON may be party to various legal and tax proceedings, including as it relates to compliance with the rules of the telecom regulators in the countries in which VEON operates, competition law and anti-bribery and corruption laws, including the U.S. Foreign Corrupt Practices Act ( "FCPA" ). Non-compliance with such rules and laws may cause VEON to be subject to claims, some of which may relate to the developing markets and evolving fiscal and regulatory environments in which VEON operates. In the opinion of management, VEON's liability, if any, in all pending litigation, other legal proceeding or other matters, other than what is discussed in this Note, will not have a material effect upon the financial condition, results of operations or liquidity of VEON. Tax risks The tax legislation in the markets in which VEON operates is unpredictable and gives rise to significant uncertainties, which could complicate our tax planning and business decisions. Tax laws in many of the emerging markets in which we operate have been in force for a relatively short period of time as compared to tax laws in more developed market economies. Tax authorities in our markets are often somewhat less advanced in their interpretation of tax laws, as well as in their enforcement and tax collection methods. Any sudden and unforeseen amendments of tax laws or changes in the tax authorities' interpretations of the respective tax laws and/or double tax treaties, could have a material adverse effect on our future results of operations, cash flows or the amounts of dividends available for distribution to shareholders in a particular period (e.g. introduction of transfer pricing rules, Controlled Foreign Operation ( "CFC" ) legislation and more strict tax residency rules). Management believes that VEON has paid or accrued all taxes that are applicable. Where uncertainty exists, VEON has accrued tax liabilities based on management's best estimate. From time to time, we may also identify tax contingencies for which we have not recorded an accrual. Such unaccrued tax contingencies could materialize and require us to pay additional amounts of tax. Currency control risks The imposition of currency exchange controls or other similar restrictions on currency convertibility in the countries in which VEON operates could limit VEON's ability to convert local currencies or repatriate local cash in a timely manner or at all, as well as remit dividends from the respective countries. Any such restrictions could have a material adverse effect on VEON's business, financial condition and results of operations. The continued success and stability of the economies of these countries will be significantly impacted by their respective governments' continued actions with regard to supervisory, legal and economic reforms. Refer to Note 18 for further information regarding restricted cash. COMMITMENTS Capital commitments Capital commitments for the future purchase of equipment and intangible assets are as follows as of December 31: 2017 2016 Property and equipment Less than 1 year Between 1 and 5 years Intangible assets Less than 1 year Between 1 and 5 years Total commitments Telecom license capital commitments VEON's ability to generate revenue in the countries it operates is dependent upon the operation of the wireless telecommunications networks authorized under its various licenses under GSM-900/1800 and "3G" (UMTS / WCDMA) mobile radiotelephony communications services and "4G" (LTE). Under the license agreements, operating companies are subject to certain commitments, such as territory or population coverage, level of capital expenditures, and number of base stations to be fulfilled within a certain timeframe. If we are found to be involved in practices that do not comply with applicable laws or regulations, we may be exposed to significant fines, the risk of prosecution or the suspension or loss of our licenses, frequency allocations, authorizations or various permissions, any of which could harm our business, financial condition, results of operations, or cash flows. After expiration of the license, our operating companies might be subject to additional payments for renewals, as well as new license capital and other commitments. In July 2012, PJSC VimpelCom was awarded a mobile license, a data transmission license, a voice transmission license and a telematic license for the provision of LTE services in Russia. The roll-out of the LTE network will occur through a phased approach based on a pre-defined schedule pursuant to the requirements of the license. The LTE services were launched in the middle of 2013 and offered in six regions in Russia by the end of the year. The services must be extended to a specific number of additional regions each year through to December 1, 2019 by when services must cover all of Russia. PJSC VimpelCom is required to comply with the following conditions among others under the terms of the license: (i) invest at least RUB 15 billion (US$260) in each calendar year, for which the Company continues to comply with to date in the construction of its federal LTE network until the network is completed, which must occur before December 1, 2019; (ii) provide certain data transmission services in all secondary and higher educational institutions in specified areas with population over 50 thousand; and (iii) provide interconnection capability to telecommunications operators that provide mobile services using virtual networks in any five regions in Russia not later than July 25, 2016. The latter requirement was fulfilled by PJSC VimpelCom within the required time. Operating lease commitments Operating lease commitments are as follows as of December 31: 2017 2016 Less than 1 year Between 1 and 5 years More than 5 years Total commitments Operating lease commitments mainly relate to the lease of base station sites and office spaces. Operating leases can be renewed but may be subject to renegotiations with lessors. CONTINGENT LIABILITIES VEON—Securities Class Action On November 4, 2015, a class action lawsuit was filed in the United States against VEON and certain of its current and former officers by Charles Kux-Kardos, on behalf of himself and other investors in the Company alleging certain violations of the United States federal securities laws in connection with the Company's public disclosures relating to its operations in Uzbekistan. On December 4, 2015, a second complaint was filed by Westway Alliance Corp. that asserts essentially the same claims in connection with essentially the same disclosures. On April 27, 2016, the court consolidated the two actions and appointed Westway as lead plaintiff. On May 6, 2016, a motion for reconsideration was filed on the appointment of Westway as lead plaintiff and on September 26, 2016, the court affirmed the selection of Westway as the lead plaintiff. An amended complaint was filed on December 9, 2016. Briefing on VEON's motion to dismiss the amended complaint was completed by May 2017. On September 19, 2017, the Court in the Southern District of New York rendered a decision granting in part VEON's motion to dismiss the Amended Complaint. On February 9, 2018, VEON filed its Answer and Affirmative Defenses to the allegations that remain in the Amended Complaint after the Court's September 19, 2017 Order. Motions to dismiss have been or will be filed by all the Individual Defendants by March 12, 2018. Plaintiff Westway has until April 13, 2018 to file any response(s) to the motions to dismiss. Reply briefing by the Individual Defendants are due to be filed by May 14, 2018. No date has been set for any hearing on the pending motions. The Company and the Individual Defendants intend to vigorously defend the action at all phases moving forward. GTH—License Fees Tax Litigation The Egyptian Tax Authority ( "ETA" ) conducted a review of GTH's tax filings for the years 2000-2004. Following the review, in May 2010, the Internal Committee of the ETA assessed additional tax liabilities in the amount of approximately Egyptian pound ( "EGP" ) 2 billion (US$113) against GTH for these years. The basis for the assessment was that, according to the ETA, GTH's investments in Algeria, Syria, Iraq, Tunisia and Sub-Saharan Africa during these years were actually license fees paid to foreign governments for which Egyptian withholding tax was due according to Egyptian tax laws. GTH challenged the Internal Committee's ETA's assessment before the Appellate Committee of the ETA. On May 14, 2012, the Appellate Committee cancelled the Internal Committee's assessment of EGP 2 billion (US$113) in part and reduced the assessed amount to EGP 323 million (US$18). GTH agreed to pay the assessed amount of EGP 323 million (US$18) in instalments on a without prejudice basis, which it has satisfied, and also appealed the Appellate Committee's decision to the North Cairo Court of First Instance. The ETA also challenged the Appellate Committee's decision and is seeking to reinstitute its original assessment of EGP 2 billion (US$113) plus late payment interest. The proceedings remain ongoing before the court. Separately, on January 18, 2016, GTH, through its tax advisors, received a demand from the ETA claiming an amount of EGP 429 million (US$24) in late payment interest on the Appellate Committee's assessment of EGP 323 million (US$18). The demand threatened administrative seizure of GTH's assets in the event of non-payment. On February 17, 2016, GTH filed an appeal in the Administrative Court to challenge the demand and intends to vigorously defend itself. On February 24, 2016, GTH received an updated demand from the ETA, which GTH objected to on March 24, 2016. On May 3, 2016, the ETA resent the same demand, which GTH again objected to on May 7, 2016. On December 28, 2017, GTH was notified that administrative seizure orders had been issued against various banks used by GTH in Egypt. On January 14, 2018, GTH registered a contestation of the enforcement which suspended the operability of the seizure orders until the matter can be heard by the court. GTH—Iraqi Profits and Dividends Tax Litigation 2005 Tax Year In March 2011, the ETA conducted an audit of GTH's tax filings for the year 2005. Following its review, the ETA concluded that income derived by OTIL from Iraqna ("OTIL-Iraqna Income" ) for that year should be included in GTH's tax return and taxed at 20%, and accordingly claimed additional corporate income tax of EGP 235 million (US$13). GTH challenged the ETA's claim before the Internal Committee of the ETA arguing that the OTIL-Iraqna Income should be fully exempt from Egyptian corporate income tax pursuant to the Iraq-Egypt double taxation treaty. On October 2, 2011, the Internal Committee ruled that the OTIL-Iraqna Income should be taxed at 20% in the amount of EGP 235 million (US$13) but that credit should be given for taxes paid by OTIL in Iraq. GTH's appeal to the Appellate Committee of the ETA was dismissed on August 1, 2015. On November 11, 2015, GTH appealed the Appellate Committee's decision to the Administrative Court where proceedings are ongoing. Separately, on January 18, 2016, GTH, through its tax advisors, received a demand from the ETA claiming an amount of EGP 235 million (US$13) assessed by the Appellate Committee together with late payment interest of EGP 258 million (US$15). The demand threatened administrative seizure of GTH's assets in the event of non-payment. On February 17, 2016, GTH filed an appeal in the Administrative Court to challenge the demand and intends to vigorously defend itself. On February 24, 2016, GTH received an updated demand from the ETA claiming EGP 505 million (EGP 235 million principal plus EGP 270 million interest), which GTH objected to on March 24, 2016. On May 3, 2016, the ETA sent a new demand, which GTH objected to on May 7, 2016. On December 28, 2017, GTH was notified that administrative seizure orders had been issued against various banks used by GTH in Egypt. On January 14, 2018, GTH registered a contestation of the enforcement which suspended the operability of the seizure orders until the matter can be heard by the court. 2007 Tax Year In addition, during the audit conducted by the ETA in 2011 in respect GTH's tax filings for the year 2007, the ETA concluded that GTH owed additional corporate income tax of EGP 282 million (US$16) in respect of dividends distributed by Iraqna to OTIL in 2007. After GTH disputed the claim on the basis of the Iraq-Egypt double taxation treaty, the ETA referred the dispute to the Internal Committee, who upheld the ETA's position. GTH appealed the Internal Committee's decision to the Appeal Committee, where proceedings are ongoing. GTH—tax assessments on a deemed basis The Company has received assessments on deemed basis in respect of tax years 2012/2013 and 2014/2015. The Company has objected to these assessments, however the actual tax inspection for tax years 2012/2013 is ongoing and has not yet been concluded. An actual tax inspection for 2014/2015 is expected to start after the inspection for 2012/2013 is finalized. Canadian action brought by the Catalyst Capital group Inc. VEON is a defendant in an action brought in 2016 by The Catalyst Capital Group Inc. ( "Catalyst" ) for CAD 1.3 billion (US$1,034) alleging breach of contract in the Superior Court of Justice in Ontario, Canada. In 2014, Catalyst and the company entered into an exclusivity agreement in connection with negotiations for the sale of the company's WIND Mobile business. Catalyst alleges that the company and its financial advisor, UBS Securities Canada Inc., breached their exclusivity agreement obligations, which in turn enabled the sale of WIND Mobile to a consortium of other investors, who are also named co-defendants. The company filed a Statement of Defense denying all allegations and intends to vigorously contest the matter. VEON's motion to dismiss the claim (as well as motions of all other defendants) was heard August 16-18, 2017. A decision from the Court on the motion to dismiss is not expected before Q2 2018. Other contingencies and uncertainties In addition to the individual matters mentioned above, the Company is involved in other disputes, litigation and regulatory inquiries and investigations, both pending and threatened, in the ordinary course of its business. The total value of all other individual contingencies above US$5 other than disclosed above amounts to US$107 (2016: US$29). The Company does not expect any liability arising from these contingencies to have a material effect on the results of operations, liquidity, capital resources or financial position of the Company. Furthermore, the Company believes it has provided for all probable liabilities arising in the ordinary course of its business. For the ongoing matters described above, where the Company has concluded that the potential loss arising from a negative outcome in the matter cannot be estimated, the Company has not recorded an accrual for the potential loss. However, in the event a loss is incurred, it may have an adverse effect on the results of operations, liquidity, capital resources, or financial position of the Company.

EVENTS AFTER THE REPORTING PERI

EVENTS AFTER THE REPORTING PERIOD	12 Months Ended
EVENTS AFTER THE REPORTING PERIOD	Dec. 31, 2017
EVENTS AFTER THE REPORTING PERIOD
EVENTS AFTER THE REPORTING PERIOD	27 EVENTS AFTER THE REPORTING PERIOD Acquisition of spectrum in Ukraine On January 31, 2018, the Company announced that its wholly-owned subsidiary in Ukraine, Kyivstar, secured one of three licenses to provide nationwide 4G/LTE services, subject to final regulatory approvals. Kyivstar will pay UAH 0.9 billion (US$32) for 2x15 MHz of contiguous frequency in the 2600 MHz band. In addition, on March 6, 2018, the Company announced that Kyivstar acquired the following spectrum in the 1800MHz band suitable for 4G/LTE: • 25MHz (paired) at UAH 1.325 billion (US$47); and • two lots of 5MHz (paired) at UAH 1.512 billion (US$54). Acquisition of additional spectrum and 4G/LTE License in Bangladesh On February 13, 2018, the Company announced that its wholly-owned subsidiary in Bangladesh, Banglalink, has been awarded technology neutral spectrum in the 1800 and 2100 MHz bands. Banglalink will pay a total of US$308.6 for the spectrum excluding VAT. An upfront payment of 60% for the spectrum will be payable in approximately 30 days with the remaining 40% payable over four years. In addition, Banglalink will pay US$35 to convert its existing spectrum holding in 900MHz and 1800MHz into technology neutral spectrum and US$1.2 to acquire the 4G/LTE license. The investment will be funded through locally available cash and by the BDT-denominated facility signed by Banglalink in December 2017, refer to Note 4 for further details. Final 2017 Dividend of US 17 cents per share approved by Supervisory Board On February 22, 2018, the Company announced that the VEON Supervisory Board approved a final dividend of US 17 cents per share, bringing total 2017 dividend to US 28 cents per share. The record date for the Company's shareholders entitled to receive the final dividend payment was set for March 5, 2018 and the final dividend was paid on March 13, 2018. The Company made appropriate tax withholdings of up to 15% when the dividend was paid to the Company's share depositary, The Bank of New York Mellon. For ordinary shareholders at Euronext Amsterdam, the final dividend of US 17 cents was paid in euro. Federal Antimonopoly Service in Russia All commercial policies, including roaming prices, are subject to antitrust monitoring and control on an ongoing basis. On July 14, 2017, the Federal Antimonopoly Service in Russia ( "FAS" ) issued an injunction requiring all telecom operators to abolish "intra-network roaming" surcharges. The surcharges are applied by operators to subscribers making and receiving calls when travelling outside of their home regions. On March 12, 2018, the FAS opened an investigation into the intra-network roaming tariffs applied by PJSC VimpelCom. PJSC VimpelCom is currently engaged in discussions with the FAS regarding compliance with its injunction. Amsterdam, March 15, 2018 VEON Ltd.

SIGNIFICANT ACCOUNTING POLICI37

SIGNIFICANT ACCOUNTING POLICIES THAT RELATE TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE (Policies)	12 Months Ended
	Dec. 31, 2017
SIGNIFICANT ACCOUNTING POLICIES THAT RELATE TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE
Basis of Preparation	BASIS OF PREPARATION These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( "IFRS" ) as issued by the International Accounting Standards Board, effective at the time of preparing the consolidated financial statements and applied by VEON. The consolidated income statement has been presented based on the nature of the expense, other than 'Selling, general and administrative expenses', which has been presented based on the function of the expense. The consolidated financial statements have been prepared on a historical cost basis, unless disclosed otherwise. Certain comparative amounts have been reclassified to conform to the current period presentation.
Basis of Consolidation	BASIS OF CONSOLIDATION The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Subsidiaries are all entities (including structured entities) over which the Company has control. Please refer to Note 13 for a list of significant subsidiaries. Intercompany transactions, balances and unrealized gains or losses on transactions between Group companies are eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies. When the Group ceases to consolidate a subsidiary due to loss of control, the related subsidiary's assets (including goodwill), liabilities, non-controlling interest and other components of equity are de-recognized. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. Any consideration received is recognized at fair value, and any investment retained is re-measured to its fair value, and this fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest. Any resultant gain or loss is recognized in the income statement.
Foreign Currency Translation	FOREIGN CURRENCY TRANSLATION The consolidated financial statements of the Group are presented in U.S. dollars. Each entity in the Group determines its own functional currency and amounts included in the financial statements of each entity are measured using that functional currency. Upon consolidation, the assets and liabilities measured in the functional currency are translated into U.S. dollars at exchange rates prevailing on the balance sheet date; whereas revenue, expenses, gains and losses are translated into U.S. dollars at historical exchange rates prevailing on the transaction dates. Translation adjustments resulting from the process of translating financial statements into U.S. dollars are reported in other comprehensive income, a separate component of equity (i.e. cumulative translation adjustment).
New Standards, Interpretations, and Amendments Not Yet Adopted By the Group	NEW STANDARDS, INTERPRETATIONS AND AMENDMENTS NOT YET ADOPTED BY THE GROUP The following section outlines significant and relevant new standards that are issued, but not yet effective, up to the date of the issuance of the Group's financial statements, and which have not been early adopted by the Company. New accounting standards in 2018 The following table presents the transitional impact that adoption of IFRS 9, ' Financial Instruments ' ( "IFRS 9 ") and IFRS 15, 'Revenue from contracts with customers' ( "IFRS 15" ) is expected to have on the opening balance sheet of the Group, as of January 1, 2018. Further details regarding the impact of IFRS 9 and IFRS 15 can be found below. Impact of IFRS 9 Impact of Opening Classification Impairment Revenue and Adjusted opening Assets Non-current assets Investments in joint ventures and associates ) ) Deferred tax assets — ) Other financial assets Available for sale ) — — — Fair value through other comprehensive income — — — Other assets — — Current assets Trade and other receivables — ) — Other financial assets Available for sale ) — — — Fair value through other comprehensive income — — — Other assets — — ) Equity Equity attributable to equity owners of the parent ) ) Non-controlling interests ) — ) ) Liabilities Other liabilities (current) — — ) Deferred tax liabilities — ) IFRS 15 'Revenue from contracts with customers' IFRS 15 replaces IAS 18 'Revenue' and IAS 11 'Construction contracts' and related interpretations. IFRS 15 addresses revenue recognition for contracts with customers as well as treatment of incremental costs incurred to obtain a contract with a customer, described in more detail below. Revenue recognition Due to the nature of the Group's existing product offerings (i.e. prevailing pre-paid service offerings), as well as the Group's existing accounting policies (described in Note 8), the impact of IFRS 15 on revenue recognition by the Group will be immaterial, as shown in the table presented earlier in this Note. Costs of obtaining a contract with customer Under IFRS 15, certain incremental costs incurred in acquiring a contract with a customer ( "contract costs" ), which previously did not qualify for recognition as an asset under any of the other accounting standards, will be deferred in the consolidated statement of financial position. Such costs relate primarily to commissions paid to third-party dealers and will be amortized as revenue is recognized under the related contract, within the 'Selling, general and administrative expenses' line item within the income statement. The Group will apply the practical expedient available in IFRS 15 for contract costs for which the amortization would have been shorter than 12 months. Such costs relate primarily to commissions paid to third-party dealers upon top-up of prepaid credit by customers and sale of top-up cards. The expected impact of capitalizing contract costs upon implementation of IFRS 15 is shown in the table presented earlier in this Note. Transition The standard is effective for annual periods beginning on or after January 1, 2018. The Group will adopt the standard using the modified retrospective approach, which means that the cumulative impact of the adoption will be recognized in retained earnings as of January 1, 2018 and that comparatives will not be restated. The impact that adoption of IFRS 15 is expected to have on the opening balance sheet of the Group, as of January 1, 2018, is shown in the table presented earlier in this Note. IFRS 9 'Financial instruments' IFRS 9 replaces IAS 39 ' Financial instruments: Recognition and Measurement ' (" IAS 39 "). IFRS 9 impacts the Group's classification and measurement of financial instruments, impairment of financial assets and hedge accounting, described in more detail below. Classification and measurement The new standard requires the Company to assess the classification of financial assets on its balance sheets in accordance with the cash flow characteristics of the financial assets and the relevant business model that the Company has for a specific class of financial assets. IFRS 9 no longer has an "Available-for-sale" classification for financial assets. The new standard has different requirements for debt or equity financial assets. Debt instruments should be classified and measured either at: • Amortized cost, where the effective interest rate method will apply; • Fair value through other comprehensive income, with subsequent recycling to the income statement upon disposal of the financial asset; or • Fair value through profit or loss. Investments in equity instruments, other than those to which consolidation or equity accounting apply, should be classified and measured either at: • Fair value through other comprehensive income, with no subsequent recycling to the income statement upon disposal of the financial asset; or • Fair value through profit or loss. The company will continue to initially measure financial assets at its fair value plus transaction cost upon initial recognition, except for financial assets measured at fair value through profit and loss, consistent with current practices. The majority of the financial assets classification will not be impacted by the transition to IFRS 9 on January 1, 2018. The reclassifications upon transition to IFRS 9 are shown in the table presented earlier in this Note. Impairment (allowance for doubtful debt) IFRS 9 introduces the Expected Credit Loss model, which replaces the incurred loss model of IAS 39 whereby an allowance for doubtful debt was required only in circumstances where a loss event has occurred. By contrast, the Expected Credit Loss model requires the Company to recognize an allowance for doubtful debt on all financial assets carried at amortized cost (including, for example, 'Trade receivables'), as well as debt instruments classified as financial assets carried at fair value through other comprehensive income (for example, government bonds held for liquidity purposes), since initial recognition, irrespective whether a loss event has occurred. As a result, the allowance for doubtful debt of the Company will increase upon implementation of IFRS 9 on January 1, 2018. The expected impact of applying the Expected Credit Loss model is shown in the table presented earlier in this Note. Hedge Accounting IFRS 9 allows for more possibilities for the Company to apply hedge accounting (for example, risk components of non-financial assets or liabilities may be designated as part of a hedging relationship). In addition, the requirements of the standard have been more closely aligned with the Company's risk management policies and hedge effectiveness will be measured prospectively. Transition The Group will adopt the standard using the modified retrospective approach for classification and measurement and impairment. This means that the cumulative impact of the adoption will be recognized in retained earnings as of January 1, 2018 and that comparatives will not be restated. All hedge accounting relationships existing as of January 1, 2018 will be continued under IFRS 9. The Company will retrospectively adopt the cost of hedging approach for foreign currency basis spreads existing in cross-currency interest rate swaps used in a hedging relationship, the impact of which is immaterial to the consolidated financial results and position of the Group. IFRS 16, 'Leases' IFRS 16 replaces the IAS 17 Leases, the current lease accounting standard and will become effective on January 1, 2019. The new lease standard will require assets leased by the Company to be recognized on the statement of financial position of the Company with a corresponding liability. The Company is in the process of assessing the impact of IFRS 16 which is expected to have a material impact on the consolidated income statement and consolidated financial position upon adoption in 2019. IFRIC 23 'Uncertainty over income tax treatments' The Interpretation clarifies the application of recognition and measurement requirements in IAS 12 'Income Taxes' when there is uncertainty over income tax treatments. The Group has yet to assess the impact of IFRIC 23, which may be material to the consolidated income statement and consolidated financial position upon adoption in 2019.
Transactions with non-controlling interests that do not result in loss of control	Transactions with non-controlling interests that do not result in loss of control Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions—that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
Non-current assets (or disposal groups) held for sale and discontinued operations	Non-current assets (or disposal groups) held for sale and discontinued operations Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction or loss of control rather than through continuing use, and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell. Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Assets and liabilities of a disposal group classified as held for sale are presented separately from the other assets and liabilities in the statement of financial position. A discontinued operation is a component that is classified as held for sale and that represents a separate major line of business or geographical area of operations. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount in the income statement. All other notes to the financial statements include amounts for continuing operations, unless otherwise mentioned.
Revenue recognition	Revenue recognition The following accounting policies have been applied for the Group for the current and comparative years. Refer to Note 3 for details regarding upcoming changes to revenue recognition and impact for the Group in future years. Generally, revenue for products is recorded when the equipment is sold or upon transfer of the associated risks and rewards, and revenue for services is recorded when the services are rendered. Revenue for bundled packages is recorded based on the relative fair value allocation of each component in the bundle.
Dealer commissions	Dealer commissions Dealer commissions are expensed in the consolidated income statement when the services are provided unless they meet the definition of an asset. Dealer commissions are part of customer associated costs. The accounting treatment of certain dealer commissions by the Group will change upon adoption of IFRS 15 on January 1, 2018, refer to Note 3 for further details.
Leases	Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards associated with ownership of the leased asset to VEON. All other leases are classified as operating leases. The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date, or when the terms of the agreement are modified. Operating lease expenses The rental payable under operating leases is recognized as an operating lease expenses in the income statement on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of VEON's benefit. No asset is capitalized. If the periodic payments or part of the periodic payments has been prepaid, the Company recognizes these prepayments in the statement of financial position as other non-financial assets. Finance leases At the commencement of a finance lease term, VEON recognizes the assets and liabilities in its statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments as determined at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease. If there is no interest rate in the lease, the Company's incremental borrowing rate is used. Any initial direct costs of VEON related to the lease are added to the amount recognized as an asset.
Goodwill	Goodwill Goodwill is recognized for the future economic benefits arising from net assets acquired that are not individually identified and separately recognized. Goodwill is not amortized but is tested for impairment annually and as necessary when circumstances indicate that the carrying value may be impaired. The Company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the Company's CGUs. These budgets and forecast calculations are prepared for a period of five years. For longer periods, a long-term growth rate is applied to project future cash flows after the fifth year.
Income taxes	Income taxes Income tax expense represents the aggregate amount determined on the profit for the period based on current tax and deferred tax. In cases where the tax relates to items that are charged to other comprehensive income or directly to equity, the tax is also charged respectively to other comprehensive income or directly to equity. Uncertain tax positions The Group's policy is to comply with the applicable tax regulations in the jurisdictions in which its operations are subject to income taxes. The Group's estimates of current income tax expense and liabilities are calculated assuming that all tax computations filed by the Company's subsidiaries will be subject to a review or audit by the relevant tax authorities. The Company and the relevant tax authorities may have different interpretations of how regulations should be applied to actual transactions (refer Note 22 and Note 26, respectively, for further details regarding provisions recognized and risks and uncertainties). Such uncertain tax positions are accounted for in accordance with IAS 12 'Income Taxes' or IAS 37 'Provisions, Contingent Liabilities and Contingent Assets' depending on the type of tax in question. Deferred taxation Deferred taxes are recognized using the liability method and thus are computed as the taxes recoverable or payable in future periods in respect of deductible or taxable temporary differences between the tax bases of assets and liabilities and their carrying amounts in the Company's financial statements. SOURCE OF ESTIMATION UNCERTAINTY Deferred tax assets and uncertain tax positions Deferred tax assets are recognized to the extent that it is probable that the assets will be realized. Significant judgment is required to determine the amount that can be recognized and depends foremost on the expected timing, level of taxable profits, tax planning strategies and the existence of taxable temporary differences. Estimates made relate primarily to losses carried forward in some of the Group's foreign operations. When an entity has a history of recent losses, the deferred tax asset arising from unused tax losses is recognized only to the extent that there is convincing evidence that sufficient future taxable profit will be generated. Estimated future taxable profit is not considered such evidence unless that entity has demonstrated the ability by generating significant taxable profit for the current year or there are certain other events providing sufficient evidence of future taxable profit. New transactions and the introduction of new tax rules may also affect judgments due to uncertainty concerning the interpretation of the rules and any transitional rules. Uncertain tax positions are recognized when it is probable that a tax position will not be sustained, and the amount can be reliably measured. The expected resolution of uncertain tax positions is based upon management's judgment of the likelihood of sustaining a position taken through tax audits, tax courts and/or arbitration, if necessary. Circumstances and interpretations of the amount or likelihood of sustaining a position may change through the settlement process. Furthermore, the resolution of uncertain tax positions is not always within the control of the Group and it is often dependent on the efficiency of the legal processes in the relevant taxing jurisdictions in which the Group operates. Issues can, and often do, take many years to resolve.
Investments in associates and joint ventures	Investments in associates and joint ventures The Company's investments in its associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognized at cost. The carrying amount of the investment is adjusted to recognize changes in the Company's share of net profit after tax, other comprehensive income and equity of the associate or joint venture since the acquisition date. The Company assesses, at the end of each reporting period, whether there are any indicators that an investment in a Joint Venture may be impaired. If there are such indicators, the Company estimates the recoverable amount of the joint venture after applying the equity method.
Property and equipment	Property and equipment Property and equipment is stated at cost, net of any accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows: Class of property and equipment Useful life Telecommunication equipment 3 - 20 years Buildings and constructions 10 - 50 years Office and other equipment 3 - 10 years Each asset's residual value, useful life and method of depreciation is reviewed at the end of each financial year and adjusted prospectively, if necessary.
Borrowing costs	Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset that necessarily takes a substantial period of time (longer than six months) to get ready for its intended use are capitalized as part of the cost of the respective qualifying assets. All other borrowing costs are expensed in the period incurred.
Intangible assets	Intangible assets Intangible assets acquired separately are measured initially at cost and are subsequently measured at cost less accumulated amortization and impairment losses. Intangible assets with a finite useful life are generally amortized with the straight-line method over the estimated useful life of the intangible asset. The amortization period and the amortization method for intangible assets with finite useful lives are reviewed at least annually.
Financial instruments and hedging policy	Financial instruments and hedging policy The Company applies cash flow hedge accounting using financial instruments (usually derivatives) to mitigate some or all of the risk of a hedged item. Any gains or losses on the hedging instrument (generally a derivative) are initially recorded in other comprehensive income. The amount included in other comprehensive income is the lesser of the fair value of the hedging instrument and the hedged item. Where the hedging instrument's change in fair value is greater than that of the hedged item, the excess is recorded in profit or loss as ineffectiveness. Gains or losses deferred in other comprehensive income are reclassified to the income statement when the hedged item affects the income statement. The Company also applies net investment hedge accounting to mitigate foreign currency risk related to the Company's foreign operations. The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognized in other comprehensive income. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognized in other comprehensive income shall be reclassified from equity to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation. Any derivative instruments for which no hedge accounting is applied are recorded at fair value with any fair value changes recognized directly in profit or loss.
Trade and other receivables	Trade and other receivables Trade and other receivables are measured at amortized cost and include invoiced amounts less appropriate allowances for estimated uncollectible amounts. Estimated uncollectible amounts are calculated based on the ageing of the receivable balances, payment history and other evidence of collectability. Receivable balances are written off when management deems them not to be collectible.
Inventories	Inventories Inventory is measured at the lower of cost and net-realizable value and carried at the weighted average cost basis.
Provisions	Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are discounted using a current pre-tax rate if the time value of money is significant.

