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PROPERTY AND EQUIPMENT | 12 Months Ended
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Dec. 31, 2024
Property, plant and equipment [abstract] |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The following table summarizes the movement in the net book value of property and equipment for the years ended December 31:
Net book value | Telecomm-unications equipment | Land, buildings and constructions | Office and other equipment | Equipment not installed and assets under construction | Right-of-use assets | Total
As of January 1, 2023 | 1,698 | 61 | 97 |  | 286 | 706 |  | 2,848 |
Additions | 79 |  | 3 |  | 31 |  | 438 |  | 318 |  | 869 |
Disposals | (1) |  | — |  | (3) |  | 4 |  | (28) |  | (28) |
Depreciation charge for the year | (349) |  | (6) |  | (26) |  | — |  | (146) |  | (527) |
Divestment and reclassification as held for sale | (12) |  | — |  | (1) |  | — |  | — |  | (13) |
Impairment | (3) |  | — |  | (3) |  | (2) |  | — |  | (8) |
Impairment reversal | 2 |  | — |  | — |  | 10 |  | 2 |  | 14 |
Transfers | 456 |  | 7 |  | 12 |  | (492) |  | — |  | (17) |
Modifications of right-of-use assets | — |  | — |  | — |  | — |  | 29 |  | 29 |
Translation adjustment | (182) |  | (4) |  | (5) |  | (18) |  | (60) |  | (269) |
As of December 31, 2023 | 1,688 | 61 | 102 |  | 226 | 821 |  | 2,898 |
Additions | 82 |  | 3 |  | 29 |  | 572 |  | 200 |  | 886 |
Disposals | (11) |  | — |  | (5) |  | — |  | (12) |  | (28) |
Depreciation charge for the year | (335) |  | (8) |  | (31) |  | — |  | (155) |  | (529) |
Divestment and reclassification as held for sale ** | (44) |  | — |  | (9) |  | (21) |  | (7) |  | (81) |
Impairment | (3) |  | — |  | — |  | (2) |  | (1) |  | (6) |
Impairment reversal | 1 |  | — |  | — |  | 1 |  | 1 |  | 3 |
Transfers | 433 |  | 22 |  | 26 |  | (493) |  | (10) |  | (22) |
Modifications of right-of-use assets | — |  | — |  | — |  | — |  | 84 |  | 84 |
Translation adjustment | (97) |  | (6) |  | (10) |  | (16) |  | (60) |  | (189) |
As of December 31, 2024 | 1,714 | 72 | 102 |  | 267 | 861 |  | 3,016 |
Cost | 4,508 |  | 163 |  | 359 |  | 280 |  | 1,370 |  | 6,680 |
Accumulated depreciation and impairment | (2,794) |  | (91) |  | (257) |  | (13) |  | (509) |  | (3,664) |
** This relates to the classification of Kyrgyzstan as held-for-sale and sale of TNS+ in Kazakhstan as explained in Note 11. There were no material changes in estimates related to property and equipment in 2024 and 2023. Property and equipment include assets in use in the amount of US$488 (2023: US$419) which were not paid for as of year-end. Property and equipment pledged as security for bank borrowings amounts to US$637 as of December 31, 2024 (2023: US$575), and primarily relate to liens securing borrowings of PMCL. The following table summarizes the movement in the net book value of right-of-use assets ("ROU") for the year ended December 31:
Net book value | ROU - Telecommunications Equipment | ROU - Land, Buildings and Constructions | ROU - Office and Other Equipment | Total
As of January 1, 2023 | 661 |  | 44 |  | 1 |  | 706 |
Additions | 271 |  | 32 |  | 15 |  | 318 |
Disposals | (25) |  | (3) |  | — |  | (28) |
Depreciation charge for the year | (131) |  | (13) |  | (2) |  | (146) |
Impairment reversal | 2 |  | — |  | — |  | 2 |
Transfers | 1 |  | (1) |  | — |  | — |
Modifications and reassessments | 25 |  | 5 |  | (1) |  | 29 |
Translation adjustment | (57) |  | (3) |  | — |  | (60) |
As of December 31, 2023 | 747 |  | 61 |  | 13 |  | 821 |
Additions | 167 |  | 23 |  | 10 |  | 200 |
Disposals | (8) |  | (4) |  | — |  | (12) |
Depreciation charge for the year | (133) |  | (17) |  | (5) |  | (155) |
Divestment and reclassification as held for sale | (4) |  | (3) |  | — |  | (7) |
Impairment | (1) |  | — |  | — |  | (1) |
Impairment reversal | 1 |  | — |  | — |  | 1 |
Transfers | (9) |  | (1) |  | — |  | (10) |
Modifications and reassessments | 69 |  | 15 |  | — |  | 84 |
Translation adjustment | (53) |  | (6) |  | (1) |  | (60) |
As of December 31, 2024 | 776 |  | 68 |  | 17 |  | 861 |
Cost | 1,234 |  | 111 |  | 25 |  | 1,370 |
Accumulated depreciation and impairment | (458) |  | (43) |  | (8) |  | (509) |
COMMITMENTS Capital commitments for the future purchase of equipment are as follows as of December 31:
|  | 2024 | 2023
Less than 1 year |  | 178 | 139
Total commitments |  | 178 | 139
Capital commitments arising from telecommunications licenses 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 for GSM-900/1800, “3G” (UMTS / WCDMA) mobile radiotelephone 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. 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. The useful life of VEON's assets generally fall within the following ranges:
Class of property and equipment | Useful life
Telecommunication equipment | 3 – 30 years
Buildings and constructions | 10 – 50 years
Office and other equipment | 2 – 10 years
Right-of-use assets | Equivalent lease term
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. Where applicable, the Company has applied sale and leaseback accounting principles, whereas the right-of-use asset arising from the leaseback is measured at the proportion of the previous carrying amount of the asset that relates to the right of use retained by VEON. Accordingly, VEON recognizes only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor. 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 developments 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. Estimated useful life for right-of-use assets is directly impacted by the equivalent lease term, refer to Note 17 for more information regarding Source of estimation uncertainty for lease terms.

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