GENERAL INFORMATION (Tables)

GENERAL INFORMATION (Tables)	12 Months Ended
GENERAL INFORMATION (Tables)	Dec. 31, 2017
GENERAL INFORMATION
Schedule of company's largest shareholders and the remaining free float	As of December 31, 2017, the Company's largest shareholders and remaining free float are as follows: Shareholder Common shares % of common L1T VIP Holdings S.à r.l. (" LetterOne ") % Telenor East Holding II AS (" Telenor ") % Stichting Administratiekantoor Mobile Telecommunications Investor * % Free Float % Total outstanding common shares % Shares held by the Company or its subsidiaries ( "Treasury shares" ) % * LetterOne is the holder of the depositary receipts issued by Stichting and is therefore entitled to the economic benefits (dividend payments, other distributions and sale proceeds) of such depositary receipts and, indirectly, of the 145,947,562 common shares represented by the depositary receipts. According to the conditions of administration entered into between Stichting and LetterOne ( "Conditions of Administration" ) in connection with the transfer of 145,947,562 ADSs from LetterOne to Stichting on March 29, 2016, Stichting has the power to vote and direct the voting of, and the power to dispose and direct the disposition of, the ADSs, in its sole discretion, in accordance with the Conditions of Administration and Stichting's articles of association.

SIGNIFICANT ACCOUNTING POLICI39

SIGNIFICANT ACCOUNTING POLICIES THAT RELATE TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE (Tables)	12 Months Ended
	Dec. 31, 2017
SIGNIFICANT ACCOUNTING POLICIES THAT RELATE TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE
Schedule of the impact that adoption of IFRS 9 and IFRS 15 is expected to have on the opening balance sheet of the Group	The following table presents the transitional impact that adoption of IFRS 9, ' Financial Instruments ' ( "IFRS 9 ") and IFRS 15, 'Revenue from contracts with customers' ( "IFRS 15" ) is expected to have on the opening balance sheet of the Group, as of January 1, 2018. Further details regarding the impact of IFRS 9 and IFRS 15 can be found below. Impact of IFRS 9 Impact of Opening Classification Impairment Revenue and Adjusted opening Assets Non-current assets Investments in joint ventures and associates ) ) Deferred tax assets — ) Other financial assets Available for sale ) — — — Fair value through other comprehensive income — — — Other assets — — Current assets Trade and other receivables — ) — Other financial assets Available for sale ) — — — Fair value through other comprehensive income — — — Other assets — — ) Equity Equity attributable to equity owners of the parent ) ) Non-controlling interests ) — ) ) Liabilities Other liabilities (current) — — ) Deferred tax liabilities — )

FINANCIAL RISK MANAGEMENT (Tabl

FINANCIAL RISK MANAGEMENT (Tables)	12 Months Ended
FINANCIAL RISK MANAGEMENT (Tables)	Dec. 31, 2017
FINANCIAL RISK MANAGEMENT
Schedule of available facilities for liquidity risk	Amounts in millions of transactional currency US$ equivalent amounts Final Facility Utilized Available Facility Utilized Available 2017 VEON Holdings B.V.—Revolving Credit Facility* Feb 2020 US$1,688 US$250 US$1,438 VEON Holdings B.V.—Term Loan Facility May 2018 RUB 45,000 million RUB 30,000 million RUB 15,000 million Banglalink Digital Communications Ltd.—Syndicated Term Loan Facility Sep 2018 BDT 29,300 million — BDT 29,300 million — Pakistan Mobile Communications Limited—Syndicated Term Loan Facility Jun 2018 PKR 26,750 million PKR 17,000 million PKR 9,750 million Pakistan Mobile Communications Limited—Term Loan Facility Jun 2018 PKR 10,000 million PKR 5,000 million PKR 5,000 million 2016 VEON Amsterdam B.V.—Revolving Credit Facility March 2017 US$1,800 — US$1,800 — VEON Holdings B.V.—Vendor Financing Facility China Development Bank September 2018 RMB 700 million RMB 149 million RMB 551 million PJSC VimpelCom—Revolving Credit Facility Sberbank May 2017 RUB 15,000 million — RUB 15,000 million — Optimum Telecom Algérie SpA—Term Loan Facility December 2017 DZD 32,000 million — DZD 32,000 million — * The facility amount of US$1,688 is available until February 2020. Subsequently a reduced facility amount of US$1,586 is available until February 2021.
Schedule of maturity analysis of financial liabilities	Less 1 - 3 years 3 - 5 years More Total At December 31, 2017 Bank loans and bonds Derivative financial liabilities Gross cash inflows ) ) ) — ) Gross cash outflows — Trade and other payables — — — Other financial liabilities — — — Warid non-controlling interest put option liability — — — Total financial liabilities Related derivatives financial assets Gross cash inflows ) — — — ) Gross cash outflows — — — Related derivative financial assets ) — — — ) Total financial liabilities, net of derivative assets Less 1 - 3 years 3 - 5 years More Total At December 31, 2016 Bank loans and bonds Derivative financial liabilities Gross cash inflows ) — — — ) Gross cash outflows — — Trade and other payables and dividend payables — — — Other financial liabilities — — Warid non-controlling interest put option liability — — — Total financial liabilities Related derivatives financial assets Gross cash inflows ) — — — ) Gross cash outflows — — — Related derivative financial assets ) — — — ) Total financial liabilities, net of derivative assets
INTEREST RATE RISK
FINANCIAL RISK MANAGEMENT
Schedule of sensitivity analysis	Effect on profit / Effect on other Increase / decrease in basis points +100 –100 +100 –100 2017 Euro ) ) U.S. Dollar ) ) Pakistani Rupee ) ) Ukrainian Hryvnia ) — — Other currencies ) — — 2016 Algerian Dinar ) — — Uzbek Som ) — — Pakistani Rupee — — ) Ukrainian Hryvnia ) — — Other currencies ) — —
FOREIGN CURRENCY RISK
FINANCIAL RISK MANAGEMENT
Schedule of sensitivity analysis	Effect on profit / Effect on other Change in foreign exchange rate against US$ 10% 10% 10% 10% 2017 Russian Ruble ) — — Bangladeshi Taka ) — — Pakistani Rupee ) — — Kazakh Tenge ) — — Uzbek Som ) — — Georgian Lari ) — — Armenian dram ) — — Euro ) ) Algerian Dinar ) — — Other currencies ) — — 2016 Russian Ruble ) ) Bangladeshi Taka ) — — Pakistani Rupee ) — — Kazakh Tenge ) — — Uzbek Som ) ) Georgian Lari ) — — Armenian dram ) — — Euro ) — — Algerian Dinar ) — — Other currencies ) — —

SIGNIFICANT TRANSACTIONS (Table

SIGNIFICANT TRANSACTIONS (Tables)	12 Months Ended
SIGNIFICANT TRANSACTIONS (Tables)	Dec. 31, 2017
Significant Transactions
Schedule of key assumptions used in the discounted cash flow model	Key assumptions November 5, 2016 Discount rate (functional currency) % Average annual revenue growth rate during forecast period (functional currency) )% Terminal growth rate % Average operating (EBITDA) margin during forecast period % Average capital expenditure as a percentage of revenue %
Schedule of effect of the disposal of Italy for the current year	Note 2016 Fair value of investment in joint venture 14 Cash consideration receivable* Total consideration on disposal De-recognition of assets classified as held for sale ) De-recognition of liabilities classified as held for sale Release of cumulative other comprehensive income related to Italy Gain on disposal of discontinued operations, net of tax * Cash consideration receivable relates to a Final Adjustment payable by HET to the Company based on contributed Working Capital and Net Cash.
Schedule of financial information related to the discontinued operation	2016 2015 Total operating revenues Total operating expenses ) ) Operating profit Other (expenses) / income ) ) Profit / (loss) before tax Income tax (expense) / benefit ) ) Profit / (loss) after tax for the period from discontinued operations
Schedule of fair values of the identifiable assets and liabilities of Warid	2016 Non-current assets Property and equipment Intangible assets Deferred tax assets Other financial assets Current assets Inventories Trade and other receivables Other non-financial assets Current income tax assets Cash and cash equivalents Non-current liabilities Financial liabilities ) Provisions ) Other non-financial liabilities ) Current liabilities Trade and other payables ) Other non-financial liabilities ) Other financial liabilities ) Total identifiable net assets at fair value Purchase consideration Goodwill resulting from the acquisition Purchase consideration Share issued by PMCL Contingent consideration liability Total purchase consideration Analysis of cash flows on acquisition Net cash acquired with the subsidiary (included in cash flows from investing activities) Net cash flow on acquisition
Towers in Pakistan classified as held-for-sale
Significant Transactions
Schedule of assets and liabilities classified as held for sale as of balance sheet date	2017 Property and equipment Goodwill Deferred tax assets Other non-current assets Other current assets Total assets held for sale Non-current liabilities ) Current liabilities ) Total liabilities held for sale )
Laos operations classified as held for sale
Significant Transactions
Schedule of assets and liabilities classified as held for sale as of balance sheet date	2017 Property and equipment Intangible assets Current assets Total assets held for sale Non-current liabilities ) Current liabilities ) Total liabilities held for sale )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
EARNINGS PER SHARE (Tables)	Dec. 31, 2017
EARNINGS PER SHARE
Schedule of earnings per share for continuing operations	Continuing operations (In millions of U.S. dollars, except share and per share amounts) 2017 2016 2015 Numerator: (Loss) / profit for the period attributable to the owners of the parent ) ) ) Denominator: Weighted average common shares outstanding for basic earnings per share (in millions) Effect of dilutive securities: Employee stock options (in millions) — — Denominator for diluted earnings per share (in millions) Basic (loss) / earnings per share $ ) $ ) $ ) Diluted (loss) / earnings per share $ ) $ ) $ )
Schedule of earnings per share for discontinuing operations	Discontinued operations (In millions of U.S. dollars, except share and per share amounts) 2017 2016 2015 Numerator: (Loss) / profit for the period attributable to the owners of the parent — Denominator: Weighted average common shares outstanding for basic earnings per share (in millions) Effect of dilutive securities: Employee stock options (in millions) — — Denominator for diluted earnings per share (in millions) Basic (loss) / earnings per share $ $ $ Diluted (loss) / earnings per share $ $ $

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
SEGMENT INFORMATION (Tables)	Dec. 31, 2017
SEGMENT INFORMATION
Summary of reportable segments financial information	External customers Inter-segment Total revenue Revenue 2017 2016 2015* 2017 2016 2015 2017 2016 2015* Russia Pakistan — — Algeria — — Bangladesh — — — Ukraine Uzbekistan — HQ — — — — — — — Other ) ) ) Total segments — — — * Amounts have been re-presented to conform with current year presentation, refer to Note 8. Adjusted EBITDA Capital expenditures Other disclosures 2017 2016 2015 2017 2016 2015 Russia Pakistan Algeria Bangladesh Ukraine Uzbekistan HQ ) ) ) Other Total segments
Summary of segments reconciliation of consolidated Adjusted EBITDA to consolidated income statement before tax	2017 2016 2015 Total Segments Adjusted EBITDA Depreciation ) ) ) Amortization ) ) ) Impairment losses ) ) ) Loss on disposals of non-current assets ) ) ) Finance costs ) ) ) Finance income Other non-operating losses, net ) ) ) Share of (loss) / profit of joint ventures and associates ) Impairment of joint ventures and associates ) ) — Net foreign exchange (loss) / (gain) ) ) (Loss) / profit before tax ) )
Summary of geographical information of non-current assets	2017 2016* Russia Pakistan Algeria Bangladesh Ukraine Uzbekistan HQ Other Total segments * Amounts have been re-presented to conform with current year presentation.

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
REVENUE (Tables)	Dec. 31, 2017
REVENUE
Summary of total operating revenue from external customers by mobile and fixed line services	2017 2016 2015 Mobile services Fixed line services Total revenue

SELLING, GENERAL AND ADMINIST45

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables)	12 Months Ended
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables)	Dec. 31, 2017
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Schedule of selling, general and administrative expenses	2017 2016 2015 Network and IT costs Personnel costs Customer associated costs Losses on receivables Taxes, other than income taxes Other Total selling, general and administrative expenses

IMPAIRMENT (Tables)

IMPAIRMENT (Tables)	12 Months Ended
IMPAIRMENT (Tables)	Dec. 31, 2017
IMPAIRMENT
Schedule of impairment losses	Note 2017 2016 2015 Property and equipment 15 Intangible assets 16 — — Goodwill Total impairment loss
Schedule of goodwill acquired through business combinations allocated to CGUs for impairment testing	Year ended December 31, 2017 2017 Impairment Reclassification* Translation 2016 Russia — — Algeria — — ) Pakistan — ) ) Kazakhstan — — Kyrgyzstan ) — — Uzbekistan — — ) Armenia ) — — Tajikistan — — — — — Others — — — — — Total ) ) ) * Reclassified to assets held-for-sale, see Note 5 for further information. Year ended December 31, 2016 2016 Impairment Acquisition Translation 2015 Russia — — Algeria — — ) Pakistan — Kazakhstan — — Kyrgyzstan ) — Uzbekistan — — ) Armenia — — — Tajikistan — ) — — Others — ) — — Total )
Schedule of total amount of the impairment loss allocated to the carrying amounts of assets	Impairment losses in 2017 Armenia Kyrgyzstan Other Total Property and equipment — — Goodwill — Total impairment loss Impairment losses in 2016 were allocated to current and non-current assets as follows: Georgia Kyrgyzstan Tajikistan Other Total Property and equipment — Intangibles — — Goodwill — Other assets* — — — Total impairment loss * Other assets include trade and other receivables and deferred tax assets. The impairments on these assets have been recognized on the income statement accounts relating to these assets, i.e. Selling, general and administrative expenses and Income tax expense.
Schedule of key assumptions and inputs used by the Company in determining the recoverable amount	Assumption Description Discount rate Discount rates are initially determined in US$ based on the risk-free rate for 20-year maturity bonds of the United States Treasury, adjusted for a risk premium to reflect both the increased risk of investing in equities and the systematic risk of the specific CGU relative to the market as a whole. The equity market risk premium used was 6.0% (2016: 5.5%, 2015: 5.5%). The systematic risk, beta, represents the median of the raw betas of the entities comparable in size and geographic footprint with the ones of the Company ( "Peer Group" ). The debt risk premium is based on the median of Standard & Poor's long-term credit rating of the Peer Group. The weighted average cost of capital is determined based on target debt-to-equity ratios representing the median historical five-year capital structure for each entity from the Peer Group. The discount rate in functional currency of a CGU is adjusted for the long-term inflation forecast of the respective country in which the business operates, as well as the applicable country risk premium. Projected revenue growth rates The revenue growth rates vary based on numerous factors, including size of market, GDP (Gross Domestic Product), foreign currency projections, traffic growth, market share and others. Projected average operating margin The Company estimates operating margin based on Adjusted EBITDA divided by Total Operating Revenue for each CGU and each future year. The forecasted operating margin is based on the budget of the following year and assumes cost optimization initiatives which are part of on-going operations, as well as regulatory and technological changes known to date, such as telecommunication license issues and price regulation among others. Average capital expenditure as a percentage of revenue Capital expenditure ( "CAPEX" ) is defined as purchases of property and equipment and intangible assets other than goodwill. The cash flow forecasts for capital expenditure are based on past experience and amounts budgeted for the following year(s) and include the network roll-outs plans and license requirements. Projected license and spectrum payments The cash flow forecasts for license and spectrum payments for each operating company for the initial five years include amounts for expected renewals and newly available spectrum. Beyond that period, a long-run cost of spectrum is assumed. Long-term growth rate A long-term growth rate into perpetuity is estimated based on a percentage that is lower than or equal to the country long-term inflation forecast, depending on the CGU.
Schedule of key assumptions used in fair value less costs of disposal calculations	Discount rate Average annual Terminal growth rate 2017 2016 2015 2017 2016 2015 2017 2016 2015 Russia % % % % % % % % % Ukraine % % % % % % % % % Algeria % % % % )% )% % % % Pakistan % % % % % % % % % Bangladesh % % % % % % % % % Kazakhstan % % % % % % % % % Kyrgyzstan % % % )% )% % % % % Uzbekistan % % % % % % % % % Armenia % % % )% )% )% % % % Georgia % % % % % % % % % Tajikistan n.a. n.a. % n.a. n.a. )% n.a. n.a. % Average operating Average CAPEX as a 2017 2016 2015 2017 2016 2015 Russia % % % % % % Ukraine % % % % % % Algeria % % % % % % Pakistan % % % % % % Bangladesh % % % % % % Kazakhstan % % % % % % Kyrgyzstan % % % % % % Uzbekistan % % % % % % Armenia % % % % % % Georgia % % % % % % Tajikistan n.a. n.a. % n.a. n.a. %
Schedule of sensitivity to changes in assumptions	Potential impairment if an assumption changes by 1.0pp CGU Headroom Discount Average Average Average Terminal Bangladesh ) — — — ) Uzbekistan ) ) — ) ) Georgia — — — — —

OTHER NON-OPERATING LOSSES, N47

OTHER NON-OPERATING LOSSES, NET (Tables)	12 Months Ended
OTHER NON-OPERATING LOSSES, NET (Tables)	Dec. 31, 2017
OTHER NON-OPERATING LOSSES, NET
Schedule of other non-operating (losses) / gains	2017 2016 2015 Loss from early debt redemption ) — Change of fair value of embedded derivative ) — Change of fair value of other derivatives ) ) ) Impairment loss of other financial assets ) — ) Gains relating to past acquisitions and divestments — — Other (losses) / gains ) ) Other non-operating losses, net ) ) )

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2017
INCOME TAXES
Summary of income tax expense	2017 2016 2015 Current income taxes Current year Adjustments in respect of previous years ) ) Total current income taxes Deferred income taxes Origination / reversal of temporary differences ) ) ) Changes in tax rates ) Current year tax losses unrecognized Recognition / utilization of previously unrecognized tax losses or tax credits — ) ) Derecognition of previously recognized tax losses — Expiration of tax losses — — Write off deferred tax assets — Adjustments in respect of previous years — Other — ) ) Total deferred tax expense ) Income tax expense
Summary of reconciliation between statutory and effective income tax	2017 2016 2015 (Loss) / profit before tax from continued operations ) ) Income tax benefit at statutory tax rate (25.0%) ) ) Difference due to the effects of: Different tax rates in different jurisdictions ) ) Non-deductible expenses Non-taxable income ) ) ) Adjustments in respect of previous years ) Movement in (un)recognized deferred tax assets Withholding taxes ) Tax claims Change in income tax rate ) Minimum taxes and other Income tax expense Effective tax rate – 1,966.7 % % – 37.0 %
Schedule of deferred tax assets and liabilities in the statement of financial position	2017 2016 Deferred tax assets Deferred tax liabilities ) ) Net deferred tax position )
Summary of movements of deferred tax assets and liabilities	The following table shows the movements of the deferred tax assets and liabilities in 2017: Movement in deferred taxes Opening Net Changes in Other Currency Tax Closing Property and equipment, net ) ) — ) ) — ) Intangible assets, net ) — — ) — ) Trade receivables — ) ) — Other assets ) ) — — ) Provisions — ) — Long-term debt ) — ) — Accounts payable — ) — Other liabilities ) — ) — Other movements and temporary differences ) — — — — ) Deferred subnational income taxes and other ) — ) — Withholding tax on distributed earnings ) ) — ) — ) ) ) — ) — ) Tax losses and other balances carried forwards ) — ) — Non-recognized deferred tax assets on losses and credits ) — — ) — — ) Non-recognized deferred tax assets on temporary differences ) — — — — — Net deferred tax positions ) — ) — ) The following table shows the movements of the deferred tax assets and liabilities in 2016: Movement in deferred taxes Opening Net Changes in Other Currency Tax Closing Property and equipment, net ) ) ) Intangible assets, net ) ) ) ) ) Trade receivables — ) ) — Other assets ) — — ) — ) Provisions ) — Long-term debt — ) — Accounts payable — — Other liabilities ) — Other movements and temporary differences — — — Deferred subnational income taxes and other ) ) — — ) Withholding tax on distributed earnings ) ) — — ) — ) ) ) — ) Tax losses and other balances carried forwards* ) ) ) ) Non-recognized deferred tax assets on losses and credits * ) — — ) ) Non-recognized deferred tax assets on temporary differences ) ) — — — ) Net deferred tax positions ) ) ) — * The deferred tax movements in other comprehensive income in 2016 relates to non-recognized deferred tax asset on losses of US$3 for Wind Telecom S.p.A.
Summary of amount and expiry date of deductible temporary differences, unused tax losses and other carry forwards	As of December 31, 2017 0 - 5 years 6 - 10 years More than Indefinite Total Tax losses expiry Recognized losses ) ) — ) ) Recognized DTA — Non-recognized losses ) ) — ) ) Non-recognized DTA — As of December 31, 2017 0 - 5 years 6 - 10 years More than Indefinite Total Other credits carried forwards expiry Recognized credits ) — — — ) Recognized DTA — — — Non-recognized credits — — — — — Non-recognized DTA — — — — — As of December 31, 2016 0 - 5 years 6 - 10 years More than Indefinite Total Tax losses expiry Recognized losses ) — — ) ) Recognized DTA — — Non-recognized losses ) ) — ) ) Non-recognized DTA — Other credits carried forwards expiry Recognized credits ) — — — ) Recognized DTA — — — Non-recognized credits — — — ) ) Non-recognized DTA — — —

INVESTMENTS IN SUBSIDIARIES (Ta

INVESTMENTS IN SUBSIDIARIES (Tables)	12 Months Ended
INVESTMENTS IN SUBSIDIARIES (Tables)	Dec. 31, 2017
INVESTMENTS IN SUBSIDIARIES
Schedule of information about significant subsidiaries	Equity Country of Nature of Name of significant subsidiary 2017 2016 VEON Amsterdam B.V. Netherlands Holding % % VEON Holdings B.V. Netherlands Holding % % PJSC VimpelCom Russia Operating % % JSC "Kyivstar" Ukraine Operating % % LLP "KaR-Tel" Kazakhstan Operating % % LLC "Tacom" Tajikistan Operating % % LLC "Unitel" Uzbekistan Operating % % LLC "VEON Georgia" Georgia Operating % % CJSC "VEON Armenia" Armenia Operating % % LLC "Sky Mobile" Kyrgyzstan Operating % % VimpelCom Lao Co. Ltd. Lao PDR Operating % % VEON Luxembourg Holdings S.à r.l. Luxembourg Holding % % VEON Luxembourg Finance Holdings S.à r.l. Luxembourg Holding % % VEON Luxembourg Finance S.A. Luxembourg Holding % % Global Telecom Holding S.A.E Egypt Holding % % Omnium Telecom Algérie S.p.A.* Algeria Holding % % Optimum Telecom Algeria S.p.A.* Algeria Operating % % Pakistan Mobile Communications Limited Pakistan Operating % % Banglalink Digital Communications Limited Bangladesh Operating % % Wind Telecom S.p.A.** Italy Holding — % * The Group has concluded that it controls Omnium Telecom Algérie S.p.A and Optimum Telecom Algeria S.p.A even though its subsidiary, Global Telecom Holding S.A.E. owns less than 50% of the ordinary shares. This is because the Company can exercise operational control through a shareholders' agreement. ** On December 1, 2017, Wind Telecom S.p.A. merged into VEON Holdings.
Schedule of information about materially partly-owned subsidiaries	Equity Book values of Profit / Name of significant subsidiary 2017 2016 2017 2016 2017 2016 LLP "KaR-Tel" ( "Kar-Tel" ) % % LLC "Sky Mobile" ( "Sky Mobile" ) % % ) Global Telecom Holding S.A.E ( "GTH" ) % % ) ) ) Omnium Telecom Algérie S.p.A. ( "OTA" ) % %
Schedule of summarized income statement of subsidiaries before inter-company eliminations	Kar-Tel Sky Mobile GTH OTA 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Operating revenue Operating expenses ) ) ) ) ) ) ) ) ) ) ) ) Other (expenses) / income ) ) ) ) ) ) ) ) ) Profit / (loss) before tax ) Income tax expense ) ) ) ) ) ) ) ) ) ) ) ) Profit / (loss) for the year ) ) ) Total comprehensive income / (loss) ) ) ) Attributed to NCIs ) ) Dividends paid to NCIs — — — — — — — — — )
Schedule of summarized financial position of subsidiaries before inter-company eliminations	Kar-Tel Sky Mobile GTH OTA 2017 2016 2017 2016 2017 2016 2017 2016 Property and equipment Intangible assets Other non-current assets Trade and other receivables Cash and cash equivalents Other current assets Financial liabilities — — — — ) ) ) ) Provisions ) ) ) ) ) ) ) ) Other liabilities ) ) ) ) ) ) ) ) Total equity Attributed to: Equity holders of the parent Non-controlling interests ) )
Schedule of summarized cash flow statement of subsidiaries before inter-company eliminations	Kar-Tel Sky Mobile GTH OTA 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net operating cash flows ) ) Net investing cash flows ) ) ) ) ) ) ) ) ) ) ) Net financing cash flows ) ) ) — ) ) ) ) ) ) ) ) Effect of exchange rate changes on cash and cash equivalents — ) — ) ) ) ) ) ) ) ) Net increase / (decrease) in cash equivalents ) ) ) ) ) ) ) ) ) ) )

INVESTMENTS IN JOINT VENTURES50

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (Tables)	12 Months Ended
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES (Tables)	Dec. 31, 2017
INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
Schedule of significant joint ventures	Equity Country of Nature of Name of significant joint venture 2017 2016 VIP-CKH Luxembourg S.à.r.l.* Luxembourg Holding % % VIP-CKH Ireland Limited* Ireland Financing % % Euroset Holding N.V. ( "Euroset" ) Russia Operating % % * Together, the "Italy Joint Venture", see "Significant accounting judgement" below, in this Note 14).
Schedule of aggregated financial information in joint ventures	Italy Joint Euroset Other Total As of January 1, 2015 — Share of profit / (loss) — ) Reclassified to assets held for sale — — ) ) Foreign currency translation — ) ) ) As of December 31, 2015 — Acquisitions — — Share of profit / (loss) ) ) Impairment of Euroset — ) — ) Foreign currency translation ) ) ) As of December 31, 2016 — Share of loss of joint ventures ) ) — ) Share of other comprehensive loss ) — — ) Impairment of Euroset — ) — ) Foreign currency translation — As of December 31, 2017 — —
Schedule of summarized income statement of joint venture	Income statement and statement of comprehensive income 2017 2016* Operating revenue Operating expenses ) ) Other expenses ) ) Income tax expenses ) ) Loss for the period ) Other comprehensive loss ) — Total comprehensive loss ) * Results for 2016 are included from November 5, 2016, being the date the joint venture was formed.
Schedule of summarized financial position joint venture	Statement of financial position 2017 2016* Non-current assets Current assets Assets held for sale Total assets Non-current liabilities ) ) Current liabilities ) ) Liabilities relating to assets held for sale ) — Total liabilities ) ) Net assets Reconciliation to carrying amounts Company's equity interest % % Company's share of Italy Joint Venture net assets Carrying amount Included in the balances disclosed above are the following: Cash and cash equivalents Current financial liabilities* ) ) Non-current financial liabilities* ) ) * Financial liabilities exclude trade and other payables and provisions.
Summary of reportable segments financial information joint venture	2017 2016* Revenue External customers Inter-segment — Total revenue Adjusted EBITDA Other disclosures Capital expenditure * Results for 2016 are included from November 5, 2016, being the date the joint venture was formed.
Schedule of reconciliation of Adjusted EBITDA to (loss) / profit Joint Venture	2017 2016* Adjusted EBITDA Depreciation and amortization ) ) Impairment of non-current assets ) — Gain / (loss) on disposals of non-current assets ) — Net finance costs ) ) Other non-operating (losses) / gains ) Income tax expenses ) ) (Loss) / profit for the period ) * Results for 2016 are included from November 5, 2016, being the date the joint venture was formed.
Schedule of key assumptions used for determining the recoverable amount using the most recent cash flow projections	Key assumptions Q2 2017 Q4 2016 Discount rate (functional currency) % % Average annual revenue growth rate during forecast period (functional currency) % % Terminal growth rate % % Average operating (EBITDA) margin during forecast period % % Average capital expenditure as a percentage of revenue % %

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Dec. 31, 2017
PROPERTY AND EQUIPMENT
Schedule of property and equipment	Telecommunications Land, Office and Equipment not Total Cost As of January 1, 2016 Acquisition (Note 5) Additions Disposals ) ) ) ) ) Transfer ) — Translation adjustment ) As of December 31, 2016 Reclassified to assets held for sale (Note 5) ) ) ) ) ) Additions Disposals ) ) ) ) ) Transfer ) — Translation adjustment ) ) ) ) As of December 31, 2017 Accumulated depreciation and impairment As of January 1, 2016 ) ) ) ) ) Transfer ) ) ) — Depreciation charge for the year ) ) ) — ) Disposals Impairment ) ) ) ) ) Translation adjustment ) ) ) ) As of December 31, 2016 ) ) )) ) ) Reclassified to assets held for sale (Note 5) — Transfer ) — Depreciation charge for the year ) ) ) — ) Disposals Impairment ) — — ) ) Translation adjustment ) As of December 31, 2017 ) ) ) ) ) Net book value As of January 1, 2016 As of December 31, 2016 As of December 31, 2017
Schedule of estimated useful lives	Class of property and equipment Useful life Telecommunication equipment 3 - 20 years Buildings and constructions 10 - 50 years Office and other equipment 3 - 10 years

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
INTANGIBLE ASSETS (Tables)	Dec. 31, 2017
INTANGIBLE ASSETS
Schedule of total gross carrying value and accumulated amortization of intangible assets	Telecommunications Software Brands and Customer Other Total Cost As of January 1, 2016 Acquisition in Pakistan (Note 5) — Additions — — ) Disposals ) ) — ) ) ) Transfer — — — ) — Translation adjustment ) ) As of December 31, 2016 Reclassified to assets held for sale (Note 5) ) — — — — ) Additions — — Disposals ) ) — — ) ) Transfer — — — ) — Translation adjustment ) ) ) ) ) ) As of December 31, 2017 Accumulated amortization and impairment As of January 1, 2016 ) ) ) ) ) ) Amortization charge for the year ) ) ) ) ) ) Disposals — Impairment ) ) — — — ) Translation adjustment ) ) ) ) As of December 31, 2016 ) ) ) ) ) ) Reclassified to assets held for sale — — — — Amortization charge for the year ) ) ) ) ) ) Disposals — — Translation adjustment As of December 31, 2017 ) ) ) ) ) ) Net book value As of January 1, 2016 As of December 31, 2016 As of December 31, 2017

FINANCIAL ASSETS AND LIABILIT53

FINANCIAL ASSETS AND LIABILITIES (Tables)	12 Months Ended
FINANCIAL ASSETS AND LIABILITIES (Tables)	Dec. 31, 2017
FINANCIAL ASSETS AND LIABILITIES
Schedule of financial assets	Carrying Fair value Financial assets 2017 2016 2017 2016 Financial assets at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts Embedded derivatives in notes Financial assets at fair value Available for sale financial assets Total financial assets at fair value Loans granted, deposits and other financial assets Bank deposits and interest accrued Cash pledged as collateral* — — Other investments Other loans granted Total loans granted, deposits and other financial assets Total financial assets Non-current Current * As of December 31, 2017, cash balances of US$987 are pledged as collateral for the Mandatory Tender Offer for the purchase of shares of GTH, refer to Note 5 for further details.
Schedule of financial liabilities	Carrying value Fair value Financial Liabilities 2017 2016 2017 2016 Financial liabilities at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — Contingent consideration Financial liabilities at fair value Derivatives designated as net investment hedges Cross currency interest rate exchange contracts — — Derivatives designated as cash flow hedges Foreign exchange contracts — — Interest rate exchange contracts Total financial liabilities at fair value Financial liabilities at amortized cost Bank loans and bonds, principal Interest accrued Discounts, unamortized fees, hedge basis adjustment ) — — Bank loans and bonds at amortized cost Put-option liability over non-controlling interest Other financial liabilities Total financial liabilities at amortized cost Total financial liabilities Non-current Current
Schedule of principal amounts outstanding for interest-bearing loans and bonds	Principalamountoutstanding Borrower Type of debt Guarantor Currency Interest rate Maturity 2017 2016 VEON Holdings Loans None RUB 8.75% - 10.0% 2022 — VEON Holdings Notes None (2016: PJSC VimpelCom) US$ 5.2% - 5.95% 2019 - 2023 VEON Holdings Notes None US$ 3.95% - 4.95% 2021 - 2024 — VEON Holdings Loans None EUR 3mEURIBOR + 1.9% - 2.75% 2022 — VEON Holdings Notes PJSC VimpelCom US$ 7.5% 2022 VEON Holdings Syndicated loan (RCF) None US$ 1mLIBOR + 2.25% 2018 — VEON Holdings Notes None RUB 9.0% 2018 VEON Holdings Notes PJSC VimpelCom US$ 6.25% 2017 — GTH Finance B.V. Notes VEON Holdings B.V. US$ 6.25% - 7.25% 2020 - 2023 VIP Finance Ireland Eurobonds None US$ 7.748% - 9.1% 2018 - 2021 PMCL Loans None PKR 6mKIBOR + 0.35% - 0.8% 2020 - 2022 PMCL Loans EKN* US$ 6mLIBOR + 1.9% 2020 Banglalink Senior Notes None US$ 8.6% 2019 PJSC VimpelCom Ruble Bonds None RUB 10.0% - 11.9% 2017 PJSC VimpelCom Loans None RUB 12.75% 2017 - 2018 — VEON Amsterdam Loans None US$ 1mLibor + 3.3% 2017 — Omnium Telecom Algeria SpA Syndicated loan None DZD Bank of Algeria re-discount rate + 2.0% 2019 — Other loans Total bank loans and bonds * Exportkreditnämnden (The Swedish Export Credit Agency)
Schedule of reconciliation of cash flows from financing activities	Bank loans and bondsat amortized cost Balance as of January 1, 2017 Cash flows Proceeds from borrowings, net of fees paid Repayment of borrowings ) Interest paid ) Non-cash movements Interest accrued Early redemption premium accrued* Foreign currency translation Other non-cash movements Balance as of December 31, 2017 * Early redemption premium accrued in respect of the settlement of the cash tender offer for certain outstanding debt securities, see below for further information. The amount accrued relates to the excess of purchase price over the principal amount outstanding, which, together with the release of unamortized debt issuance costs and unamortized fair value hedge basis adjustment, resulted in a loss from early debt redemption of US$124, recorded within "Other non-operating gains/losses" (refer to Note 11).
Schedule of hedge accounting with derivatives as hedging items	Nominalvalue Fair valueof assets Fair valueof liabilities Risk beinghedged 2017 2016 2017 2016 2017 2016 Cash flow hedge accounting Interest rate exchange contracts Interest — — Foreign exchange contracts Currency — — — — Net investment hedge accounting Cross currency interest rate exchange contracts Currency — — — — No hedge accounting applied Cross currency interest rate exchange contracts Currency — — — — — Foreign exchange contracts Currency —
Schedule of cash flows of the derivatives, to which cash flow hedge accounting applies	Less than1 year 1 - 3 years 3 - 5 years More than5 years Total As of December 31, 2017 Cash flows ) ) — — ) Cash flow hedge reserve As of December 31, 2016 Cash flows ) ) — — ) Cash flow hedge reserve* ) * The balance of the Cash flow hedge reserve at December 31, 2016 amounted to approximately US$300 thousand.
Schedule of disclosure of fair value measurements separately for each major class of assets and liabilities.	As of December 31, 2017 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — Embedded derivatives in notes — — Financial assets at fair value Available for sale financial assets — — Total financial assets at fair value — — Financial liabilities at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — — — Contingent consideration — — Financial liabilities at fair value Derivatives designated as net investment hedges Cross currency interest rate exchange contracts — — Derivatives designated as cash flow hedges Interest rate exchange contracts — — Total financial liabilities at fair value — As of December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — Embedded derivatives in notes — — Financial assets at fair value Derivatives designated as cash flow hedges Foreign exchange contracts — — — — Available for sale financial assets — Total financial assets at fair value — Financial liabilities at fair value through profit or loss Derivatives not designated as hedges Foreign exchange contracts — — Financial liabilities at fair value Derivatives designated as cash flow hedges Foreign exchange contracts — — Interest rate exchange contracts — — Contingent consideration — — Total financial liabilities at fair value —
Schedule of reconciliation of movements relating to financial instruments classified in level 3 of the fair value hierarchy	Financial assets Financial liabilities Available Total Contingent Total As of January 1, 2016 — — Change in fair value recognized in other comprehensive income — — Purchased / incurred — — Currency translation adjustments ) ) — — As of December 31, 2016 Change in fair value recognized in the income statement — — Change in fair value recognized in other comprehensive income ) ) — — Impairment loss ) ) — — As of December 31, 2017 — —
Schedule of offsetting financial assets and liabilities	Related amounts not Gross amounts Net amounts Gross Financial Cash Net As of December 31, 2017 Other financial assets (non-current) — — — Other financial liabilities (non-current) — — — Other financial assets (current) — — — Other financial liabilities (current) — — — Trade and other receivables — — Trade and other payables — — As of December 31, 2016 Other financial assets (non-current) — — — Other financial liabilities (non-current) — — — Other financial assets (current) — — — Other financial liabilities (current) ) — — Trade and other receivables ) — — Trade and other payables ) — —

CASH AND CASH EQUIVALENTS (Tabl

CASH AND CASH EQUIVALENTS (Tables)	12 Months Ended
CASH AND CASH EQUIVALENTS (Tables)	Dec. 31, 2017
CASH AND CASH EQUIVALENTS
Schedule of cash and cash equivalents	2017 2016 Cash at banks and on hand Short-term deposits with original maturity of less than three months Total cash and cash equivalents

OTHER ASSETS AND LIABILITIES (T

OTHER ASSETS AND LIABILITIES (Tables)	12 Months Ended
OTHER ASSETS AND LIABILITIES (Tables)	Dec. 31, 2017
OTHER ASSETS AND LIABILITIES
Schedule of other non-current assets	2017 2016 Other non-current assets Advances to suppliers Deferred costs related to connection fees Indemnification assets Total other non-current assets
Schedule of other current assets	2017 2016 Other current assets Advances to suppliers Input value added tax Prepaid taxes Deferred costs related to connection fees Other assets Total other current assets
Schedule of other non-current liabilities	2017 2016 Other non-current liabilities Long-term deferred revenue Provision for pensions and other post-employment benefits Other liabilities Total other non-current liabilities
Schedule of other current liabilities	2017 2016 Other current liabilities Customer advances Short-term deferred revenue Customer deposits Other taxes payable Other payments to authorities Due to employees Other liabilities Total other current liabilities

TRADE AND OTHER RECEIVABLES (Ta

TRADE AND OTHER RECEIVABLES (Tables)	12 Months Ended
TRADE AND OTHER RECEIVABLES (Tables)	Dec. 31, 2017
TRADE AND OTHER RECEIVABLES
Schedule of trade and other receivables	2017 2016 Trade receivables, grossw Allowance for doubtful debt ) ) Trade receivables, net Other receivables Total trade and other receivables
Schedule of movements in the allowance for doubtful debt	2017 2016 Balance as of January 1 Acquisition of a subsidiary — Divestment of a subsidiary — ) Classified as held for sale ) — Allowance for doubtful debts Recoveries ) ) Accounts receivable written off ) ) Foreign currency translation adjustment ) Balance as of December 31
Schedule of aging of trade receivables	2017 2016 Neither past due nor impaired Past due but not impaired Past due and impaired Less than 30 days past due Between 30 and 120 days past due Greater than 120 days past due Total trade receivables

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
INVENTORIES (Tables)	Dec. 31, 2017
INVENTORIES
Schedule of inventories	2017 2016 Telephone handsets and accessories for sale SIM-Cards Other inventory Inventory write-downs ) ) Total inventories

PROVISIONS (Tables)

PROVISIONS (Tables)	12 Months Ended
PROVISIONS (Tables)	Dec. 31, 2017
PROVISIONS
Schedule of movement in provisions	Income tax Indirect tax Decommissioning Legal Other Total Cost As of January 1, 2016 Acquisitions — — — Divestments — ) — — ) ) Arising during the year Utilized ) ) — ) ) ) Unused amounts reversed ) ) ) ) ) Discount rate adjustment and imputed interest (change in estimate) — — — — Translation adjustments and other ) — ) ) ) As of December 31, 2016 Current — Non-current — As of January 1, 2017 Arising during the year Reclassified to assets held for sale ) — ) — — ) Utilized ) ) ) ) ) ) Unused amounts reversed ) ) ) ) ) ) Discount rate adjustment and imputed interest (change in estimate) — — — — Translation adjustments and other ) ) — ) ) As of December 31, 2017 Non-current — — Current —

ISSUED CAPITAL AND RESERVES (Ta

ISSUED CAPITAL AND RESERVES (Tables)	12 Months Ended
ISSUED CAPITAL AND RESERVES (Tables)	Dec. 31, 2017
ISSUED CAPITAL AND RESERVES
Summary of common shares	2017 2016 Authorized common shares (nominal value of US$0.001 per share) Issued shares (see Note 1) Treasury shares ) ) Outstanding shares

DIVIDENDS PAID AND PROPOSED (Ta

DIVIDENDS PAID AND PROPOSED (Tables)	12 Months Ended
DIVIDENDS PAID AND PROPOSED (Tables)	Dec. 31, 2017
DIVIDENDS PAID AND PROPOSED
Schedule of declared dividends paid or payable to non-controlling interests	Name of subsidiary Dividend declared Dividend paid Paid or VIP Kazakhstan Holding AG October 6, 2017 October 10, 2017 Omnium Telecom Algeria S.p.A June 21, 2017 August 18, 2017 TNS Plus LLP May 12, 2017 May 15, 2017 VIP Kyrgyzstan Holding AG February 13, 2017 February 16, 2017 TNS Plus LLP January 24, 2017 January 25, 2017 TNS Plus LLP September 1, 2016 September 2, 2016 VIP Kazakhstan Holding AG July 28, 2016 August 2, 2016 Omnium Telecom Algeria S.p.A June 22, 2016 September 1, 2 and 6, 2016

RELATED PARTIES (Tables)

RELATED PARTIES (Tables)	12 Months Ended
RELATED PARTIES (Tables)	Dec. 31, 2017
RELATED PARTIES
Schedule of transactions between related parties and their affiliates	The following table provides the total amount of transactions that have been entered into with related parties and their affiliates for the years ended December 31: 2017 2016 2015 Revenue from related parties LetterOne — — Telenor Discontinued operations — Joint ventures and associates Other related parties — — Finance income from related parties — — Services from related parties LetterOne Telenor Discontinued operations — Joint ventures and associates Other related parties — — Finance costs to related parties — — The following table provides the total balance of accounts with related parties and their affiliates at the end of the relevant period: 2017 2016 Accounts receivable from related parties Telenor — Joint ventures and associates Other assets due from related parties Accounts payable to related parties LetterOne — Telenor — Joint ventures and associates
Schedule of compensation paid to key management personnel	2017 2016* 2015* Short-term employee benefits Long-term employee benefits — — Share-based payments — Termination benefits Total compensation paid to key management personnel * Comparative amounts in respect of 'Long-term employee benefits' have been revised to conform to current period disclosure. Amounts shown for 'Long-term employee benefits' include amounts paid under the LTI Plan (see below) in respect of performance during previous years. Amounts disclosed in previous years for 'Long-term employee benefits' represented total nominal values of the grants covering multiple years.
Schedule of compensation paid to key management board members	Jean-Yves Charlier Andrew Davies Group Trond Westlie Scott Dresser Group EUR US$ EUR US$ EUR US$ EUR US$ 2017 Short-term employee benefits Base salary (i) Annual incentive (ii) — — Other Long-term employee benefits — — — — — — — — Share-based payments — — — — — — Termination benefits — — — — — — Total gross remuneration 2016 Short-term employee benefits Base salary (i) — — Annual incentive (ii) — — Other — — — — Long-term employee benefits — — — — — — — — Share-based payments — — — — — — — — Termination benefits — — — — — — — — Total gross remuneration — — (i) Base salary includes holiday and/or pension allowances pursuant to the terms of an individual's employment agreement. (ii) Annual Incentive includes amounts paid under the STI Scheme (see below) in respect of performance during the previous year, except for amounts shown for Andrew Davies during 2017, which also includes amounts paid under the STI Scheme in respect of performance during the current year. (iii) Andrew Davies stepped down from the role of Group CFO, and Trond Westlie commenced duties as newly appointed Group CFO on November 9, 2017.
Schedule of compensation paid to supervisory board members	Retainer Committees Other compensation Total 2017 2016 2017 2016 2017 2016 2017 2016 Alexey M. Reznikovich In whole euros — — — — US$ equivalent — — — — Stan Chudnovsky In whole euros — — — — US$ equivalent — — — — Mikhail Fridman In whole euros — — — — US$ equivalent — — — — Gennady Gazin In whole euros US$ equivalent Andrei Gusev In whole euros — — — — US$ equivalent — — — — Gunnar Holt In whole euros — — — US$ equivalent — — — Sir Julian Horn-Smith In whole euros — — US$ equivalent — — Jørn P. Jensen In whole euros — — US$ equivalent — — Ursula Burns In whole euros — — — — US$ equivalent — — — — Guy Laurence In whole euros — — — — US$ equivalent — — — — Nils Katla In whole euros — — — — US$ equivalent — — — — Morten Karlsen Sørby In whole euros — — — — — US$ equivalent — — — — — Trond Ø Westlie In whole euros — — — — — US$ equivalent — — — — — Total (in whole euros) Total (US$ equivalent)

RISKS, COMMITMENTS, CONTINGEN62

RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES (Tables)	12 Months Ended
	Dec. 31, 2017
RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES
Schedule of capital commitments for the future purchase of equipment and intangible assets	2017 2016 Property and equipment Less than 1 year Between 1 and 5 years Intangible assets Less than 1 year Between 1 and 5 years Total commitments
Schedule of operating lease commitments	2017 2016 Less than 1 year Between 1 and 5 years More than 5 years Total commitments

GENERAL INFORMATION - Sharehold

GENERAL INFORMATION - Shareholders and free float (Details)	Dec. 31, 2017shares	Mar. 29, 2016shares
General information
Total outstanding common shares	1,756,731,135
Percentage of common and voting shares	100.00%
Free Float	513,454,732
Free Float (in percentage)	0.292
Shares held by the Company or its subsidiaries ("Treasury shares")	7,603,731
Shares held by Company or its subsidiaries ("Treasury shares") (in percentage)	0.40%
L1T VIP Holdings S.a r.l. ("LetterOne")
General information
Total outstanding common shares	840,625,001
Percentage of common and voting shares	47.90%
Telenor East Holding II AS ("Telenor")
General information
Total outstanding common shares	256,703,840
Percentage of common and voting shares	14.60%
Stichting Administratiekantoor Mobile Telecommunications Investor
General information
Total outstanding common shares	145,947,562
Percentage of common and voting shares	8.30%
American Depositary Shares (ADS) \| Stichting Administratiekantoor Mobile Telecommunications Investor
General information
Transfer of shares between largest shareholders		145,947,562

GENERAL INFORMATION - Share sal

GENERAL INFORMATION - Share sale and transfer (Details) - shares	Sep. 30, 2017	Apr. 30, 2017
Telenor East Holding II AS ("Telenor") \| American Depositary Shares (ADS)
General information
Number of shares issued	90,000,000	70,000,000

GENERAL INFORMATION - Nature of

GENERAL INFORMATION - Nature of operations (Details) $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 05, 2017 / $
General information
Increase in total revenue due to devaluation of local currencies (as a percent)		3.00%
Net foreign exchange loss / (gain)		$ 71	$ (157)	$ 314
Foreign currency translation		(638)	$ 85	$ (1,836)
Uzbekistan
General information
Exchange rate \| / $					8,100
Exchange rate depreciations					92.00%
Net foreign exchange loss / (gain)	$ 49	16
Repatriated amount from subsidiary	$ 200
Foreign currency translation		$ 420
Italy
General information
Ownership interest in joint venture (in percentage)		50.00%

SIGNIFICANT ACCOUNTING POLICI66

SIGNIFICANT ACCOUNTING POLICIES THAT RELATE TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE (Details) - USD ($) $ in Millions	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Non-current assets
Investments in joint ventures and associates		$ 1,921	$ 2,179	$ 201	$ 265
Deferred tax assets		272	343
Other assets		199	118
Current assets
Trade and other receivables		745	685
Other assets		394	439
Equity
Equity attributable to equity owners of the parent		4,352	5,960
Non-controlling interests		(425)	83
Liabilities
Other liabilities (current)		1,346	1,236
Deferred tax liabilities		$ 376	$ 331
Impact of Adoption of IFRS 9 and IFRS 15 \| Opening balance sheet
Non-current assets
Investments in joint ventures and associates	$ 1,921
Deferred tax assets	272
Available for sale	18
Other assets	199
Current assets
Trade and other receivables	745
Available for sale	53
Other assets	394
Equity
Equity attributable to equity owners of the parent	4,352
Non-controlling interests	(425)
Liabilities
Other liabilities (current)	1,346
Deferred tax liabilities	376
Proforma Adjustment \| Impact of Adoption of IFRS 9 and IFRS 15
Non-current assets
Investments in joint ventures and associates	1,926
Deferred tax assets	264
Fair value through other comprehensive income	18
Other assets	292
Current assets
Trade and other receivables	727
Fair value through other comprehensive income	53
Other assets	386
Equity
Equity attributable to equity owners of the parent	4,394
Non-controlling interests	(416)
Liabilities
Other liabilities (current)	1,345
Deferred tax liabilities	390
Proforma Adjustment \| Impact of Adoption of IFRS 9 and IFRS 15 \| Impact of IFRS 9 - Classification and measurement
Non-current assets
Investments in joint ventures and associates	(25)
Available for sale	(18)
Fair value through other comprehensive income	18
Current assets
Available for sale	(53)
Fair value through other comprehensive income	53
Equity
Equity attributable to equity owners of the parent	(25)
Proforma Adjustment \| Impact of Adoption of IFRS 9 and IFRS 15 \| Impact of IFRS 9 - Impairment
Non-current assets
Investments in joint ventures and associates	(10)
Deferred tax assets	4
Current assets
Trade and other receivables	(18)
Equity
Equity attributable to equity owners of the parent	(18)
Non-controlling interests	(5)
Liabilities
Deferred tax liabilities	(1)
Proforma Adjustment \| Impact of Adoption of IFRS 9 and IFRS 15 \| Impact of IFRS 15 - Revenue and contract costs
Non-current assets
Investments in joint ventures and associates	40
Deferred tax assets	(12)
Other assets	93
Current assets
Other assets	(8)
Equity
Equity attributable to equity owners of the parent	85
Non-controlling interests	14
Liabilities
Other liabilities (current)	(1)
Deferred tax liabilities	$ 15

FINANCIAL RISK MANAGEMENT - Int

FINANCIAL RISK MANAGEMENT - Interest rate risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
INTEREST RATE RISK
FINANCIAL RISK MANAGEMENT
Percent of borrowings that are at a fixed rate of interest	80.00%	81.00%
Interest rate appreciation risk
FINANCIAL RISK MANAGEMENT
Percentage of change in significant exposure used for sensitivity analysis	100.00%	100.00%
Interest rate depreciation risk
FINANCIAL RISK MANAGEMENT
Percentage of change in significant exposure used for sensitivity analysis	100.00%	100.00%
Euro \| Interest rate appreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	$ (7)
Effect on other comprehensive income	23
Euro \| Interest rate depreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	7
Effect on other comprehensive income	(24)
Algerian Dinar \| Interest rate appreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax		$ (1)
Algerian Dinar \| Interest rate depreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax		1
Uzbek Som \| Interest rate appreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	3	7
Effect on other comprehensive income	(20)
Uzbek Som \| Interest rate depreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	(3)	(7)
Effect on other comprehensive income	21
Pakistani Rupee \| Interest rate appreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	(3)
Effect on other comprehensive income	1	2
Pakistani Rupee \| Interest rate depreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	3
Effect on other comprehensive income	(1)	(2)
Ukrainian Hryvnia \| Interest rate appreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	2	1
Ukrainian Hryvnia \| Interest rate depreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	(2)	(1)
Other currencies \| Interest rate appreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	4	2
Other currencies \| Interest rate depreciation risk
FINANCIAL RISK MANAGEMENT
Effect on profit / (loss) before tax	$ (4)	$ (2)

FINANCIAL RISK MANAGEMENT - For

FINANCIAL RISK MANAGEMENT - Foreign currency risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Risk of exchange rate depreciation
Foreign currency sensitivity
Change in foreign exchange rate against US$	10.00%	10.00%
Risk of exchange rate appreciation
Foreign currency sensitivity
Change in foreign exchange rate against US$	10.00%	10.00%
Euro \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	$ (18)	$ (9)
Effect on other comprehensive income	132
Euro \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	20	10
Effect on other comprehensive income	(145)
Pakistani Rupee \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	(27)	(30)
Pakistani Rupee \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	30	33
Algerian Dinar \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	(3)	(3)
Algerian Dinar \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	3	4
Uzbek Som \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	(12)	(4)
Effect on other comprehensive income		(27)
Uzbek Som \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	13	4
Effect on other comprehensive income		30
RUB \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	44	(80)
Effect on other comprehensive income		30
RUB \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	(48)	84
Effect on other comprehensive income		(33)
Bangladeshi Taka \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	(69)	(68)
Bangladeshi Taka \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	76	75
Kazakh Tenge \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	4	5
Kazakh Tenge \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	(5)	(5)
Georgian Lari \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	(32)	(30)
Georgian Lari \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	35	33
Armenian dram \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	0	18
Armenian dram \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	1	(20)
Other currencies \| Risk of exchange rate depreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	0	(5)
Other currencies \| Risk of exchange rate appreciation
Foreign currency sensitivity
Effect on profit / (loss) before tax	$ 0	$ 5

FINANCIAL RISK MANAGEMENT - Liq

FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) ₽ in Millions, € in Millions, ₨ in Millions, ৳ in Millions, دج in Millions, ¥ in Millions, $ in Millions

Jan. 25, 2018USD ($)

Dec. 26, 2017BDT (৳)tranche

Feb. 16, 2017USD ($)item

Dec. 31, 2017BDT (৳)

Dec. 31, 2017RUB (₽)

Dec. 31, 2017PKR (₨)

Dec. 31, 2017USD ($)

Dec. 26, 2017USD ($)tranche

Jun. 30, 2017EUR (€)

Dec. 31, 2016DZD (دج)

Dec. 31, 2016CNY (¥)

Dec. 31, 2016RUB (₽)

Dec. 31, 2016USD ($)

LIQUIDITY RISK

Available facilities

Percentage of debt that will mature in less than one year

10.00%

27.00%

VEON Holdings B.V. - Revolving Credit Facility

Available facilities

Facility amount

$ 1,585.5

$ 1,688

Utilized

250

Available

1,438

Reduced facility amount

1,586

Debt instrument term

3 years

Number of one year extensions | item

Extension period

1 year

Extension confirmed commitment

$ 1,586

VEON Holdings B.V. - Term Loan Facility

Available facilities

Facility amount

$ 562.5

₽ 45,000

781

Utilized

30,000

520

€ 527

Available

₽ 15,000

261

Debt instrument term

5 years

Banglalink Digital Communications Ltd. - Syndicated Term Loan Facility

Available facilities

Facility amount

৳ 29,300

353

$ 353

Available

৳ 29,300

353

Number of tranches | tranche

Increased facility amount | ৳

৳ 40,000

Banglalink Digital Communications Ltd. - Syndicated Term Loan Facility tranche one

Available facilities

Facility amount

৳ 10,700

$ 129

Debt instrument term

3 years

Banglalink Digital Communications Ltd. - Syndicated Term Loan Facility tranche two

Available facilities

Facility amount

৳ 18,600

$ 224

Debt instrument term

5 years

Pakistan Mobile Communications Limited - Syndicated Term Loan Facility

Available facilities

Facility amount

₨ 26,750

242

Utilized

17,000

154

Available

9,750

Pakistan Mobile Communications Limited - Term Loan Facility

Available facilities

Facility amount

10,000

Utilized

5,000

Available

₨ 5,000

$ 45

VEON Amsterdam B.V.-Revolving Credit Facility

Available facilities

Facility amount

$ 1,800

Available

1,800

VEON Holdings B.V.-Vendor Financing Facility China Development Bank

Available facilities

Facility amount

¥ 700

101

Utilized

149

Available

¥ 551

PJSC VimpelCom-Revolving Credit Facility Sberbank

Available facilities

Facility amount

₽ 15,000

247

Available

₽ 15,000

247

Optimum Telecom Algerie SpA-Term Loan Facility

Available facilities

Facility amount

دج 32,000

290

Available

دج 32,000

$ 290

Multi-currency term and revolving facilities

Available facilities

Facility amount

$ 2,250

FINANCIAL RISK MANAGEMENT - L70

FINANCIAL RISK MANAGEMENT - Liquidity risk maturity profile (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	$ 15,639	$ 14,907
Related derivative financial instruments assets (inflows) outflows	(5)	(2)
Total financial liabilities net of derivative assets	15,634	14,905
Bank loans and bonds
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	13,735	12,754
Derivatives - gross cash inflows
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	(98)	(451)
Derivatives - gross cash outflows
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	107	497
Trade and other payables
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	1,523
Trade and other payables and dividend payables
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)		1,744
Other financial liabilities
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	62	73
Warid non-controlling interest put option liability
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	310	290
Derivatives - gross cash inflows
Maturity profile of the Group's financial liabilities
Related derivative financial instruments assets (inflows) outflows	(275)	(29)
Derivatives - gross cash outflows
Maturity profile of the Group's financial liabilities
Related derivative financial instruments assets (inflows) outflows	270	27
Less than 1 year
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	3,377	5,346
Related derivative financial instruments assets (inflows) outflows	(5)	(2)
Total financial liabilities net of derivative assets	3,372	5,344
Less than 1 year \| Bank loans and bonds
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	1,862	3,529
Less than 1 year \| Derivatives - gross cash inflows
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	(37)	(451)
Less than 1 year \| Derivatives - gross cash outflows
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	29	495
Less than 1 year \| Trade and other payables
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	1,523
Less than 1 year \| Trade and other payables and dividend payables
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)		1,744
Less than 1 year \| Other financial liabilities
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)		29
Less than 1 year \| Derivatives - gross cash inflows
Maturity profile of the Group's financial liabilities
Related derivative financial instruments assets (inflows) outflows	(275)	(29)
Less than 1 year \| Derivatives - gross cash outflows
Maturity profile of the Group's financial liabilities
Related derivative financial instruments assets (inflows) outflows	270	27
Between 1 and 3 years
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	4,491	3,943
Total financial liabilities net of derivative assets	4,491	3,943
Between 1 and 3 years \| Bank loans and bonds
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	4,141	3,897
Between 1 and 3 years \| Derivatives - gross cash inflows
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	(49)
Between 1 and 3 years \| Derivatives - gross cash outflows
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	27	2
Between 1 and 3 years \| Other financial liabilities
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	62	44
Between 1 and 3 years \| Warid non-controlling interest put option liability
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	310
Between 3 and 5 years
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	4,997	2,308
Total financial liabilities net of derivative assets	4,997	2,308
Between 3 and 5 years \| Bank loans and bonds
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	4,958	2,018
Between 3 and 5 years \| Derivatives - gross cash inflows
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	(12)
Between 3 and 5 years \| Derivatives - gross cash outflows
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	51
Between 3 and 5 years \| Warid non-controlling interest put option liability
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)		290
More than 5 years
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	2,774	3,310
Total financial liabilities net of derivative assets	2,774	3,310
More than 5 years \| Bank loans and bonds
Maturity profile of the Group's financial liabilities
Financial liabilities, undiscounted cash flows (inflows)	$ 2,774	$ 3,310

FINANCIAL RISK MANAGEMENT - Cap

FINANCIAL RISK MANAGEMENT - Capital management (Details)	12 Months Ended
FINANCIAL RISK MANAGEMENT - Capital management (Details)	Dec. 31, 2017
CAPITAL MANAGEMENT \| Maximum
CAPITAL MANAGEMENT
Required net debt to adjusted EBITDA	3.5

SIGNIFICANT TRANSACTIONS - Towe

SIGNIFICANT TRANSACTIONS - Towers in Pakistan classified as held-for-sale (Details) $ in Millions	Aug. 30, 2017USD ($)item	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Assets and liabilities classified as held for sale
Property and equipment		$ 6,097	$ 6,719	$ 6,239
Goodwill		4,394	4,696	$ 4,223
Deferred tax assets		272	343
Other non-current assets		199	118
Other current assets		394	439
Total assets		19,521	21,193
Non-current liabilities		(10,937)	(8,593)
Current liabilities		(4,607)	$ (6,557)
Deodar \| Pakistan Mobile Communications Limited \| Towers in Pakistan classified as held-for-sale
Assets and liabilities classified as held for sale
Amount per agreement	$ 940
Number of towers \| item	13,000
Property and equipment		177
Goodwill		224
Deferred tax assets		64
Other non-current assets		2
Other current assets		44
Total assets		511
Non-current liabilities		(7)
Current liabilities		(28)
Total liabilities		(35)
Cumulative other comprehensive income		$ (28)

SIGNIFICANT TRANSACTIONS - Glob

SIGNIFICANT TRANSACTIONS - Global Telecom Holding S.A.E share buyback (Details) $ in Millions, ج.م. in Billions	Apr. 16, 2017shares	Feb. 21, 2017EGP (ج.م.)shares	Feb. 21, 2017USD ($)shares	Feb. 20, 2017	Dec. 31, 2017USD ($)shares	Dec. 31, 2016USD ($)
Investments in subsidiaries
Number of shares bought back					7,603,731
Loss due to increase in a parent's ownership interest in a subsidiary \| $					$ 259	$ (4)
Global Telecom Holding S.A.E
Investments in subsidiaries
Number of shares bought back		524,569,062	524,569,062
Consideration utilised for ordinary shares buy back		ج.م. 4.1	$ 259
Percentage of increase in ownership interest		5.77%	5.77%
Percentage of interest in subsidiary		57.69%	57.69%	51.92%	57.70%	51.90%
Loss due to increase in a parent's ownership interest in a subsidiary \| $			$ 12
Number of ordinary shares cancelled	524,569,062

SIGNIFICANT TRANSACTIONS - Gl74

SIGNIFICANT TRANSACTIONS - Global Telecom Holding S.A.E mandatory tender offer (Details) $ in Millions	Nov. 08, 2017ج.م. / sharesshares	Feb. 21, 2017	Feb. 20, 2017	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Investments in subsidiaries
Financial assets				$ 1,164	$ 496
Global Telecom Holding S.A.E
Investments in subsidiaries
Outstanding shares, which are not owned by VEON \| shares	1,997,639,608
Percentage of interest in subsidiary		57.69%	51.92%	57.70%	51.90%
VEON Holdings B.V.
Investments in subsidiaries
Percentage of interest in subsidiary	42.31%			100.00%	100.00%
Proposed offer price \| ج.م. / shares	ج.م. 7.90
Cash pledged as collateral \| Global Telecom Holding S.A.E
Investments in subsidiaries
Financial assets				$ 987

SIGNIFICANT TRANSACTIONS - Exit

SIGNIFICANT TRANSACTIONS - Exit from Euroset Holding B.V. Joint Venture (Details) ₽ in Millions, $ in Millions	Jul. 07, 2017RUB (₽)item	Jul. 07, 2017USD ($)item	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Investments in associates and joint ventures
Investments in joint ventures and associates			$ 1,921	$ 2,179		$ 201	$ 265
Euroset
Investments in associates and joint ventures
Ownership interest in joint venture (in percentage)			50.00%	50.00%
Investments in joint ventures and associates				$ 126		$ 199	$ 237
PJSC VimpelCom \| Euroset
Investments in associates and joint ventures
Ownership interest in joint venture (in percentage)	50.00%	50.00%
PJSC VimpelCom \| Megafon \| Euroset
Investments in associates and joint ventures
Ownership interest in joint venture (in percentage)	50.00%	50.00%
Consideration paid	₽ 1,250	$ 20
Number of retail stores rights acquired \| item	4,000	4,000
Investments in joint ventures and associates					$ 0

SIGNIFICANT TRANSACTIONS - Laos

SIGNIFICANT TRANSACTIONS - Laos operations classified as held for sale (Details) $ in Millions	Oct. 27, 2017USD ($)installment	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Assets and liabilities classified as held for sale
Property and equipment		$ 6,097	$ 6,719	$ 6,239
Intangible assets		2,168	2,257	$ 2,224
Current assets		3,875	4,550
Total assets		19,521	21,193
Non-current liabilities		(10,937)	(8,593)
Current liabilities		(4,607)	(6,557)
Non-controlling interests		425	$ (83)
VIP Lao \| VimpelCom Holdings B.V. \| Laos operations classified as held for sale
Assets and liabilities classified as held for sale
Percentage of interest in subsidiary	78.00%
Amount per agreement	$ 22
Number of installments for purchase consideration receivable \| installment	2
Property and equipment		15
Intangible assets		2
Current assets		5
Total assets		22
Non-current liabilities		(5)
Current liabilities		(10)
Total liabilities		(15)
Cumulative other comprehensive income		0
Non-controlling interests		$ (5)

SIGNIFICANT TRANSACTIONS - Join

SIGNIFICANT TRANSACTIONS - Joint Ventures (Details) € in Millions, $ in Millions	Nov. 05, 2016USD ($)	Aug. 06, 2015	Dec. 31, 2017	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Nov. 05, 2016EUR (€)	Nov. 05, 2016USD ($)
Effect of the disposal of Italy
Gain on disposal of discontinued operations, net of tax				$ 1,788
Financial information related to discontinued operations
Profit after tax for the period from discontinued operations				920	$ 262
Italy Disposal
Key assumptions used in the discounted cash flow model
Discount rate (functional currency)	6.90%
Average annual revenue growth rate during forecast period (functional currency)	(2.30%)
Terminal growth rate	0.50%
Average operating (EBITDA) margin during forecast period	35.70%
Average capital expenditure as a percentage of revenue	21.00%
Effect of the disposal of Italy
Fair value of investment in joint venture							$ 2,113
Cash consideration receivable							28
Total Disposal Consideration	$ 2,141
Derecognition of assets classified as held for sale	(15,974)
Derecognition of liabilities classified as held for sale	15,414
Release cumulative other comprehensive income related to Italy	207
Gain on disposal of discontinued operations, net of tax	$ 1,788
Financial information related to discontinued operations
Total operating revenues				4,135	4,913
Total operating expenses				(2,556)	(3,765)
Operating profit				1,579	1,148
Other (expenses) / income				(217)	(722)
Profit / (loss) before tax				1,362	426
Income tax (expense) / benefit				(442)	(164)
Profit after tax for the period from discontinued operations				$ 920	$ 262
HET
Joint Venture in Italy
Percentage of interest in subsidiary		100.00%
Italy Joint Venture
Joint Venture in Italy
Ownership interest in joint venture (in percentage)	50.00%		50.00%	50.00%
Effect of the disposal of Italy
Fair value of investment in joint venture						€ 1,897	$ 2,113

SIGNIFICANT TRANSACTIONS - Acqu

SIGNIFICANT TRANSACTIONS - Acquisition in Pakistan (Details) $ in Millions	Jul. 01, 2016USD ($)EquityInstruments	Dec. 31, 2016USD ($)
Warid
Acquisitions
Percentage of interests acquired	100.00%
Non-current assets
Property and equipment	$ 199
Intangible assets	201
Deferred tax assets	308
Other financial assets	2
Current assets
Inventories	1
Trade and other receivables	26
Other non-financial assets	23
Current income tax assets	17
Cash and cash equivalents recognised as of acquisition date	7
Non-current liabilities
Financial liabilities	(402)
Provisions	(6)
Other non-financial liabilities	(15)
Current liabilities
Trade and other payables	(113)
Other non-financial liabilities	(83)
Other financial liabilities	(45)
Total identifiable net assets at fair value	120
Total consideration transferred, acquisition-date fair value	321
Goodwill resulting from the acquisition	201
Shares issued by PMCL	274
Contingent consideration liability	47
Analysis of cash flows on acquisition
Net cash acquired with the subsidiary (included in cash flows from investing activities)	7
Net cash flow on acquisition	7
Period adjustments to the provisional fair values of the assets acquired, liabilities assumed and consideration to date	0
Trade and other receivables, gross	33
Trade and other receivables, expected not to be collected	7
Revenue contributed since date of acquisition	161
Loss contributed since date of acquisition	6
Revenue from continuing operations contributed if the combination had taken place at the beginning of the year	313
Loss before tax from continuing operations contributed if the combination had taken place at the beginning of the year	37
Change in contingent consideration	$ 0
Options exercisable period (in years)	4 years
Put-option redemption liability	$ 274
Non-controlling interest recognized	$ 0
Interest expense		$ 21
Foreign exchange loss		1
Pakistan Mobile Communications Limited
Analysis of cash flows on acquisition
Shares issued as consideration \| EquityInstruments	679,604,049
Discount rate	14.10%
Terminal growth rate	4.00%
Earn-out payment agreed period (in years)	4 years
Dividends		7
Carrying value of put-option redemption liability		$ 290
Pakistan Mobile Communications Limited \| Warid
Acquisitions
Consideration transferred (as a percent)	15.00%

SIGNIFICANT TRANSACTIONS - Ac79

SIGNIFICANT TRANSACTIONS - Acquisition of additional interest in 2Day Telecom LLP and KazEuroMobile LLP (Details) $ in Millions	Sep. 30, 2016USD ($)
2 Day Telecom LLP
Acquisition of additional interest
Percentage of interests acquired	16.00%
Proportion of ownership interest in associate	75.00%
Cash consideration	$ 7
Decrease in equity attributable to owners of parent	$ 9
KazEuroMobile LLP
Acquisition of additional interest
Percentage of interests acquired	24.00%
Proportion of ownership interest in associate	75.00%
Decrease in equity attributable to owners of parent	$ 1

SIGNIFICANT TRANSACTIONS - Sale

SIGNIFICANT TRANSACTIONS - Sale of operations in Zimbabwe (Details) - USD ($) $ in Millions	Feb. 21, 2017	Feb. 20, 2017	Nov. 30, 2016	Nov. 18, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Telecel International Limited
Significant Transactions
Amount per agreement				$ 40
Gain on sale			$ 21
Global Telecom Holding S.A.E
Significant Transactions
Percentage of interest in subsidiary	57.69%	51.92%			57.70%	51.90%
ZARNet Private Limited \| Telecel International Limited
Significant Transactions
Purchase price cash consideration				21
Cash consideration received						$ 11	$ 10
ZARNet Private Limited \| Global Telecom Netherlands B.V.
Significant Transactions
Vendor Note payable				$ 19
Agreement term				3 years
Telecel Zimbabwe (Pvt) Ltd \| Telecel International Limited
Significant Transactions
Percentage of interest in subsidiary				60.00%

EARNINGS PER SHARE - Continued

EARNINGS PER SHARE - Continued operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator:
(Loss)/profit for the period attributable to the owners of the parent	$ (483)	$ (380)	$ (917)
Denominator:
Weighted average common shares outstanding for basic earnings per share (in millions)	1,749	1,749	1,748
Effect of dilutive securities: Employee stock options (in millions)			1
Denominator for diluted earnings per share (in millions)	1,749	1,749	1,749
Basic (loss) / earnings per share	$ (0.28)	$ (0.22)	$ (0.52)
Diluted (loss) / earnings per share	$ (0.28)	$ (0.22)	$ (0.52)

EARNINGS PER SHARE - Discontinu

EARNINGS PER SHARE - Discontinued operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator:
(Loss)/profit for the period attributable to the owners of the parent		$ 2,708	$ 262
Denominator:
Weighted average common shares outstanding for basic earnings per share (in millions)	1,749	1,749	1,748
Effect of dilutive securities: Employee stock options (in millions)			1
Denominator for diluted earnings per share (in millions)	1,749	1,749	1,749
Basic (loss) / earnings per share	$ 0	$ 1.55	$ 0.15
Diluted (loss) / earnings per share	$ 0	$ 1.55	$ 0.15

SEGMENT INFORMATION - Reportabl

SEGMENT INFORMATION - Reportable Segments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
SEGMENT INFORMATION
Operating revenue	$ 9,474	$ 8,885	$ 9,606
Adjusted EBITDA	3,587	3,232	2,875
Capital expenditures	1,791	1,741	2,034
Reportable segments
SEGMENT INFORMATION
Operating revenue	9,474	8,885	9,606
Russia
SEGMENT INFORMATION
Operating revenue	4,729	4,097	4,583
Adjusted EBITDA	1,788	1,574	1,825
Capital expenditures	686	663	910
Russia \| Reportable segments
SEGMENT INFORMATION
Operating revenue	4,698	4,059	4,528
Russia \| Inter-segment
SEGMENT INFORMATION
Operating revenue	31	38	55
Pakistan
SEGMENT INFORMATION
Operating revenue	1,525	1,295	1,014
Adjusted EBITDA	703	507	409
Capital expenditures	535	215	238
Pakistan \| Reportable segments
SEGMENT INFORMATION
Operating revenue	1,525	1,293	1,014
Pakistan \| Inter-segment
SEGMENT INFORMATION
Operating revenue		2
Algeria
SEGMENT INFORMATION
Operating revenue	915	1,040	1,273
Adjusted EBITDA	426	547	684
Capital expenditures	129	201	189
Algeria \| Reportable segments
SEGMENT INFORMATION
Operating revenue	914	1,040	1,273
Algeria \| Inter-segment
SEGMENT INFORMATION
Operating revenue	1
Bangladesh
SEGMENT INFORMATION
Operating revenue	574	621	604
Adjusted EBITDA	233	267	242
Capital expenditures	101	137	134
Bangladesh \| Reportable segments
SEGMENT INFORMATION
Operating revenue	574	621	604
Ukraine
SEGMENT INFORMATION
Operating revenue	622	586	622
Adjusted EBITDA	347	306	292
Capital expenditures	114	106	299
Ukraine \| Reportable segments
SEGMENT INFORMATION
Operating revenue	600	566	592
Ukraine \| Inter-segment
SEGMENT INFORMATION
Operating revenue	22	20	30
Uzbekistan
SEGMENT INFORMATION
Operating revenue	513	663	711
Adjusted EBITDA	261	395	437
Capital expenditures	63	174	55
Uzbekistan \| Reportable segments
SEGMENT INFORMATION
Operating revenue	513	662	710
Uzbekistan \| Inter-segment
SEGMENT INFORMATION
Operating revenue		1	1
HQ
SEGMENT INFORMATION
Operating revenue		10
Adjusted EBITDA	(325)	(421)	(1,291)
Capital expenditures	28	27	16
HQ \| Reportable segments
SEGMENT INFORMATION
Operating revenue		10
Other
SEGMENT INFORMATION
Operating revenue	596	573	799
Adjusted EBITDA	154	57	277
Capital expenditures	135	218	193
Other \| Reportable segments
SEGMENT INFORMATION
Operating revenue	650	634	885
Other \| Inter-segment
SEGMENT INFORMATION
Operating revenue	$ (54)	$ (61)	$ (86)

SEGMENT INFORMATION - Segments

SEGMENT INFORMATION - Segments Adjusted EBITDA (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue
Total Segments Adjusted EBITDA	$ 3,587	$ 3,232	$ 2,875
Depreciation	(1,454)	(1,439)	(1,550)
Amortization	(537)	(497)	(517)
Impairment Loss	(66)	(192)	(245)
Loss on disposals of non-current assets	(24)	(20)	(39)
Finance costs	(935)	(830)	(829)
Finance income	95	69	52
Other non-operating losses, net	(97)	(82)	(42)
Share of (loss) / profit of joint ventures and associates	(412)	48	14
Impairment of joint ventures and associates	(110)	(99)
Net foreign exchange (loss) / gain	(71)	157	(314)
(Loss) / profit before tax	$ (24)	$ 347	$ (595)

SEGMENT INFORMATION - Geographi

SEGMENT INFORMATION - Geographical information of non-current assets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Geographical information of non-current assets
Non-current assets	$ 15,113	$ 16,643
Russia
Geographical information of non-current assets
Non-current assets	5,969	6,116
Pakistan
Geographical information of non-current assets
Non-current assets	1,840	2,169
Algeria
Geographical information of non-current assets
Non-current assets	2,151	2,324
Bangladesh
Geographical information of non-current assets
Non-current assets	988	1,104
Ukraine
Geographical information of non-current assets
Non-current assets	552	556
Uzbekistan
Geographical information of non-current assets
Non-current assets	213	509
HQ
Geographical information of non-current assets
Non-current assets	55	38
Other
Geographical information of non-current assets
Non-current assets	$ 3,345	$ 3,827

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Millions	12 Months Ended
REVENUE (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
REVENUE
Mobile services	$ 8,688	$ 8,089	$ 8,797
Fixed line services	786	796	809
Total operating revenues	$ 9,474	8,885	$ 9,606
Decrease in service revenue and service costs for comparison purposes		$ 19

SELLING, GENERAL AND ADMINIST87

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Network and IT costs	$ 1,185	$ 1,043	$ 1,017
Personnel costs	927	775	848
Customer associated costs	893	822	860
Losses on receivables	59	58	51
Taxes, other than income taxes	219	244	227
Other	465	726	1,560
Total selling, general and administrative expenses	3,748	3,668	4,563
Reduction in selling, general and administrative expense	106
Operating lease expense	$ 444	$ 408	$ 385

IMPAIRMENT (Details)

IMPAIRMENT (Details) - USD ($) $ in Millions	12 Months Ended
IMPAIRMENT (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Impairment charge
Impairment loss	$ 66	$ 192	$ 245
Property and equipment
Impairment charge
Impairment loss	15	100	150
Intangible assets
Impairment charge
Impairment loss		14
Goodwill
Impairment charge
Impairment loss	$ 51	$ 78	$ 95

IMPAIRMENT - Carrying amount of

IMPAIRMENT - Carrying amount of goodwill and cash-generating units (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period	$ 4,696	$ 4,223
Impairment	(51)	(78)
Reclassification of Deodar as held for sale	(237)
Acquisition		201
Translation adjustment	(14)	350
Goodwill at end of period	$ 4,394	4,696
Business plans coverage period (in years)	5 years
Russia
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period	$ 2,312	1,924
Translation adjustment	122	388
Goodwill at end of period	2,434	2,312
Algeria
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period	1,393	1,435
Translation adjustment	(53)	(42)
Goodwill at end of period	1,340	1,393
Pakistan
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period	497	295
Reclassification of Deodar as held for sale	(237)
Acquisition		201
Translation adjustment	(16)	1
Goodwill at end of period	244	497
Kazakhstan
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period	176	173
Translation adjustment	1	3
Goodwill at end of period	177	176
Kyrgyzstan
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period	145	177
Impairment	(17)	(49)
Translation adjustment		17
Goodwill at end of period	128	145
Uzbekistan
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period	114	131
Translation adjustment	(68)	(17)
Goodwill at end of period	46	114
Armenia
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period	59	59
Impairment	(34)
Goodwill at end of period	$ 25	59
Tajikistan
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period		21
Impairment		(21)
Others
Carrying amount of goodwill and cash-generating units
Goodwill at beginning of period		8
Impairment		$ (8)

IMPAIRMENT - Impairment losses

IMPAIRMENT - Impairment losses (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Impairment losses
Impairment loss		$ 66	$ 192	$ 245
Impairment loss allocated to current and non-current assets			204
Additional impairment loss recorded during the period		15	30	150
Property and equipment
Impairment losses
Impairment loss		15	100	150
Impairment loss allocated to current and non-current assets			100
Intangible assets
Impairment losses
Impairment loss			14
Impairment loss allocated to current and non-current assets			14
Goodwill
Impairment losses
Impairment loss		51	78	$ 95
Impairment loss allocated to current and non-current assets			78
Other assets
Impairment losses
Impairment loss allocated to current and non-current assets			12
Armenia
Impairment losses
Impairment loss	$ 44	34
Recoverable amounts based on a fair value less costs of disposal		105
Post-tax discount rate	12.10%
Armenia \| Goodwill
Impairment losses
Impairment loss		34
Georgia
Impairment losses
Impairment loss allocated to current and non-current assets			29
Recoverable amounts based on a fair value less costs of disposal			$ 53
Post-tax discount rate			10.30%
Georgia \| Property and equipment
Impairment losses
Impairment loss allocated to current and non-current assets			$ 16
Georgia \| Intangible assets
Impairment losses
Impairment loss allocated to current and non-current assets			13
Kyrgyzstan
Impairment losses
Impairment loss		17
Impairment loss allocated to current and non-current assets			49
Recoverable amounts based on a fair value less costs of disposal		209	$ 219
Post-tax discount rate			14.50%
Kyrgyzstan \| Goodwill
Impairment losses
Impairment loss		17
Impairment loss allocated to current and non-current assets			$ 49
Tajikistan
Impairment losses
Impairment loss allocated to current and non-current assets			88
Tajikistan \| Property and equipment
Impairment losses
Impairment loss allocated to current and non-current assets			54
Tajikistan \| Intangible assets
Impairment losses
Impairment loss allocated to current and non-current assets			1
Tajikistan \| Goodwill
Impairment losses
Impairment loss allocated to current and non-current assets			21
Tajikistan \| Other assets
Impairment losses
Impairment loss allocated to current and non-current assets			$ 12
Ukraine
Impairment losses
Weighted average cost of capital	1.00%
Impairment loss	$ 51
Post-tax discount rate	17.80%
Post-tax discount rate in the period prior to the reporting period			20.40%
Post-tax discount rate in two periods prior to the reporting period				27.10%
Others
Impairment losses
Impairment loss		15
Impairment loss allocated to current and non-current assets			$ 38
Others \| Property and equipment
Impairment losses
Impairment loss		$ 15
Impairment loss allocated to current and non-current assets			30
Others \| Goodwill
Impairment losses
Impairment loss allocated to current and non-current assets			$ 8

IMPAIRMENT - Key assumptions (D

IMPAIRMENT - Key assumptions (Details)	12 Months Ended
IMPAIRMENT - Key assumptions (Details)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Key assumptions for determining the recoverable amount
Maturity period for an United States Treasury bond	20 years
Percentage of equity market risk premium	6.00%	5.50%	5.50%
Russia
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	10.60%	9.70%	11.20%
Average annual revenue growth rate during forecast period (as a percent)	1.90%	2.40%	2.40%
Terminal growth rate (as a percent)	1.00%	1.00%	1.00%
Average operating margin (as a percent)	36.40%	38.60%	44.10%
Average CAPEX as a percentage of revenue (as a percent)	15.70%	15.90%	16.50%
Ukraine
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	17.10%	17.20%	18.20%
Average annual revenue growth rate during forecast period (as a percent)	3.90%	3.60%	3.90%
Terminal growth rate (as a percent)	2.00%	1.00%	3.00%
Average operating margin (as a percent)	49.90%	44.90%	44.90%
Average CAPEX as a percentage of revenue (as a percent)	15.60%	17.00%	19.10%
Algeria
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	10.70%	9.80%	11.40%
Average annual revenue growth rate during forecast period (as a percent)	1.00%	(0.80%)	(0.90%)
Terminal growth rate (as a percent)	3.00%	3.00%	4.00%
Average operating margin (as a percent)	46.20%	50.80%	48.70%
Average CAPEX as a percentage of revenue (as a percent)	14.80%	15.80%	16.30%
Pakistan
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	15.00%	14.30%	15.70%
Average annual revenue growth rate during forecast period (as a percent)	5.00%	7.60%	4.80%
Terminal growth rate (as a percent)	4.00%	4.00%	5.00%
Average operating margin (as a percent)	43.60%	33.30%	39.20%
Average CAPEX as a percentage of revenue (as a percent)	15.30%	14.30%	14.10%
Bangladesh
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	12.70%	11.90%	13.40%
Average annual revenue growth rate during forecast period (as a percent)	5.00%	6.40%	6.50%
Terminal growth rate (as a percent)	4.60%	4.70%	5.90%
Average operating margin (as a percent)	38.70%	44.90%	41.20%
Average CAPEX as a percentage of revenue (as a percent)	14.30%	14.60%	15.80%
Kazakhstan
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	10.80%	12.40%	12.30%
Average annual revenue growth rate during forecast period (as a percent)	3.20%	4.40%	3.50%
Terminal growth rate (as a percent)	2.40%	2.00%	3.00%
Average operating margin (as a percent)	44.50%	43.60%	52.30%
Average CAPEX as a percentage of revenue (as a percent)	17.90%	18.80%	20.30%
Kyrgyzstan
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	15.50%	14.50%	14.20%
Average annual revenue growth rate during forecast period (as a percent)	(1.50%)	(1.80%)	2.40%
Terminal growth rate (as a percent)	3.50%	2.50%	2.50%
Average operating margin (as a percent)	42.00%	43.90%	54.10%
Average CAPEX as a percentage of revenue (as a percent)	16.40%	17.00%	12.30%
Uzbekistan
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	15.30%	15.40%	18.40%
Average annual revenue growth rate during forecast period (as a percent)	6.90%	1.70%	1.70%
Terminal growth rate (as a percent)	6.50%	1.00%	2.00%
Average operating margin (as a percent)	42.90%	58.20%	61.20%
Average CAPEX as a percentage of revenue (as a percent)	14.10%	18.20%	16.30%
Armenia
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	13.00%	12.00%	12.90%
Average annual revenue growth rate during forecast period (as a percent)	(1.00%)	(2.80%)	(0.70%)
Terminal growth rate (as a percent)	3.00%	1.00%	2.00%
Average operating margin (as a percent)	29.70%	37.80%	35.50%
Average CAPEX as a percentage of revenue (as a percent)	19.60%	14.10%	11.80%
Georgia
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)	11.00%	10.30%	12.60%
Average annual revenue growth rate during forecast period (as a percent)	5.60%	6.40%	6.50%
Terminal growth rate (as a percent)	1.00%	1.00%	3.00%
Average operating margin (as a percent)	25.20%	25.70%	32.20%
Average CAPEX as a percentage of revenue (as a percent)	23.30%	17.30%	16.40%
Tajikistan
Key assumptions for determining the recoverable amount
Discount rate (functional currency) (as a percent)			13.50%
Average annual revenue growth rate during forecast period (as a percent)			(4.20%)
Terminal growth rate (as a percent)			2.00%
Average operating margin (as a percent)			42.40%
Average CAPEX as a percentage of revenue (as a percent)			13.60%

IMPAIRMENT - Sensitivity to cha

IMPAIRMENT - Sensitivity to changes in assumptions (Details)	12 Months Ended
	Dec. 31, 2017item
Sensitivity to changes in assumptions
Budget and forecast period for impairment on goodwill (in years)	5 years
Bangladesh
Sensitivity to changes in assumptions
CGUs with limited headroom	82
Change in assumptions by 1%, discount rate	(33.00%)
Change in assumptions by 1%, terminal growth rate	(17.00%)
Uzbekistan
Sensitivity to changes in assumptions
CGUs with limited headroom	15
Change in assumptions by 1%, discount rate	(9.00%)
Change in assumptions by 1%, average growth rate	(3.00%)
Change in assumptions by 1%, average Capital Expenditure/Revenue	(1.00%)
Change in assumptions by 1%, terminal growth rate	(7.00%)
Georgia
Sensitivity to changes in assumptions
CGUs with limited headroom	9

OTHER NON-OPERATING LOSSES, N93

OTHER NON-OPERATING LOSSES, NET (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
OTHER NON-OPERATING LOSSES, NET
Loss from early debt redemption	$ (124)		$ 4
Change of fair value of embedded derivative	(6)	$ 12
Change of fair value of other derivatives	(13)	(120)	(15)
Impairment loss of other financial assets	(20)		(1)
Gains relating to past acquisitions and divestments	70
Other (losses) / gains	(4)	26	(30)
Other non-operating losses, net	(97)	$ (82)	$ (42)
Net gain of indemnification from a past business acquisition	45
Gain from sale of investment in subsidiaries	$ 25

INCOME TAXES - Income tax expen

INCOME TAXES - Income tax expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current income taxes
Current year	$ 397	$ 615	$ 712
Adjustments in respect of previous years	(28)	(3)	38
Total current income taxes	369	612	750
Deferred income taxes
Origination / reversal of temporary differences	(166)	(217)	(782)
Changes in tax rates	10	(7)	24
Current year tax losses unrecognized	153	172	207
Recognition / utilization of previously unrecognized tax losses or tax credits		(15)	(23)
Derecognition of previously recognized tax losses		95	32
Expiration of tax losses		2
Write off deferred tax assets	20		7
Adjustments in respect of previous years	86		6
Other		(7)	(1)
Total deferred tax expense	103	23	(530)
Income tax expense	$ 472	$ 635	$ 220

INCOME TAXES - Reconciliation b

INCOME TAXES - Reconciliation between statutory and effective income tax (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective income tax rate reconciliation, difference due to tax effects
Netherlands corporate tax rate	25.00%	25.00%	25.00%
(Loss) / profit before tax from continued operations	$ (24)	$ 347	$ (595)
Income tax benefit at statutory tax rate (25.0%)	(6)	87	(148)
Different tax rates in different jurisdictions	(90)	152	(76)
Non-deductible expenses	216	89	320
Non-taxable income	(35)	(81)	(11)
Adjustments in respect of previous years	52	(3)	44
Movement in (un)recognized deferred tax assets	173	247	230
Withholding taxes	123	62	(179)
Tax claims	25	59	5
Change in income tax rate	10	(7)	28
Minimum taxes and other	4	30	7
Income tax expense	$ 472	$ 635	$ 220
Effective tax rate	(1966.70%)	183.00%	(37.00%)

INCOME TAXES - Explanatory note

INCOME TAXES - Explanatory notes to effective tax rate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income taxes
Effective tax rate	(1966.70%)	183.00%	(37.00%)
Applicable tax rate	25.00%	25.00%	25.00%
Non-deductible expenses	$ 216	$ 89	$ 320
Tax effect related to indemnification from a past business acquisition	17
Tax effect of change in recognition of deferred tax assets	173	247	230
Tax expense (benefit) from change in withholding taxes	123	62	(179)
Unused tax losses for which deferred tax asset recognised	322	411
Unused tax losses for which no deferred tax asset recognised	1,192	1,270
Deferred tax expense arising from write-down or reversal of write-down of deferred tax asset	20		7
Release of accrued withholding taxes for capital gain taxes and distributed dividends			59
Accrued for withholding taxes on future distributions resulting in a net impact	59
Net impact on income tax expense due to uncertain income tax positions	24
Tax effect of adjustments for current tax of prior periods	52	(3)	44
Tax expense (benefit) from change in tax rate	10	(7)	$ 28
Wind Telecom S.p.A.
Income taxes
Unused tax losses for which deferred tax asset recognised		95
Global Telecom Holding S.A.E
Income taxes
Non-deductible expenses	20	24
Unused tax losses for which no deferred tax asset recognised	35
Other subsidiaries
Income taxes
Unused tax losses for which no deferred tax asset recognised	$ 10
Italy Joint Venture
Income taxes
Deferred tax expense arising from write-down or reversal of write-down of deferred tax asset		$ 95
Uzbekistan
Income taxes
Effective tax rate		53.00%	7.50%
Non-deductible expenses			$ 199
Pakistan
Income taxes
Effective tax rate	30.00%	31.00%	32.00%
Non-deductible expenses		$ 20
Tax expense (benefit) from change in tax rate	$ 9
Tajikistan
Income taxes
Non-deductible expenses		18
Russia
Income taxes
Non-deductible expenses	91
Tax expense (benefit) from change in withholding taxes	53	25	$ (61)
Amount due on withholding taxes as result of dividend to be paid	1,060	500
Netherlands
Income taxes
Unused tax losses for which no deferred tax asset recognised	109
Bangladesh
Income taxes
Unused tax losses for which deferred tax asset recognised		21
Georgia
Income taxes
Unused tax losses for which no deferred tax asset recognised			220
Luxembourg
Income taxes
Non-deductible expenses	96
Deferred tax expense arising from write-down or reversal of write-down of deferred tax asset	20
Adjustment in carry forward losses arising due to filing to annual tax return		$ 3
Bangladesh and Russia
Income taxes
Tax effect of adjustments for current tax of prior periods	$ 58
Algeria
Income taxes
Tax expense (benefit) from change in tax rate			$ 24

INCOME TAXES - Deferred taxes (

INCOME TAXES - Deferred taxes (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets and liabilities
Deferred tax assets	$ 272	$ 343
Deferred tax liabilities	(376)	(331)
Net deferred tax assets		$ 12
Net deferred tax liabilities	$ (104)		$ (254)

INCOME TAXES - Deferred tax ass

INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income taxes
Opening balance - assets	$ 12
Opening balance - liabilities		$ (254)
Net income statement movement	(103)	(23)
Changes in composition of the group		306
Other comprehensive income and other	36	4
Currency translation	(49)	(21)
Ending balance - assets		12
Ending balance - liabilities	(104)
Total Deferred tax assets and liabilities before adjustments
Income taxes
Opening balance - liabilities	(409)	(590)
Net income statement movement	(56)	82
Changes in composition of the group		73
Other comprehensive income and other	(30)	62
Currency translation	1	(37)
Ending balance - liabilities	(494)	(409)
Property and equipment
Income taxes
Opening balance - liabilities	(420)	(499)
Net income statement movement	(6)	32
Changes in composition of the group		74
Other comprehensive income and other	(13)	26
Currency translation	(4)	(54)
Tax rate changes		1
Ending balance - liabilities	(443)	(420)
Intangible assets
Income taxes
Opening balance - liabilities	(166)	(228)
Net income statement movement		32
Changes in composition of the group		(3)
Other comprehensive income and other	(4)	37
Currency translation	5	(3)
Tax rate changes		(1)
Ending balance - liabilities	(165)	(166)
Trade receivables
Income taxes
Opening balance - assets	30	21
Net income statement movement	19	13
Other comprehensive income and other	(4)	(1)
Currency translation	(9)	(3)
Ending balance - assets	36	30
Other assets
Income taxes
Opening balance - liabilities	(3)	(5)
Net income statement movement	(12)	3
Other comprehensive income and other	1
Currency translation	6	(1)
Ending balance - liabilities	(8)	(3)
Provisions
Income taxes
Opening balance - assets	29	23
Net income statement movement	3	3
Changes in composition of the group		3
Other comprehensive income and other	(3)	(1)
Currency translation	4	1
Ending balance - assets	33	29
Long-term debt
Income taxes
Opening balance - assets	25	9
Net income statement movement	(6)	9
Other comprehensive income and other	(7)	(1)
Currency translation	1	8
Ending balance - assets	13	25
Accounts payable
Income taxes
Opening balance - assets	94	71
Net income statement movement	38	8
Other comprehensive income and other	28	1
Currency translation	(27)	14
Ending balance - assets	133	94
Other liabilities
Income taxes
Opening balance - assets	53	45
Net income statement movement	(27)	7
Changes in composition of the group		1
Other comprehensive income and other	(33)	(2)
Currency translation	30	2
Ending balance - assets	23	53
Other movements and temporary differences
Income taxes
Opening balance - assets	23	20
Net income statement movement	(24)
Other comprehensive income and other		1
Currency translation		1
Ending balance - assets		23
Ending balance - liabilities	(1)
Deferred subnational income taxes and other
Income taxes
Opening balance - liabilities	(1)	(2)
Net income statement movement	2	1
Changes in composition of the group		(2)
Other comprehensive income and other	4	2
Currency translation	(4)
Ending balance - assets	1
Ending balance - liabilities		(1)
Withholding tax on undistributed earnings
Income taxes
Opening balance - liabilities	(73)	(45)
Net income statement movement	(43)	(26)
Other comprehensive income and other	1
Currency translation	(1)	(2)
Ending balance - liabilities	(116)	(73)
Tax losses and other balances carry forwards
Income taxes
Opening balance - assets	2,270	2,613
Net income statement movement	(47)	(89)
Changes in composition of the group		233
Other comprehensive income and other	197	(14)
Currency translation	(50)	(298)
Tax rate changes		(174)
Ending balance - assets	2,370	2,270
Non recognized deferred tax assets on losses and credits
Income taxes
Opening balance - liabilities	(1,822)	(2,263)
Other comprehensive income and other	(158)	(44)
Currency translation		311
Tax rate changes		174
Ending balance - liabilities	(1,980)	(1,822)
Non recognized deferred tax assets on temporary differences
Income taxes
Opening balance - liabilities	(27)	(14)
Net income statement movement		(16)
Other comprehensive income and other	$ 27
Currency translation		3
Ending balance - liabilities		(27)
Georgia
Income taxes
Amount of deductible temporary differences for which no deferred tax asset is recognized amounts		27
Wind Telecom S.p.A. \| Non recognized deferred tax assets on losses and credits
Income taxes
Other comprehensive income and other		$ 3

INCOME TAXES - Tax losses year

INCOME TAXES - Tax losses year of expiration (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Income taxes
Recognized losses	$ (1,192)	$ (1,270)
Recognized DTA	322	411
Non-recognized losses	(9,455)	(8,301)
Non-recognized DTA	1,987	1,777
0 - 5 years
Income taxes
Recognized losses	(347)	(47)
Recognized DTA	85
Non-recognized losses	(420)	(1,016)
Non-recognized DTA	95	237
6 - 10 years
Income taxes
Recognized losses	(12)
Recognized DTA	3	9
Non-recognized losses	(2,639)	(2,148)
Non-recognized DTA	660	537
Indefinite
Income taxes
Recognized losses	(833)	(1,223)
Recognized DTA	234	402
Non-recognized losses	(6,396)	(5,137)
Non-recognized DTA	1,232	1,003
Luxembourg and Netherlands
Income taxes
Recognized DTA	28	80
Luxembourg
Income taxes
Non-recognized losses	6,532	(5,126)
Netherlands
Income taxes
Recognized losses	(109)
Non-recognized losses	$ 2,474	$ (2,148)

INCOME TAXES - Other credit car

INCOME TAXES - Other credit carryforwards (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Income taxes
Recognized credits	$ (68)	$ (37)
Recognized DTA	68	37
Non-recognised other carry forwards		(187)
Non-recognized DTA		45
0 - 5 years
Income taxes
Recognized credits	(68)	(37)
Recognized DTA	$ 68	37
Indefinite
Income taxes
Non-recognised other carry forwards		(187)
Non-recognized DTA		$ 45

INCOME TAXES - Foreign subsidia

INCOME TAXES - Foreign subsidiaries, outside income statement and non-current tax assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income taxes
Deferred tax liability	$ 376	$ 331
Current and deferred taxes			$ 348
Current tax charge	6		345
Deferred tax (charge) benefit	102		(3)
Capital gain tax			428
Current tax charge recognized directly in equity			350
Deferred tax charge related to cash flow hedge movements recognized directly in equity	0	5	$ 5
Current and non-current income tax assets	258	194
Russian, Algerian and Pakistan
Income taxes
Deferred tax liability	116	73
Foreign subsidiaries outside Netherlands
Income taxes
Undistributed earnings of VEON's foreign subsidiaries	6,833	$ 8,495
Deferred tax liability	$ 0

INVESTMENTS IN SUBSIDIARIES - I

INVESTMENTS IN SUBSIDIARIES - Information about significant subsidiaries (Details)	Nov. 08, 2017	Feb. 21, 2017	Feb. 20, 2017	Dec. 31, 2017	Dec. 31, 2016
VEON Amsterdam B.V.
Investments in subsidiaries
Ownership held by the Group				100.00%	100.00%
VEON Holdings B.V.
Investments in subsidiaries
Ownership held by the Group	42.31%			100.00%	100.00%
PJSC VimpelCom
Investments in subsidiaries
Ownership held by the Group				100.00%	100.00%
JSC "Kyivstar"
Investments in subsidiaries
Ownership held by the Group				100.00%	100.00%
LLP "KaR-Tel"
Investments in subsidiaries
Ownership held by the Group				75.00%	75.00%
LLC "Tacom"
Investments in subsidiaries
Ownership held by the Group				98.00%	98.00%
LLC "Unitel"
Investments in subsidiaries
Ownership held by the Group				100.00%	100.00%
LLC "VEON Georgia"
Investments in subsidiaries
Ownership held by the Group				80.00%	80.00%
CJSC "VEON Armenia"
Investments in subsidiaries
Ownership held by the Group				100.00%	100.00%
LLC "Sky Mobile"
Investments in subsidiaries
Ownership held by the Group				50.10%	50.10%
VimpelCom Lao Co. Ltd.
Investments in subsidiaries
Ownership held by the Group				78.00%	78.00%
VEON Luxembourg Holdings S.a r.l.
Investments in subsidiaries
Ownership held by the Group				100.00%	100.00%
VEON Luxembourg Finance Holdings S.a r.l.
Investments in subsidiaries
Ownership held by the Group				100.00%	100.00%
VEON Luxembourg Finance S.A.
Investments in subsidiaries
Ownership held by the Group				100.00%	100.00%
Global Telecom Holding S.A.E
Investments in subsidiaries
Ownership held by the Group		57.69%	51.92%	57.70%	51.90%
Omnium Telecom Algerie S.p.A
Investments in subsidiaries
Ownership held by the Group				26.30%	23.70%
Optimum Telecom Algeria S.p.A.
Investments in subsidiaries
Ownership held by the Group				26.30%	23.70%
Pakistan Mobile Communications Limited
Investments in subsidiaries
Ownership held by the Group				49.00%	44.00%
Banglalink Digital Communications Limited
Investments in subsidiaries
Ownership held by the Group				57.70%	51.90%
Wind Telecom S.p.A.
Investments in subsidiaries
Ownership held by the Group					100.00%

INVESTMENTS IN SUBSIDIARIES - E

INVESTMENTS IN SUBSIDIARIES - Equity interest held by NCIs (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
LLP "KaR-Tel"
Investments in subsidiaries
Equity interest held by NCIs (in percentage)	25.00%	25.00%
LLC "Sky Mobile"
Investments in subsidiaries
Equity interest held by NCIs (in percentage)	49.80%	49.80%
Global Telecom Holding S.A.E
Investments in subsidiaries
Equity interest held by NCIs (in percentage)	42.30%	48.10%
Omnium Telecom Algerie S.p.A
Investments in subsidiaries
Equity interest held by NCIs (in percentage)	73.70%	76.30%
Algeria \| Omnium Telecom Algerie S.p.A
Investments in subsidiaries
Equity interest held by NCIs (in percentage)		54.40%

INVESTMENTS IN SUBSIDIARIES - B

INVESTMENTS IN SUBSIDIARIES - Book values of material NCIs (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
LLP "KaR-Tel"
Investments in subsidiaries
Book values of material NCIs	$ 252	$ 253
LLC "Sky Mobile"
Investments in subsidiaries
Book values of material NCIs	167	164
Global Telecom Holding S.A.E
Investments in subsidiaries
Book values of material NCIs	(778)	(219)
Omnium Telecom Algerie S.p.A
Investments in subsidiaries
Book values of material NCIs	$ 1,235	$ 1,332

INVESTMENTS IN SUBSIDIARIES - P

INVESTMENTS IN SUBSIDIARIES - Profit / (loss) allocated to material NCIs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investments in subsidiaries
Profit/(loss) attributable to material NCIs	$ (13)	$ 92	$ 102
LLP "KaR-Tel"
Investments in subsidiaries
Profit/(loss) attributable to material NCIs	8	10
LLC "Sky Mobile"
Investments in subsidiaries
Profit/(loss) attributable to material NCIs	3	(21)
Global Telecom Holding S.A.E
Investments in subsidiaries
Profit/(loss) attributable to material NCIs	(40)	116
Omnium Telecom Algerie S.p.A
Investments in subsidiaries
Profit/(loss) attributable to material NCIs	$ 100	$ 141

INVESTMENTS IN SUBSIDIARIES - S

INVESTMENTS IN SUBSIDIARIES - Summarized income statement (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summarized income statement
Operating revenue	$ 9,474	$ 8,885	$ 9,606
Operating expenses	(7,968)	(7,801)	(9,082)
(Loss) / profit before tax	(24)	347	(595)
Income tax expense	(397)	(615)	(712)
(Loss) / profit for the period	(496)	2,420	(553)
Total comprehensive income / (loss)	(1,153)	2,312	(2,345)
Attributed to NCIs	(93)	79	(618)
LLP "KaR-Tel"
Summarized income statement
Operating revenue	348	308	534
Operating expenses	(296)	(255)	(410)
Other (expenses) / income	(7)	2	97
(Loss) / profit before tax	45	55	221
Income tax expense	(13)	(14)	(51)
(Loss) / profit for the period	32	41	170
Total comprehensive income / (loss)	32	41	170
Attributed to NCIs	8	10	44
LLC "Sky Mobile"
Summarized income statement
Operating revenue	108	136	164
Operating expenses	(97)	(162)	(93)
Other (expenses) / income	(2)	(12)	29
(Loss) / profit before tax	9	(38)	100
Income tax expense	(4)	(5)	(10)
(Loss) / profit for the period	5	(43)	90
Total comprehensive income / (loss)	5	(43)	90
Attributed to NCIs	3	(21)	40
Global Telecom Holding S.A.E
Summarized income statement
Operating revenue	3,015	2,955	2,894
Operating expenses	(2,384)	(2,463)	(2,462)
Other (expenses) / income	(450)	(213)	(364)
(Loss) / profit before tax	181	279	68
Income tax expense	(375)	(144)	(115)
(Loss) / profit for the period	(194)	135	(47)
Total comprehensive income / (loss)	(194)	135	(47)
Attributed to NCIs	(40)	116	26
Dividends paids to NCIS	116
Omnium Telecom Algerie S.p.A
Summarized income statement
Operating revenue	915	1,040	1,273
Operating expenses	(703)	(753)	(922)
Other (expenses) / income	(27)	(33)	(72)
(Loss) / profit before tax	185	254	279
Income tax expense	(49)	(69)	(106)
(Loss) / profit for the period	136	185	173
Total comprehensive income / (loss)	136	185	173
Attributed to NCIs	100	$ 141	132
Dividends paids to NCIS	$ 82		$ (57)

INVESTMENTS IN SUBSIDIARIES 107

INVESTMENTS IN SUBSIDIARIES - Summarized statement of financial position (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summarized statement of financial position
Property and equipment	$ 6,097	$ 6,719	$ 6,239
Intangible assets	2,168	2,257	2,224
Other non-current assets	199	118
Cash and cash equivalents	1,304	2,942	3,614	$ 6,342
Other current assets	394	439
Financial liabilities	(11,630)	(11,116)
Total equity	(3,927)	(6,043)	$ (3,894)	$ (3,976)
Attributed to equity holders of parent	4,352	5,960
Non-controlling interest	(425)	83
LLP "KaR-Tel"
Summarized statement of financial position
Property and equipment	184	203
Intangible assets	92	91
Other non-current assets	204	205
Trade and other receivables	22	16
Cash and cash equivalents	14	29
Other current assets	74	64
Provisions	(5)	(7)
Other liabilities	(84)	(94)
Total equity	501	507
Attributed to equity holders of parent	249	254
Non-controlling interest	252	253
LLC "Sky Mobile"
Summarized statement of financial position
Property and equipment	79	80
Intangible assets	12	14
Other non-current assets	131	147
Trade and other receivables	6	6
Cash and cash equivalents	32	33
Other current assets	12	3
Provisions	(4)	(15)
Other liabilities	(22)	(29)
Total equity	246	239
Attributed to equity holders of parent	79	75
Non-controlling interest	167	164
Global Telecom Holding S.A.E
Summarized statement of financial position
Property and equipment	2,028	2,314
Intangible assets	1,324	1,356
Other non-current assets	1,806	2,268
Trade and other receivables	250	222
Cash and cash equivalents	375	606
Other current assets	850	337
Financial liabilities	(3,072)	(2,903)
Provisions	(341)	(396)
Other liabilities	(1,876)	(1,787)
Total equity	1,344	2,017
Attributed to equity holders of parent	2,157	2,236
Non-controlling interest	(778)	(219)
Omnium Telecom Algerie S.p.A
Summarized statement of financial position
Property and equipment	517	531
Intangible assets	291	394
Other non-current assets	1,361	1,417
Trade and other receivables	31	44
Cash and cash equivalents	125	309
Other current assets	66	84
Financial liabilities	(128)	(343)
Provisions	(31)	(28)
Other liabilities	(400)	(492)
Total equity	1,832	1,916
Attributed to equity holders of parent	597	584
Non-controlling interest	$ 1,235	$ 1,332

INVESTMENTS IN SUBSIDIARIES 108

INVESTMENTS IN SUBSIDIARIES - Summarized statement of cash flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Summarized cash flow statement
Net operating cash flows	$ 2,475	$ 1,875	$ 2,033
Net investing cash flows	(3,016)	(2,671)	(2,634)
Net financing cash flows	(733)	(126)	(1,439)
Effect of exchange rate changes on cash and cash equivalents	(353)	(64)	(374)
LLP "KaR-Tel"
Summarized cash flow statement
Net operating cash flows	105	99	137
Net investing cash flows	(73)	(124)	(363)
Net financing cash flows	(48)	(83)	(110)
Effect of exchange rate changes on cash and cash equivalents		1	(5)
Net increase / (decrease) in cash equivalents	(16)	(107)	(341)
LLC "Sky Mobile"
Summarized cash flow statement
Net operating cash flows	23	58	81
Net investing cash flows	(24)	45	(65)
Net financing cash flows		(115)	(88)
Effect of exchange rate changes on cash and cash equivalents		(1)	(3)
Net increase / (decrease) in cash equivalents	(1)	(13)	(75)
Global Telecom Holding S.A.E
Summarized cash flow statement
Net operating cash flows	877	1,077	(339)
Net investing cash flows	(924)	(473)	(823)
Net financing cash flows	(157)	(492)	(1,032)
Effect of exchange rate changes on cash and cash equivalents	(18)	(14)	(151)
Net increase / (decrease) in cash equivalents	(222)	98	(2,345)
Omnium Telecom Algerie S.p.A
Summarized cash flow statement
Net operating cash flows	345	446	(706)
Net investing cash flows	(172)	(238)	(201)
Net financing cash flows	(350)	(288)	(1,270)
Effect of exchange rate changes on cash and cash equivalents	(7)	(14)	(153)
Net increase / (decrease) in cash equivalents	$ (184)	$ (94)	$ (2,330)

INVESTMENTS IN JOINT VENTURE109

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Significant joint ventures (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
VIP-CKH Luxembourg S.a.r.l
Investments in associates and joint ventures
Investment in joint ventures (as a percent)	50.00%	50.00%
VIP CKH Ireland Limited
Investments in associates and joint ventures
Investment in joint ventures (as a percent)	50.00%	50.00%
Euroset
Investments in associates and joint ventures
Investment in joint ventures (as a percent)	50.00%	50.00%

INVESTMENTS IN JOINT VENTURE110

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Investments in associates and joint ventures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investments in associates and joint ventures
Balance at the beginning of the period	$ 2,179	$ 201	$ 265
Acquisitions		2,113
Share of (loss) / profit of joint ventures and associates	(412)	48	14
Reclassified to assets held for sale			(19)
Share of other comprehensive loss of joint ventures	(12)
Impairment of joint ventures and associates	(110)	(99)
Foreign currency translation	276	(84)	(59)
Balance at the end of the period	1,921	2,179	201
Italy Joint Venture
Investments in associates and joint ventures
Balance at the beginning of the period	2,053
Acquisitions		2,113
Share of (loss) / profit of joint ventures and associates	(390)	59
Share of other comprehensive loss of joint ventures	(12)
Foreign currency translation	270	(119)
Balance at the end of the period	1,921	2,053
Euroset
Investments in associates and joint ventures
Balance at the beginning of the period	126	199	237
Share of (loss) / profit of joint ventures and associates	(22)	(10)	18
Impairment of joint ventures and associates	(110)	(99)
Foreign currency translation	$ 6	36	(56)
Balance at the end of the period		126	199
Other
Investments in associates and joint ventures
Balance at the beginning of the period		2	28
Share of (loss) / profit of joint ventures and associates		(1)	(4)
Reclassified to assets held for sale			(19)
Foreign currency translation		$ (1)	(3)
Balance at the end of the period			$ 2

INVESTMENTS IN JOINT VENTURE111

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Italy joint venture - Income statement (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income statement and statement of comprehensive income
Operating revenue	$ 9,474	$ 8,885	$ 9,606
Operating expenses	(7,968)	(7,801)	(9,082)
Income tax expense	(397)	(615)	(712)
(Loss) / profit for the period	(496)	2,420	(553)
Other comprehensive loss	(657)	(108)	(1,792)
Total comprehensive (loss) / income for the period, net of tax	(1,153)	2,312	$ (2,345)
Italy Joint Venture
Income statement and statement of comprehensive income
Operating revenue	6,913	1,250
Operating expenses	(6,877)	(1,058)
Other expenses	(755)	(20)
Income tax expense	(61)	(54)
(Loss) / profit for the period	(780)	118
Other comprehensive loss	(24)
Total comprehensive (loss) / income for the period, net of tax	(804)	118
Amount of depreciation and amortization expense included in operating expenses	2,063	290
Amount of interest expense included in other income or expenses	$ 484	$ 68

INVESTMENTS IN JOINT VENTURE112

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Italy joint venture - Statement of financial position (Details) - USD ($) $ in Millions	Nov. 05, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of financial position
Non-current assets		$ 15,113	$ 16,643
Current assets		3,875	4,550
Assets held for sale		533
Total assets		19,521	21,193
Non-current liabilities		(10,937)	(8,593)
Current liabilities		(4,607)	(6,557)
Liabilities relating to assets held for sale		(50)
Cash and cash equivalents		1,304	2,942	$ 3,614	$ 6,342
Current financial liabilities		(1,268)	(3,046)
Non-current financial liabilities		(10,362)	(8,070)
Italy Joint Venture
Statement of financial position
Non-current assets		17,672	17,469
Current assets		2,782	2,579
Assets held for sale		289	53
Total assets		20,743	20,101
Non-current liabilities		(13,166)	(12,673)
Current liabilities		(3,729)	(3,322)
Liabilities relating to assets held for sale		(7)
Total liabilities		(16,902)	(15,995)
Net assets		$ 3,841	$ 4,106
Ownership interest in joint venture (in percentage)	50.00%	50.00%	50.00%
Company's share of Italy Joint Venture net assets		$ 1,921	$ 2,053
Carrying amount		1,921	2,053
Cash and cash equivalents		743	666
Current financial liabilities		(59)	(186)
Non-current financial liabilities		(12,406)	(12,409)
Dividends received		$ 0	$ 0

INVESTMENTS IN JOINT VENTURE113

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Italy joint venture - Segment information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment information
Operating revenue	$ 9,474	$ 8,885	$ 9,606
Adjusted EBITDA	3,587	3,232	2,875
Capital expenditures	1,791	1,741	2,034
Italy Joint Venture Segment
Segment information
Operating revenue	6,913	1,250
Adjusted EBITDA	2,131	482
Capital expenditures	1,434	584
Reportable segments
Segment information
Operating revenue	9,474	8,885	$ 9,606
Reportable segments \| Italy Joint Venture Segment
Segment information
Operating revenue	6,912	$ 1,250
Inter-segment \| Italy Joint Venture Segment
Segment information
Operating revenue	$ 1

INVESTMENTS IN JOINT VENTURE114

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Italy joint venture - Reconciliation of Adjusted EBITDA (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of Adjusted EBITDA
Adjusted EBITDA	$ 3,587	$ 3,232	$ 2,875
Impairment Loss	(66)	(192)	(245)
Gain / (loss) on disposals of non-current assets	(24)	(20)	(39)
Net finance costs	(935)	(830)	(829)
Other nonoperating (losses) / gains	(97)	(82)	(42)
Income tax expense	472	635	220
(Loss) / profit for the period	(496)	2,420	$ (553)
Italy Joint Venture Segment
Reconciliation of Adjusted EBITDA
Adjusted EBITDA	2,131	482
Depreciation and amortization	(2,063)	(290)
Impairment Loss	(27)
Gain / (loss) on disposals of non-current assets	(4)
Net finance costs	(468)	(68)
Other nonoperating (losses) / gains	(288)	48
Income tax expense	(61)	(54)
(Loss) / profit for the period	$ (780)	$ 118

INVESTMENTS IN JOINT VENTURE115

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Refinancing of Wind Tre S.p.A (Details) - Italy Joint Venture € in Millions, $ in Millions	Oct. 24, 2017EUR (€)item	Nov. 03, 2017EUR (€)	Nov. 03, 2017USD ($)	Oct. 24, 2017USD ($)
Disclosure of detailed information about borrowings [line items]
Number of international banks to whom we entered agreement \| item	21
Term loan
Disclosure of detailed information about borrowings [line items]
Facility amount	€ 3,000			$ 3,500
Debt instrument term	5 years
Interest rate (as a percent)	2.00%			2.00%
Revolving credit facility
Disclosure of detailed information about borrowings [line items]
Facility amount	€ 400			$ 470
Debt instrument term	5 years
Interest rate (as a percent)	1.75%			1.75%
Senior secured notes \| Euro
Disclosure of detailed information about borrowings [line items]
Facility amount		€ 5,600	$ 6,516
Senior secured notes \| U.S. Dollar
Disclosure of detailed information about borrowings [line items]
Facility amount \| $			$ 2,000
Senior Secured Floating Rate Notes due 2024
Disclosure of detailed information about borrowings [line items]
Facility amount		2,250
2.625% Senior Secured Notes due 2023
Disclosure of detailed information about borrowings [line items]
Facility amount		€ 1,625
Interest rate (as a percent)		2.625%	2.625%
3.125% Senior Secured Notes due 2025
Disclosure of detailed information about borrowings [line items]
Facility amount		€ 1,750
Interest rate (as a percent)		3.125%	3.125%
5.0% Senior Secured Notes due 2026
Disclosure of detailed information about borrowings [line items]
Facility amount \| $			$ 2,000
Interest rate (as a percent)		5.00%	5.00%

INVESTMENTS IN JOINT VENTURE116

INVESTMENTS IN JOINT VENTURES AND ASSOCIATES - Impairment of Euroset (Details) € in Millions, $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2017EUR (€)
Statement of financial position
Impairment Loss \| $			$ 66	$ 192	$ 245
Euroset
Statement of financial position
Impairment Loss \| $		$ 99
Discount rate (functional currency)	13.40%	16.00%
Average annual revenue growth rate during forecast period (functional currency )	1.70%	4.50%
Terminal growth rate	0.00%	1.00%
Average operating (EBITDA) margin during forecast period	0.00%	3.70%
Average capital expenditure as a percentage of revenue	0.90%	0.40%
Proportion of ownership interest in joint venture			50.00%	50.00%
VIP-CKH Luxembourg S.a.r.l
Statement of financial position
Proportion of ownership interest in joint venture			50.00%	50.00%
Shareholder loan payable \| €						€ 5,114
VIP CKH Ireland Limited
Statement of financial position
Proportion of ownership interest in joint venture			50.00%	50.00%
Shareholder loan receivable \| €						€ 5,114

PROPERTY AND EQUIPMENT - Activi

PROPERTY AND EQUIPMENT - Activity (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property plant and equipment
Property, plant and equipment at beginning of period	$ 6,719	$ 6,239
Impairment	15	100
Property, plant and equipment at end of period	6,097	6,719
Gross carrying amount
Property plant and equipment
Property, plant and equipment at beginning of period	14,858	12,523
Reclassified to assets held for sale	(675)
Acquisitions		199
Additions	1,273	1,412
Disposals	(744)	(508)
Translation adjustment	(299)	1,232
Property, plant and equipment at end of period	14,413	14,858
Amortization and impairment
Property plant and equipment
Property, plant and equipment at beginning of period	(8,139)	(6,284)
Reclassified to assets held for sale	482
Depreciation charges	(1,454)	(1,439)
Disposals	695	464
Impairment	(15)	(100)
Translation adjustment	115	(780)
Property, plant and equipment at end of period	(8,316)	(8,139)
Telecommunications equipment
Property plant and equipment
Property, plant and equipment at beginning of period	5,166	4,847
Property, plant and equipment at end of period	4,997	5,166
Telecommunications equipment \| Gross carrying amount
Property plant and equipment
Property, plant and equipment at beginning of period	12,092	10,068
Reclassified to assets held for sale	(662)
Acquisitions		116
Additions	39	62
Disposals	(671)	(444)
Transfer	1,426	1,153
Translation adjustment	(284)	1,137
Property, plant and equipment at end of period	11,940	12,092
Telecommunications equipment \| Amortization and impairment
Property plant and equipment
Property, plant and equipment at beginning of period	(6,926)	(5,221)
Reclassified to assets held for sale	478
Depreciation charges	(1,270)	(1,266)
Disposals	635	415
Transfer	14	(17)
Impairment	(5)	(65)
Translation adjustment	131	(772)
Property, plant and equipment at end of period	(6,943)	(6,926)
Land, buildings and constructions
Property plant and equipment
Property, plant and equipment at beginning of period	243	244
Property, plant and equipment at end of period	240	243
Land, buildings and constructions \| Gross carrying amount
Property plant and equipment
Property, plant and equipment at beginning of period	461	423
Reclassified to assets held for sale	(1)
Acquisitions		10
Additions	14	7
Disposals	(5)	(9)
Transfer	15	9
Translation adjustment	(2)	21
Property, plant and equipment at end of period	482	461
Land, buildings and constructions \| Amortization and impairment
Property plant and equipment
Property, plant and equipment at beginning of period	(218)	(179)
Depreciation charges	(32)	(33)
Disposals	5	6
Transfer	1	(1)
Impairment		(2)
Translation adjustment	2	(9)
Property, plant and equipment at end of period	(242)	(218)
Office and other equipment
Property plant and equipment
Property, plant and equipment at beginning of period	456	425
Property, plant and equipment at end of period	470	456
Office and other equipment \| Gross carrying amount
Property plant and equipment
Property, plant and equipment at beginning of period	1,319	1,113
Reclassified to assets held for sale	(5)
Acquisitions		39
Additions	26	21
Disposals	(49)	(33)
Transfer	164	52
Translation adjustment	24	127
Property, plant and equipment at end of period	1,479	1,319
Office and other equipment \| Amortization and impairment
Property plant and equipment
Property, plant and equipment at beginning of period	(863)	(688)
Reclassified to assets held for sale	3
Depreciation charges	(152)	(140)
Disposals	42	29
Transfer	(17)	21
Impairment		(6)
Translation adjustment	(22)	(79)
Property, plant and equipment at end of period	(1,009)	(863)
Equipment not installed and assets under construction
Property plant and equipment
Property, plant and equipment at beginning of period	854	723
Property, plant and equipment at end of period	390	854
Equipment not installed and assets under construction \| Gross carrying amount
Property plant and equipment
Property, plant and equipment at beginning of period	986	919
Reclassified to assets held for sale	(7)
Acquisitions		34
Additions	1,194	1,322
Disposals	(19)	(22)
Transfer	(1,605)	(1,214)
Translation adjustment	(37)	(53)
Property, plant and equipment at end of period	512	986
Equipment not installed and assets under construction \| Amortization and impairment
Property plant and equipment
Property, plant and equipment at beginning of period	(132)	(196)
Reclassified to assets held for sale	1
Disposals	13	14
Transfer	2	(3)
Impairment	(10)	(27)
Translation adjustment	4	80
Property, plant and equipment at end of period	$ (122)	$ (132)

PROPERTY AND EQUIPMENT - Additi

PROPERTY AND EQUIPMENT - Additional information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Property plant and equipment
Acquired property and equipment, not yet paid	$ 441	$ 699
Impairment	15	100
Property plant and equipment pledged as security for bank borrowings	875	1,029
Interest cost capitalized	$ 3	$ 5
Capitalization rate of borrowings (In percent)	8.30%	10.30%
Telecommunications equipment \| Minimum
Property plant and equipment
Useful life (in years)	P3Y
Telecommunications equipment \| Maximum
Property plant and equipment
Useful life (in years)	P20Y
Buildings and constructions \| Minimum
Property plant and equipment
Useful life (in years)	P10Y
Buildings and constructions \| Maximum
Property plant and equipment
Useful life (in years)	P50Y
Office and other equipment \| Minimum
Property plant and equipment
Useful life (in years)	P3Y
Office and other equipment \| Maximum
Property plant and equipment
Useful life (in years)	P10Y
Ukraine, Pakistan and Bangladesh
Property plant and equipment
Depreciation charges	$ 74	$ 153

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) $ in Millions	May 16, 2017USD ($)item	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Intangible assets
Balance at beginning of the period		$ 2,257	$ 2,224
Balance at end of the period		2,168	2,257
Acquired intangible assets, not yet paid		92	194
Intangible assets were pledged as collateral		0
Intangible assets have restrictions on title		0
Telecommunications licenses, frequencies and permissions
Intangible assets
Balance at beginning of the period		1,128	1,056
Balance at end of the period		1,256	1,128
Software
Intangible assets
Balance at beginning of the period		380	369
Balance at end of the period		351	380
Brands and trademarks
Intangible assets
Balance at beginning of the period		358	375
Balance at end of the period		262	358
Customer relationships
Intangible assets
Balance at beginning of the period		337	337
Balance at end of the period		255	337
Other intangible assets
Intangible assets
Balance at beginning of the period		54	87
Balance at end of the period		44	54
10 MHz paired 4G/LTE spectrum \| Pakistan Mobile Communications Limited
Intangible assets
Frequency bands (in MHz) \| item	1,800
Total consideration for acquisition of additional 4G/LTE spectrum	$ 295
Tax rate withholdings on dividend paid to company's ADS depositary (in percent)	10.00%
Gross carrying amount
Intangible assets
Balance at beginning of the period		5,748	5,203
Acquisitions			201
Reclassifications to AHFS		(8)
Additions		518	329
Disposals		(140)	(100)
Translation adjustment		(225)	115
Balance at end of the period		5,893	5,748
Gross carrying amount \| Telecommunications licenses, frequencies and permissions
Intangible assets
Balance at beginning of the period		2,017	1,761
Acquisitions			70
Reclassifications to AHFS		(8)
Additions		332	164
Disposals		(38)	(16)
Translation adjustment		(110)	38
Balance at end of the period		2,193	2,017
Gross carrying amount \| Software
Intangible assets
Balance at beginning of the period		1,038	827
Acquisitions			1
Additions		178	176
Disposals		(93)	(63)
Transfer		4	11
Translation adjustment		(25)	86
Balance at end of the period		1,102	1,038
Gross carrying amount \| Brands and trademarks
Intangible assets
Balance at beginning of the period		577	564
Acquisitions			30
Translation adjustment		(25)	(17)
Balance at end of the period		552	577
Gross carrying amount \| Customer relationships
Intangible assets
Balance at beginning of the period		1,853	1,738
Acquisitions			100
Disposals			(6)
Translation adjustment		(44)	21
Balance at end of the period		1,809	1,853
Gross carrying amount \| Other intangible assets
Intangible assets
Balance at beginning of the period		263	313
Additions		8	(11)
Disposals		(9)	(15)
Transfer		(4)	(11)
Translation adjustment		(21)	(13)
Balance at end of the period		237	263
Amortization and impairment
Intangible assets
Balance at beginning of the period		(3,491)	(2,979)
Reclassifications to AHFS		6
Amortization charge for the year		(537)	(497)
Disposals		136	95
Impairment			(14)
Translation adjustment		161	(96)
Balance at end of the period		(3,725)	(3,491)
Amortization and impairment \| Telecommunications licenses, frequencies and permissions
Intangible assets
Balance at beginning of the period		(889)	(705)
Reclassifications to AHFS		6
Amortization charge for the year		(160)	(161)
Disposals		37	16
Impairment			(12)
Translation adjustment		69	(27)
Balance at end of the period		(937)	(889)
Amortization and impairment \| Software
Intangible assets
Balance at beginning of the period		(658)	(458)
Amortization charge for the year		(206)	(187)
Disposals		91	60
Impairment			(2)
Translation adjustment		22	(71)
Balance at end of the period		(751)	(658)
Amortization and impairment \| Brands and trademarks
Intangible assets
Balance at beginning of the period		(219)	(189)
Amortization charge for the year		(83)	(37)
Translation adjustment		12	7
Balance at end of the period		(290)	(219)
Amortization and impairment \| Customer relationships
Intangible assets
Balance at beginning of the period		(1,516)	(1,401)
Amortization charge for the year		(75)	(97)
Disposals			6
Translation adjustment		37	(24)
Balance at end of the period		(1,554)	(1,516)
Amortization and impairment \| Other intangible assets
Intangible assets
Balance at beginning of the period		(209)	(226)
Amortization charge for the year		(13)	(15)
Disposals		8	13
Translation adjustment		21	19
Balance at end of the period		(193)	$ (209)
Pakistan \| Amortization and impairment \| Brands and trademarks
Intangible assets
Amortization charge for the year		$ 45

FINANCIAL ASSETS AND LIABILI120

FINANCIAL ASSETS AND LIABILITIES - Financial assets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
FINANCIAL ASSETS
Total financial assets, at carrying value	$ 1,164	$ 496
Financial assets, at fair value	1,164	496
Non-current	34	306
Current	1,130	190
Financial assets at fair value
FINANCIAL ASSETS
Total financial assets, at carrying value	81	85
Financial assets, at fair value	81	85
Cash pledged as collateral \| Global Telecom Holding S.A.E
FINANCIAL ASSETS
Total financial assets, at carrying value	987
Financial assets at fair value through profit or loss \| Foreign exchange contracts
FINANCIAL ASSETS
Total financial assets, at carrying value	5	2
Financial assets, at fair value	5	2
Financial assets at fair value through profit or loss \| Embedded derivatives in notes
FINANCIAL ASSETS
Total financial assets, at carrying value	5	12
Financial assets, at fair value	5	12
Available for sale financial instruments \| Available-for-sale financial instruments
FINANCIAL ASSETS
Total financial assets, at carrying value	71	71
Financial assets, at fair value	71	71
Financial assets at amortised cost \| Loans granted, deposits and other financial assets
FINANCIAL ASSETS
Total financial assets, at carrying value	1,083	411
Financial assets, at fair value	1,083	411
Financial assets at amortised cost \| Bank deposits and interest accrued
FINANCIAL ASSETS
Total financial assets, at carrying value	70	385
Financial assets, at fair value	70	385
Financial assets at amortised cost \| Cash pledged as collateral
FINANCIAL ASSETS
Total financial assets, at carrying value	998
Financial assets, at fair value	998
Financial assets at amortised cost \| Other investment
FINANCIAL ASSETS
Total financial assets, at carrying value	12	24
Financial assets, at fair value	12	24
Financial assets at amortised cost \| Other loans granted
FINANCIAL ASSETS
Total financial assets, at carrying value	3	2
Financial assets, at fair value	$ 3	$ 2

FINANCIAL ASSETS AND LIABILI121

FINANCIAL ASSETS AND LIABILITIES - Financial liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	$ 11,630	$ 11,116
Financial liabilities, at fair value	12,110	11,570
Non-current financial liabilities	10,362	8,070
Current financial liabilities	1,268	3,046
Financial liabilities at fair value
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	109	83
Financial liabilities, at fair value	109	83
Financial liabilities at fair value through profit or loss \| Foreign exchange contracts
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value		29
Financial liabilities, at fair value		29
Financial liabilities at fair value through profit or loss \| Contingent consideration
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	49	47
Financial liabilities, at fair value	49	47
Derivatives designated as hedges \| Foreign exchange contracts \| Derivatives designated as cash flow hedges
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value		4
Financial liabilities, at fair value		4
Derivatives designated as hedges \| Cross currency interest rate exchange contracts \| Net investment hedge accounting
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	59
Financial liabilities, at fair value	59
Derivatives designated as hedges \| Interest rate exchange contracts \| Derivatives designated as cash flow hedges
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	1	3
Financial liabilities, at fair value	1	3
Financial liabilities at amortized cost \| Bank loans and bonds at amortized cost
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	11,103	10,489
Financial liabilities, at fair value	11,548	10,983
Financial liabilities at amortized cost \| Financial liabilities at amortised cost
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	11,521	11,033
Financial liabilities, at fair value	12,001	11,487
Financial liabilities at amortized cost \| Bank loans and bonds at amortized cost
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	11,198	10,702
Financial liabilities, at fair value	11,678	11,156
Financial liabilities at amortized cost \| Interest accrued
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	129	173
Financial liabilities, at fair value	130	173
Financial liabilities at amortized cost \| Discounts, unamortized fees, hedge basis adjustment
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	(34)	40
Financial liabilities at amortized cost \| Put-option liability over non-controlling interest
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	310	290
Financial liabilities, at fair value	310	290
Financial liabilities at amortized cost \| Other financial liabilities
FINANCIAL LIABILITIES
Total financial liabilities, at carrying value	13	41
Financial liabilities, at fair value	$ 13	$ 41

FINANCIAL ASSETS AND LIABILI122

FINANCIAL ASSETS AND LIABILITIES - Bank loans and bonds (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Bank loans and bonds
Total bank loans and bonds	$ 11,103	$ 10,489
Loan 8.75-10.0%
Bank loans and bonds
Total bank loans and bonds	2,474
Notes 5.2-5.95%
Bank loans and bonds
Total bank loans and bonds	1,554	$ 1,554
Notes 3.95-4.95%
Bank loans and bonds
Total bank loans and bonds	1,500
Loan 1.9-2.75%
Bank loans and bonds
Total bank loans and bonds	$ 752
Notes 7.5%
Bank loans and bonds
Interest rate (as a percent)	7.50%	7.50%
Total bank loans and bonds	$ 628	$ 1,280
Syndicated loan
Bank loans and bonds
Total bank loans and bonds	$ 250
Notes 9%
Bank loans and bonds
Interest rate (as a percent)	9.00%	9.00%
Total bank loans and bonds	$ 208	$ 198
Notes 6.25%
Bank loans and bonds
Spread on interest rate basis (as a percent)	6.25%	6.25%
Total bank loans and bonds		$ 349
Notes 6.25-7.25%
Bank loans and bonds
Total bank loans and bonds	$ 1,200	1,200
Eurobonds
Bank loans and bonds
Total bank loans and bonds	543	1,150
Loan 0.35-0.8%
Bank loans and bonds
Total bank loans and bonds	379	166
Loan 1.9%
Bank loans and bonds
Total bank loans and bonds	$ 212	$ 231
Loan 12.75%
Bank loans and bonds
Interest rate (as a percent)	12.75%	12.75%
Total bank loans and bonds		$ 1,021
Loan 3.3%
Bank loans and bonds
Total bank loans and bonds		$ 1,000
Senior Notes
Bank loans and bonds
Interest rate (as a percent)	8.60%	8.60%
Total bank loans and bonds	$ 300	$ 300
Syndicated loan (Algeria)
Bank loans and bonds
Total bank loans and bonds		340
Ruble Bonds
Bank loans and bonds
Total bank loans and bonds	19	660
Other loans
Bank loans and bonds
Total bank loans and bonds	$ 1,084	$ 1,040
Minimum \| Loan 8.75-10.0%
Bank loans and bonds
Interest rate (as a percent)	8.75%	8.75%
Minimum \| Notes 5.2-5.95%
Bank loans and bonds
Interest rate (as a percent)	5.20%	5.20%
Minimum \| Notes 3.95-4.95%
Bank loans and bonds
Interest rate (as a percent)	3.95%
Minimum \| Notes 6.25-7.25%
Bank loans and bonds
Interest rate (as a percent)	6.25%	6.25%
Minimum \| Eurobonds
Bank loans and bonds
Interest rate (as a percent)	7.748%	7.748%
Minimum \| Ruble Bonds
Bank loans and bonds
Interest rate (as a percent)	10.00%	10.00%
Maximum \| Loan 8.75-10.0%
Bank loans and bonds
Interest rate (as a percent)	10.00%	10.00%
Maximum \| Notes 5.2-5.95%
Bank loans and bonds
Interest rate (as a percent)	5.95%	5.95%
Maximum \| Notes 3.95-4.95%
Bank loans and bonds
Interest rate (as a percent)	4.95%
Maximum \| Loan 1.9-2.75%
Bank loans and bonds
Interest rate (as a percent)	2.75%
Maximum \| Notes 6.25-7.25%
Bank loans and bonds
Interest rate (as a percent)	7.25%	7.25%
Maximum \| Eurobonds
Bank loans and bonds
Interest rate (as a percent)	9.10%	9.10%
Maximum \| Loan 0.35-0.8%
Bank loans and bonds
Interest rate (as a percent)	0.80%
Maximum \| Ruble Bonds
Bank loans and bonds
Interest rate (as a percent)	11.90%	11.90%
1m LIBOR \| Syndicated loan
Bank loans and bonds
Spread on interest rate basis (as a percent)	2.25%
1m LIBOR \| Loan 3.3%
Bank loans and bonds
Interest rate (as a percent)	3.30%	3.30%
6m LIBOR \| Loan 1.9%
Bank loans and bonds
Spread on interest rate basis (as a percent)	1.90%
3m EURIBOR \| Minimum \| Loan 1.9-2.75%
Bank loans and bonds
Spread on interest rate basis (as a percent)	1.90%
6m KIBOR \| Minimum \| Loan 0.35-0.8%
Bank loans and bonds
Spread on interest rate basis (as a percent)	0.35%
Bank of Algeria re-discount rate \| Maximum \| Syndicated loan (Algeria)
Bank loans and bonds
Spread on interest rate basis (as a percent)	2.00%	2.00%

FINANCIAL ASSETS AND LIABILI123

FINANCIAL ASSETS AND LIABILITIES - Termination of Guarantees (Details) - Financial guarantee contracts $ in Millions	Jun. 30, 2017USD ($)
RUB Notes
Bank loans and bonds
Facility amount	$ 12,000
Interest rate (as a percent)	9.00%
2019 Notes
Bank loans and bonds
Facility amount	$ 600
Interest rate (as a percent)	5.20%
2023 Notes
Bank loans and bonds
Facility amount	$ 1,000
Interest rate (as a percent)	5.95%

FINANCIAL ASSETS AND LIABILI124

FINANCIAL ASSETS AND LIABILITIES - Reconciliation of cash flows from financing activities (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jun. 29, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows
Proceeds from borrowings, net of fees paid		$ 6,193	$ 1,882	$ 2,052
Repayment of borrowings		(5,948)	(1,816)	$ (4,840)
Non-cash movements
Loss on early debt redemption	$ 124	124
Bank loans and bonds at amortized cost
Reconciliation of cash flows from financing activities
Financing activities at beginning of period		10,702
Cash flows
Proceeds from borrowings, net of fees paid		6,193
Repayment of borrowings		(5,948)
Interest paid		(834)
Non-cash movements
Interest accrued		774
Early redemption premium		168
Foreign currency translation		138
Other non-cash movements		5
Financing activities at end of period		$ 11,198	$ 10,702

FINANCIAL ASSETS AND LIABILI125

FINANCIAL ASSETS AND LIABILITIES - Issuance of New Notes and Cash Tender Offer for Certain Outstanding Debt Securities (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jun. 29, 2017	Dec. 31, 2017	Jun. 16, 2017	May 30, 2017	Dec. 31, 2016
Bank loans and bonds
Total outstanding amount		$ 11,103			$ 10,489
Aggregate principal amount repurchased.	$ 1,259
Loss on early debt redemption	$ 124	$ 124
2018 Notes
Bank loans and bonds
Total outstanding amount				$ 1,000
Interest rate (as a percent)				9.125%
2021 Notes
Bank loans and bonds
Total outstanding amount				$ 1,000
Interest rate (as a percent)				7.748%
2022 Notes
Bank loans and bonds
Total outstanding amount				$ 1,500
Interest rate (as a percent)				7.5043%
Senior Notes Due 2021
Bank loans and bonds
Facility amount			$ 600
Interest rate (as a percent)			3.95%
Senior Notes Due 2024
Bank loans and bonds
Facility amount			$ 900
Interest rate (as a percent)			4.95%

FINANCIAL ASSETS AND LIABILI126

FINANCIAL ASSETS AND LIABILITIES - Derivative and hedging activities (Details) € in Millions, ₨ in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Jun. 30, 2017EUR (€)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2017EUR (€)	Dec. 31, 2017USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2016PKR (₨)	Dec. 31, 2016USD ($)	Dec. 31, 2015PKR (₨)
Available facilities
Other comprehensive loss, net of tax, exchange differences on translation		$ 638	$ (85)	$ 1,836
Total outstanding amount						$ 11,103			$ 10,489
Cross currency swaps
Available facilities
Facility amount	€ 537						$ 600
Swaps term (in years)	4 years
Foreign exchange contracts \| Net investment hedge accounting
Available facilities
Other comprehensive loss, net of tax, exchange differences on translation		$ 125
Term loan \| Net investment hedge accounting
Available facilities
Facility amount \| €					€ 627
Interest rate swap contracts
Available facilities
Total outstanding amount \| ₨								₨ 10,350		₨ 16,483
Fixed interest rate \| Minimum \| Interest rate swap contracts
Available facilities
Interest rate (as a percent)					8.15%	8.15%
Fixed interest rate \| Maximum \| Interest rate swap contracts
Available facilities
Interest rate (as a percent)					8.72%	8.72%

FINANCIAL ASSETS AND LIABILI127

FINANCIAL ASSETS AND LIABILITIES - Derivatives under hedge accounting (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Derivatives under hedge accounting
Fair value of assets	$ 1,164	$ 496
Fair value of liabilities	12,110	11,570
Derivatives designated as cash flow hedges \| Interest rate exchange contracts
Derivatives under hedge accounting
Nominal value	93	158
Fair value of liabilities	1	3
Derivatives designated as cash flow hedges \| Foreign exchange contracts
Derivatives under hedge accounting
Nominal value		73
Fair value of liabilities		4
Net investment hedge accounting \| Cross currency interest rate exchange contracts
Derivatives under hedge accounting
Nominal value	600
Fair value of liabilities	59
Not Designated as Hedging \| Foreign exchange contracts
Derivatives under hedge accounting
Nominal value	283	407
Fair value of assets	$ 5	2
Fair value of liabilities		29
Not Designated as Hedging \| Cross currency interest rate exchange contracts
Derivatives under hedge accounting
Nominal value		$ 7

FINANCIAL ASSETS AND LIABILI128

FINANCIAL ASSETS AND LIABILITIES - Cash flows of the derivatives (Details) - Derivatives designated as cash flow hedges - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows of the derivatives
Cash flows	$ (2,000)	$ (11,000)
Cash flow hedge reserve	2,000	300
Less than 1 year
Cash flows of the derivatives
Cash flows	(2,000)	(9,000)
Between 1 and 3 years
Cash flows of the derivatives
Cash flows	$ 0	$ (2,000)

FINANCIAL ASSETS AND LIABILI129

FINANCIAL ASSETS AND LIABILITIES - Levels of Fair value (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	$ 1,164	$ 496
Fair value of liabilities	12,110	11,570
Financial assets at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	81	85
Financial assets at fair value \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	81	85
Financial assets at fair value \| Level 2 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	81	56
Financial assets at fair value \| Level 3 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets		29
Foreign exchange contracts \| Financial assets at fair value through profit or loss
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	5	2
Foreign exchange contracts \| Financial assets at fair value through profit or loss \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	5	2
Foreign exchange contracts \| Financial assets at fair value through profit or loss \| Level 2 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	5	2
Embedded derivatives in notes \| Financial assets at fair value through profit or loss
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	5	12
Embedded derivatives in notes \| Financial assets at fair value through profit or loss \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	5	12
Embedded derivatives in notes \| Financial assets at fair value through profit or loss \| Level 2 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	5	12
Available-for-sale financial instruments \| Available for sale financial instruments
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	71	71
Available-for-sale financial instruments \| Available for sale financial instruments \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	71	71
Available-for-sale financial instruments \| Available for sale financial instruments \| Level 2 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets	71	42
Available-for-sale financial instruments \| Available for sale financial instruments \| Level 3 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of assets		29
Financial liabilities at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	109	83
Financial liabilities at fair value \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	109	83
Financial liabilities at fair value \| Level 2 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	60	36
Financial liabilities at fair value \| Level 3 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	49	47
Foreign exchange contracts \| Financial liabilities at fair value through profit or loss
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		29
Foreign exchange contracts \| Financial liabilities at fair value through profit or loss \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		29
Foreign exchange contracts \| Financial liabilities at fair value through profit or loss \| Level 2 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		29
Foreign exchange contracts \| Derivatives designated as hedges \| Derivatives designated as cash flow hedges
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		4
Foreign exchange contracts \| Derivatives designated as hedges \| Derivatives designated as cash flow hedges \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		4
Foreign exchange contracts \| Derivatives designated as hedges \| Level 2 \| Derivatives designated as cash flow hedges \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		4
Interest rate exchange contracts \| Derivatives designated as cash flow hedges \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	1
Interest rate exchange contracts \| Level 2 \| Derivatives designated as cash flow hedges \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	1
Interest rate exchange contracts \| Derivatives designated as hedges \| Derivatives designated as cash flow hedges
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	1	3
Interest rate exchange contracts \| Derivatives designated as hedges \| Derivatives designated as cash flow hedges \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		3
Interest rate exchange contracts \| Derivatives designated as hedges \| Level 2 \| Derivatives designated as cash flow hedges \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		3
Contingent consideration \| Financial liabilities at fair value through profit or loss
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	49	47
Contingent consideration \| Financial liabilities at fair value through profit or loss \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	49
Contingent consideration \| Financial liabilities at fair value through profit or loss \| Level 3 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	49
Contingent consideration \| Derivatives designated as hedges \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		47
Contingent consideration \| Derivatives designated as hedges \| Level 3 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities		$ 47
Cross currency interest rate exchange contracts \| Derivatives designated as hedges \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	59
Cross currency interest rate exchange contracts \| Derivatives designated as hedges \| Level 2 \| Financial instruments at fair value
Disclosure of fair value measurement of assets and liabilities
Fair value of liabilities	$ 59

FINANCIAL ASSETS AND LIABILI130

FINANCIAL ASSETS AND LIABILITIES - Reconciliation of movements relating to financial instruments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
The reconciliation of movements relating to financial instruments
Beginning Balance, assets	$ 496
Currency translation adjustments		$ 259
Impairment Loss	(66)	(192)	$ (245)
Ending Balance, assets	1,164	496
Beginning balance, liabilities	11,116
Ending balance, liabilities	11,630	11,116
Transfers of financial assets from level 1 to 2	0	0
Transfers of financial assets from level 2 to 1	0	0
Transfers of financial assets into 3	0	0
Transfers of financial assets from 3	0	0
Transfers of financial liabilities from level 1 to 2	0	0
Transfers of financial liabilities from level 2 to 1	0	0
Transfers of financial liabilities into 3	0	0
Transfers of financial liabilities from 3	0	0
Level 3 \| Financial instruments at fair value
The reconciliation of movements relating to financial instruments
Beginning Balance, assets	29	27
Change in fair value recognized in other comprehensive income, assets	(9)	5
Currency translation adjustments		(3)
Impairment Loss	(20)
Ending Balance, assets		29	27
Beginning balance, liabilities	47
Change in fair value recognized in the income statement, liabilities	2
Purchased / incurred, liabilities		47
Ending balance, liabilities	49	47
Contingent consideration \| Level 3 \| Financial instruments at fair value
The reconciliation of movements relating to financial instruments
Beginning balance, liabilities	47
Change in fair value recognized in the income statement, liabilities	2
Purchased / incurred, liabilities		47
Ending balance, liabilities	49	47
Available-for-sale financial instruments \| Level 3 \| Financial instruments at fair value
The reconciliation of movements relating to financial instruments
Beginning Balance, assets	29	27
Change in fair value recognized in other comprehensive income, assets	(9)	5
Currency translation adjustments		(3)
Impairment Loss	$ (20)
Ending Balance, assets		$ 29	$ 27

FINANCIAL ASSETS AND LIABILI131

FINANCIAL ASSETS AND LIABILITIES - Offsetting financial assets and liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Other financial liabilities (non-current)
Net financial liabilities
Gross amounts recognized	$ 10,362	$ 8,070
Net amounts presented in the statement of financial position	10,362	8,070
Net Amount	10,362	8,070
Other financial liabilities (current)
Net financial liabilities
Gross amounts recognized	1,268	3,047
Gross amounts set off in the statement of financial position		(1)
Net amounts presented in the statement of financial position	1,268	3,046
Net Amount	1,268	3,046
Trade and other payables
Net financial liabilities
Gross amounts recognized	1,595	1,843
Gross amounts set off in the statement of financial position	(72)	(99)
Net amounts presented in the statement of financial position	1,523	1,744
Net Amount	1,523	1,744
Other financial assets (non-current)
Net financial assets
Gross amounts recognized	34	306
Net amounts presented in the consolidated statement of financial position	34	306
Net Amount	34	306
Other financial assets (current)
Net financial assets
Gross amounts recognized	1,130	190
Net amounts presented in the consolidated statement of financial position	1,130	190
Net Amount	1,130	190
Trade and other receivables
Net financial assets
Gross amounts recognized	817	783
Gross amounts set off in the consolidated statement of financial position	(72)	(98)
Net amounts presented in the consolidated statement of financial position	745	685
Net Amount	$ 745	$ 685

CASH AND CASH EQUIVALENTS (Deta

CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CASH AND CASH EQUIVALENTS
Cash at bank and on hand	$ 840	$ 1,707
Short-term deposits with original maturity of less than three months	464	1,235
Total cash and cash equivalents	1,304	2,942	$ 3,614	$ 6,342
Restricted cash	0
Investments in money market funds	$ 91	578
Uzbekistan
CASH AND CASH EQUIVALENTS
Restricted cash		347
Short and long term restricted deposits at financial institutions		372
Ukraine
CASH AND CASH EQUIVALENTS
Restricted cash		$ 3

OTHER ASSETS AND LIABILITIES (D

OTHER ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
OTHER ASSETS AND LIABILITIES
Advances to suppliers	$ 15	$ 21
Deferred costs related to connection fees	7	11
Indemnification assets	177	86
Total other non-current assets	199	118
Advances to suppliers	162	203
Input value added tax	181	179
Prepaid taxes	31	26
Deferred costs related to connection fees	12	12
Other assets	8	19
Total other current assets	394	439
Long-term deferred revenue	12	14
Provision for pensions and other post-employment benefits	54	17
Other liabilities	17	13
Total other non-current liabilities	83	44
Customer advances	228	234
Short-term deferred revenue	146	163
Customer deposits	189	156
Other taxes payable	427	365
Other payments to authorities	91	84
Due to employees	173	136
Other liabilities	92	98
Total other current liabilities	$ 1,346	$ 1,236

TRADE AND OTHER RECEIVABLES (De

TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
TRADE AND OTHER RECEIVABLES
Trade receivables, gross	$ 788	$ 769
Allowance for doubtful debt	(169)	(160)	$ (182)
Trade receivables, net	619	609
Other receivables	126	76
Total trade and other receivables	$ 745	$ 685

TRADE AND OTHER RECEIVABLES - M

TRADE AND OTHER RECEIVABLES - Movements in the allowance for doubtful debt (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
TRADE AND OTHER RECEIVABLES
Balance as at January 1	$ 160	$ 182
Acquisition of a subsidiary		9
Divestment of a subsidiary		(57)
Classified as held for sale	(1)
Allowance for doubtful debts	36	73
Recoveries	(9)	(5)
Accounts receivable written off	(13)	(44)
Foreign currency translation adjustment	(4)	2
Balance as at December 31	$ 169	$ 160

TRADE AND OTHER RECEIVABLES - A

TRADE AND OTHER RECEIVABLES - Aging of trade receivables (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Aging of trade receivables
Trade receivables, current	$ 619	$ 609
Neither past due nor impaired
Aging of trade receivables
Trade receivables, current	427	371
Less than 30 days past due \| Past due but not impaired
Aging of trade receivables
Trade receivables, current	101	86
Between 30 and 120 days past due \| Past due but not impaired
Aging of trade receivables
Trade receivables, current	53	81
Greater than 120 days past due \| Past due but not impaired
Aging of trade receivables
Trade receivables, current	$ 38	$ 71

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Inventories
Total inventories	$ 72	$ 125
Gross carrying amount
Inventories
Telephone handsets and accessories for sale	65	117
SIM-Cards	16	16
Other inventory	16	18
Accumulated impairment
Inventories
Total inventories	$ (25)	$ (26)

PROVISIONS (Details)

PROVISIONS (Details) - USD ($) $ in Millions	12 Months Ended
PROVISIONS (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
PROVISIONS
Balance at beginning of the year	$ 622	$ 1,370
Acquisitions		6
Divestments		(4)
Arising during the year	144	251
Reclassified to assets held for sale	(12)
Utilized	(100)	(896)
Unused amounts reversed	(115)	(34)
Discount rate adjustment and imputed interest (change in estimates)	10	1
Translation adjustments and other	(11)	(72)
Balance at end of the year	538	622
Current	422	148
Non-current	116	474
Income taxes provisions
PROVISIONS
Balance at beginning of the year	244	282
Arising during the year	57	67
Reclassified to assets held for sale	(1)
Utilized	(4)	(21)
Unused amounts reversed	(32)	(13)
Translation adjustments and other	(6)	(71)
Balance at end of the year	258	244
Current	258	3
Non-current		241
Indirect tax provisions
PROVISIONS
Balance at beginning of the year	96	65
Divestments		(3)
Arising during the year	28	63
Utilized	(16)	(24)
Unused amounts reversed	(4)	(5)
Translation adjustments and other	(6)
Balance at end of the year	98	96
Current	98
Non-current		96
Decommissioning provision
PROVISIONS
Balance at beginning of the year	98	87
Acquisitions		5
Arising during the year	5	1
Reclassified to assets held for sale	(11)
Utilized	(1)
Unused amounts reversed	(2)	(1)
Discount rate adjustment and imputed interest (change in estimates)	10	1
Translation adjustments and other		5
Balance at end of the year	99	98
Current		98
Non-current	99
Legal provisions
PROVISIONS
Balance at beginning of the year	157	919
Acquisitions		1
Arising during the year	28	75
Utilized	(66)	(821)
Unused amounts reversed	(68)	(16)
Translation adjustments and other	(2)	(1)
Balance at end of the year	49	157
Current	33	45
Non-current	16	112
Other provisions
PROVISIONS
Balance at beginning of the year	27	17
Divestments		(1)
Arising during the year	26	45
Utilized	(13)	(30)
Unused amounts reversed	(9)	1
Translation adjustments and other	3	(5)
Balance at end of the year	34	27
Current	33	2
Non-current	$ 1	$ 25

PROVISIONS - Legal Provisions (

PROVISIONS - Legal Provisions (Details) £ in Thousands, $ in Millions, د.ع in Billions

Feb. 22, 2016USD ($)

Feb. 18, 2016USD ($)

Nov. 19, 2012IQD (د.ع)item

Mar. 31, 2016USD ($)

Dec. 31, 2017USD ($)

Dec. 31, 2016USD ($)

Jun. 06, 2017USD ($)

Mar. 01, 2017GBP (£)

Mar. 01, 2017USD ($)

Nov. 14, 2016IQD (د.ع)

Nov. 14, 2016USD ($)

Sep. 30, 2015USD ($)

Nov. 19, 2012USD ($)

Investigations by SEC/DOJ/OM

Legal provision

Fines and disgorgements

$ 795

Investigations by SEC/DOJ/OM | Uzbekistan

Legal provision

Legal provisions

$ 33

$ 66

DPA, the guilty plea, DSA and SEC

Legal provision

Legal provisions

$ 900

Future direct and incremental expected legal fees

$ 105

Legal fees paid utilizing provision

Reduction in provision by change in estimate

$ 19

$ 66

Deferred prosecution agreement

Legal provision

Criminal penalty to USA

$ 230

Forfeiture fee to USA

Dutch Settlement Agreement

Legal provision

Criminal fines

230

Disgorgement fee

375

Forfeiture fee to department of justice

Disgorgement fee to SEC

167.5

Further payment over criminal fines to OM

$ 167.5

SEC Judgment

Legal provision

Disgorgement fee

$ 375

Forfeiture fee to department of justice

Disgorgement fee to SEC

167.5

Disgorgement fee to OM

$ 167.5

GTH-Iraqna Litigation | Atheer Telecom Iraq Limited

Legal provision

Legal provisions

$ 0

Number of tax liabilities seeking by litigant to be indemnified | item

Capital gain tax liability claimed by litigant

د.ع 219

$ 183

Income tax liability claimed by litigant

Withholding tax liability claimed by litigant

د.ع 7

$ 6

Withdrawal of claim by litigant for unjust enrichment

د.ع 219

$ 183

Contractual claims capped for litigant

$ 60

Final liability decided by trial in favour of litigant

$ 60

Accrued interest to be paid to litigant

Legal costs to be paid to litigant

£ 1,250

$ 2

PROVISIONS - VAT on Replacement

PROVISIONS - VAT on Replacement SIMs (Details) - VAT on Replacement SIMs - Banglalink Digital Communications Limited ৳ in Millions, $ in Millions	Nov. 20, 2017BDT (৳)	Aug. 13, 2015	Apr. 18, 2015BDT (৳)item	Apr. 01, 2012BDT (৳)item	Dec. 31, 2017USD ($)	Nov. 20, 2017USD ($)	Dec. 31, 2016USD ($)	Apr. 18, 2015USD ($)	Apr. 01, 2012USD ($)
PROVISIONS
Legal provisions \| $					$ 11		$ 11
NBR
PROVISIONS
Unpaid SIM tax				৳ 7,740					$ 94
Number of random SIM cards purchased by NBR				5
Total number of SIM cards issued				7,021,834
Number of other operators that received notices				3
Percentage of exposure of the original demand				8.50%
Assessed SIM tax liability				৳ 7,620					$ 92
LTU
PROVISIONS
Unpaid SIM tax	৳ 1,690					$ 20
Number of random SIM cards purchased by Review Committee				1,200
Percentage of incorrectly registered SIM cards				4.83%
Number of SIM cards incorrectly issued			6,887,633
SIM tax payable on incorrectly issued SIM cards			৳ 5,320					$ 64
Percentage of SIM tax deposited	10.00%	10.00%

ISSUED CAPITAL AND RESERVES (De

ISSUED CAPITAL AND RESERVES (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Apr. 15, 2016
ISSUED CAPITAL AND RESERVES
Treasury shares	(7,603,731)
Other comprehensive loss, net of tax, exchange differences on translation	$ 638	$ (85)	$ 1,836
Common shares
ISSUED CAPITAL AND RESERVES
Nominal value per share	$ 0.001	$ 0.001
Authorized common shares (nominal value of US$0.001 per share)	2,759,171,830	2,759,171,830
Issued shares (see Note 1)	1,756,731,135	1,756,731,135
Treasury shares	(7,603,731)	(7,726,487)
Outstanding shares	1,749,127,404	1,749,004,648
Convertible preferred shares
ISSUED CAPITAL AND RESERVES
Nominal value per share	$ 0.001	$ 0.001
Authorized common shares (nominal value of US$0.001 per share)	0	0
Outstanding shares	0	0
Preferred shares
ISSUED CAPITAL AND RESERVES
Outstanding shares				0
Number of shares redeemed				305,000,000
Redemption price per share				$ 0.001
Foreign exchange contracts \| Net investment hedge accounting
ISSUED CAPITAL AND RESERVES
Other comprehensive loss, net of tax, exchange differences on translation	$ 125

DIVIDENDS PAID AND PROPOSED (De

DIVIDENDS PAID AND PROPOSED (Details) - USD ($) $ / shares in Units, $ in Millions

Oct. 10, 2017

Sep. 06, 2017

Aug. 18, 2017

May 15, 2017

Apr. 12, 2017

Feb. 16, 2017

Jan. 25, 2017

Dec. 07, 2016

Sep. 02, 2016

Aug. 06, 2016

Aug. 02, 2016

Dec. 07, 2015

Dec. 31, 2017

Dec. 31, 2016

DIVIDENDS PAID AND PROPOSED

Dividend (per share)

$ 0.11

$ 0.195

$ 0.035

Total dividend payment

$ 193

$ 343

$ 61

Maximum

DIVIDENDS PAID AND PROPOSED

Tax rate withholdings on dividend paid to company's ADS depositary (in percent)

15.00%

VIP Kazakhstan Holding AG

DIVIDENDS PAID AND PROPOSED

Dividend paid to non controlling interest

$ 11

$ 55

$ 18

Omnium Telecom Algeria S.p.A

DIVIDENDS PAID AND PROPOSED

Dividend paid to non controlling interest

$ 82

$ 69

TNS Plus LLP

DIVIDENDS PAID AND PROPOSED

Dividend paid to non controlling interest

$ 12

$ 7

$ 18

Pakistan Mobile Communications Limited

DIVIDENDS PAID AND PROPOSED

Dividend paid to non controlling interest

$ 7

Dividend declared to the non-controlling interest

$ 54

Dividend payable to non-controlling interest

$ 26

$ 7

RELATED PARTIES - Transactions

RELATED PARTIES - Transactions with related parties and balances of accounts (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017USD ($)shareholder	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Disclosure of transactions between related parties
Revenue	$ 97	$ 147	$ 126
Finance income from related parties			1
Finance costs to related parties			1
Services	102	97	83
Other assets due from related parties	3	3
Total accounts receivables and other assets	26	40
Accounts payable	$ 5	15
Number of shareholders having significant influence \| shareholder	0
LetterOne
Disclosure of transactions between related parties
Revenue			2
Services	$ 6	8	8
Accounts payable		1
Telenor
Disclosure of transactions between related parties
Revenue	68	60	51
Services	67	64	44
Accounts receivable		13
Accounts payable		9
Joint ventures and associates
Disclosure of transactions between related parties
Revenue	29	19	6
Services	29	19	20
Accounts receivable	23	24
Accounts payable	5	5
Other related parties
Disclosure of transactions between related parties
Revenue			6
Services			5
Euroset \| PJSC VimpelCom \| PJSC VimpelCom
Disclosure of transactions between related parties
Revenue	3	4	5
Services	28	19	20
Italy Joint Venture
Disclosure of transactions between related parties
Finance costs to related parties	1	0
Services	$ 26	0
Discontinued operations
Disclosure of transactions between related parties
Revenue		68	60
Services		$ 6	$ 5

RELATED PARTIES - Compensation

RELATED PARTIES - Compensation of key management personnel (Details)	Aug. 07, 2017	Oct. 31, 2017	Mar. 31, 2016	Jan. 31, 2015	Dec. 31, 2014	Dec. 31, 2017EUR (€)	Dec. 31, 2017USD ($)	Nov. 08, 2017EUR (€)	Nov. 08, 2017USD ($)	Dec. 31, 2017EUR (€)	Dec. 31, 2017USD ($)	Dec. 31, 2016EUR (€)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Disclosure of transactions between related parties
Short-term employee benefits											$ 42,000,000		$ 37,000,000	$ 36,000,000
Long-term employee benefits											1,000,000
Share-based payment transactions											1,000,000			3,000,000
Termination benefits											1,000,000		4,000,000	2,000,000
Total compensation paid to key management personnel											45,000,000		41,000,000	$ 41,000,000
Retainer										€ 1,615,000	1,821,155	€ 747,653	827,144
Committees										139,166	156,930	180,554	199,750
Other compensation										1,528,652	1,723,785	344,791	381,449
Total										3,282,818	3,701,870	1,272,998	1,408,343
Total target amount granted under the plan											127,000,000		22,000,000
Total carrying value of obligation under Plan							$ 58,000,000				58,000,000		3,000,000
Share based payment expenses included in Selling, general and administrative expenses											55,000,000		3,000,000
Group CEO Jean Yves Charlier
Disclosure of transactions between related parties
Base salary (incl. holiday pay)										2,500,000	2,819,125	2,500,000	2,750,000
Annual incentive										4,125,000	4,651,556	2,130,000	2,343,000
Other										91,916	103,649	26,000	28,600
Share-based payment transactions										709,661	800,249
Total compensation paid to key management personnel										7,426,577	8,374,579	4,656,000	5,121,600
Group CFO Andrew Davies
Disclosure of transactions between related parties
Base salary (incl. holiday pay)								€ 1,125,000	$ 1,268,606			1,100,000	1,210,000
Annual incentive								3,518,295	3,967,405			850,000	935,000
Other								1,284,248	1,448,182
Termination benefits								250,000	281,912
Total compensation paid to key management personnel								€ 6,177,543	$ 6,966,105			1,950,000	2,145,000
Group CFO Trond Westlie
Disclosure of transactions between related parties
Base salary (incl. holiday pay)						€ 375,000	422,869
Other						5,400	6,089
Total compensation paid to key management personnel						€ 380,400	$ 428,958
Group General Counsel Scott Dresser
Disclosure of transactions between related parties
Base salary (incl. holiday pay)										925,000	1,043,076	750,000	825,000
Annual incentive										977,272	1,102,021	460,000	506,000
Other										31,186	35,166	20,000	22,000
Total compensation paid to key management personnel										1,933,458	2,180,263	1,230,000	1,353,000
Alexey M. Reznikovich
Disclosure of transactions between related parties
Retainer										40,000	45,106	40,000	44,253
Total										40,000	45,106	40,000	44,253
Stan Chudnovsky
Disclosure of transactions between related parties
Retainer										193,918	218,672	60,870	67,342
Total										193,918	218,672	60,870	67,342
Mikhail Fridman
Disclosure of transactions between related parties
Retainer										40,000	45,106	40,000	44,253
Total										40,000	45,106	40,000	44,253
Gennady Gazin
Disclosure of transactions between related parties
Retainer										194,048	218,818	150,000	165,948
Committees										55,000	62,021	110,000	121,695
Other compensation										4,757	5,364	343,189	379,676
Total										253,805	286,203	603,189	667,319
Andrei Gusev
Disclosure of transactions between related parties
Retainer										40,000	45,106	40,000	44,253
Total										40,000	45,106	40,000	44,253
Gunnar Holt
Disclosure of transactions between related parties
Retainer										133,950	151,049	40,000	44,253
Committees										20,833	23,492
Total										154,783	174,541	40,000	44,253
Sir Julian Horn-Smith
Disclosure of transactions between related parties
Retainer										194,048	218,818	150,000	165,948
Committees												50,000	55,316
Other compensation										5,145	5,802
Total										199,193	224,620	200,000	221,264
Jorn Jensen
Disclosure of transactions between related parties
Retainer										195,538	220,498	60,870	67,342
Committees										30,000	33,829
Other compensation												937	1,037
Total										225,538	254,327	61,807	68,379
Ursula Burns
Disclosure of transactions between related parties
Retainer										436,213	491,896
Committees										12,500	14,096
Other compensation										1,517,500	1,711,209
Total										1,966,213	2,217,201
Guy Laurence
Disclosure of transactions between related parties
Retainer										110,619	124,740
Committees										20,833	23,492
Other compensation										1,250	1,410
Total										132,702	149,642
Nils Katla
Disclosure of transactions between related parties
Retainer										36,666	41,346	40,000	44,253
Total										€ 36,666	$ 41,346	40,000	44,253
Morten Karlsen Srby
Disclosure of transactions between related parties
Retainer												23,913	26,455
Other compensation												665	736
Total												24,578	27,191
Trond Westlie
Disclosure of transactions between related parties
Retainer												102,000	112,844
Committees												20,554	22,739
Total												€ 122,554	$ 135,583
2014 tranche
Disclosure of transactions between related parties
Performance period				42 months
2015 tranche
Disclosure of transactions between related parties
Performance period			42 months
2016 tranche
Disclosure of transactions between related parties
Performance period		42 months
2017 tranche
Disclosure of transactions between related parties
Performance period		42 months
Transformation bonus plan
Disclosure of transactions between related parties
Percentage of performance based target pay	400.00%
Director LTI Plan
Disclosure of transactions between related parties
Performance period					3 years

RISKS, COMMITMENTS, CONTINGE145

RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES - Capital commitments (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Capital commitments
Total commitments	$ 861	$ 1,187
Less than 1 year
Capital commitments
Capital commitment, Property and equipment	555	689
Capital commitment, Intangible assets	40	32
Between 1 and 5 years
Capital commitments
Capital commitment, Property and equipment	262	448
Capital commitment, Intangible assets	$ 4	$ 18

RISKS, COMMITMENTS, CONTINGE146

RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES - Telecom licenses capital commitments (Details) - Russia - LTE services - PJSC VimpelCom person in Thousands, $ in Millions, ₽ in Billions	1 Months Ended		12 Months Ended
	Jul. 31, 2012RUB (₽)personregion	Jul. 31, 2012USD ($)personregion	Dec. 31, 2013region
Telecom license capital commitments
Number of regions LTE services were offered in			6
Minimum annual investment value for construction	₽ 15	$ 260
Required population to provide data transmission services in specified areas \| person	50	50
Number of targeted mobile service provision regions	5	5

RISKS, COMMITMENTS, CONTINGE147

RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES - Operating lease commitments (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Operating lease commitments
Total commitments	$ 466	$ 637
Less than 1 year
Operating lease commitments
Total commitments	70	121
Between 1 and 5 years
Operating lease commitments
Total commitments	229	368
More than 5 years
Operating lease commitments
Total commitments	$ 167	$ 148

RISKS, COMMITMENTS, CONTINGE148

RISKS, COMMITMENTS, CONTINGENCIES AND UNCERTAINTIES - CONTINGENT LIABILITIES (Details) ج.م. in Millions, $ in Millions, $ in Billions

Apr. 27, 2016action

May 14, 2012EGP (ج.م.)

May 14, 2012USD ($)

Mar. 31, 2011EGP (ج.م.)

Dec. 31, 2017USD ($)

Dec. 31, 2016CAD ($)

Dec. 31, 2016USD ($)

Dec. 31, 2015

Feb. 24, 2016EGP (ج.م.)

Jan. 18, 2016EGP (ج.م.)

Jan. 18, 2016USD ($)

May 14, 2012USD ($)

Dec. 31, 2011EGP (ج.م.)

Dec. 31, 2011USD ($)

Mar. 31, 2011USD ($)

May 31, 2010EGP (ج.م.)

May 31, 2010USD ($)

CONTINGENT LIABILITIES

Corporate income tax rate

25.00%

Threshold value of other individual contingencies for disclosure | $

$ 5

Total value of all other individual contingencies above threshold other than amounts already disclosed | $

$ 107

$ 29

VEON - Securities Class Action

CONTINGENT LIABILITIES

Number of class action lawsuits filed against the company | action

GTH-License Fees Tax Litigation | GTH | ETA

CONTINGENT LIABILITIES

Additional tax liabilities

ج.م. 2,000

$ 113

Additional tax liabilities cancelled

ج.م. 2,000

$ 113

Reassessed income tax determined by Appellate Committee

ج.م. 323

$ 18

Income tax payable - Interest

ج.م. 429

$ 24

GTH-Iraqi Profits and Dividends Tax Litigation | GTH | ETA

CONTINGENT LIABILITIES

Final assessed income tax payable | ج.م.

ج.م. 505

Income tax payable - Principal | ج.م.

235

Income tax payable - Interest

ج.م. 270

ج.م. 258

$ 15

GTH-Iraqi Profits and Dividends Tax Litigation | OTIL | ETA

CONTINGENT LIABILITIES

Corporate income tax rate

20.00%

Additional tax liabilities

ج.م. 235

ج.م. 282

$ 16

$ 13

Catalyst

CONTINGENT LIABILITIES

Damages sought alleging breach of contract

$ 1.3

$ 1,034

EVENTS AFTER THE REPORTING P149

EVENTS AFTER THE REPORTING PERIOD (Details) $ / shares in Units, ₴ in Millions, $ in Millions

Mar. 13, 2018$ / shares

Feb. 22, 2018$ / shares

Feb. 13, 2018USD ($)item

Sep. 06, 2017$ / shares

Apr. 12, 2017$ / shares

Dec. 07, 2016$ / shares

Dec. 07, 2015$ / shares

Dec. 31, 2017item

Mar. 06, 2018UAH (₴)item

Mar. 06, 2018USD ($)item

Jan. 31, 2018UAH (₴)item

Jan. 31, 2018USD ($)item

Disclosure of non-adjusting events after reporting period

Dividend (per share) | $ / shares

$ 0.11

$ 0.195

$ 0.035

Maximum

Disclosure of non-adjusting events after reporting period

Tax rate withholdings on dividend paid to company's ADS depositary (in percent)

15.00%

Dividend Approval by Supervisory Board

Disclosure of non-adjusting events after reporting period

Final dividend declared per share | $ / shares

$ 0.17

Aggregate dividend declared per share | $ / shares

$ 28

Tax rate withholdings on dividend paid to company's ADS depositary (in percent)

15.00%

Dividend (per share) | $ / shares

$ 0.17

JSC "Kyivstar" | Licenses to provide nationwide 4G/LTE services

Disclosure of non-adjusting events after reporting period

Number of 4G/LTE licenses secured

Total licenses

Frequency bands (in MHz)

2,600

License fee

₴ 900

$ 32

JSC "Kyivstar" | Acquisition of additional spectrum and 4G/LTE License

Disclosure of non-adjusting events after reporting period

Frequency bands (in MHz)

1,800

25 MHz paired spectrum cost

₴ 1,325

$ 47

Two lots of 5 MHz paired spectrum cost

₴ 1,512

$ 54

Banglalink Digital Communications Limited | Acquisition of additional spectrum and 4G/LTE License

Disclosure of non-adjusting events after reporting period

Spectrum cost | $

$ 308.6

Percentage of upfront payment

60.00%

Upfront payment term

30 days

Percentage of remaining payment

40.00%

Remaining payment term

4 years

Amount payable to convert into technology neutral spectrum | $

$ 35

License fee | $

$ 1.2

Banglalink Digital Communications Limited | Acquisition of additional spectrum and 4G/LTE License | Minimum

Disclosure of non-adjusting events after reporting period

Frequency bands (in MHz)

1,800

900

Banglalink Digital Communications Limited | Acquisition of additional spectrum and 4G/LTE License | Maximum

Disclosure of non-adjusting events after reporting period

Frequency bands (in MHz)

2,100

1,800