- The US’ fraying relationship with Ukraine is boosting European satellite firm Eutelsat.
- Its share price tripled amid fears that Ukraine could face disruptions to its Starlink access.
- There’s no clear sign of that happening yet, but Eutelsat said it’s in talks with the EU.
French satellite provider Eutelsat’s shares tripled over the last two days amid concerns that Ukraine’s access to Starlink may be under threat.
Eutelsat shares on the Paris exchange surged 68% on Monday before jumping another 123% the next morning to $4.77. Prices tapered off at $3.79 at market close on Tuesday.
The leap comes as the US suspended aid to Ukraine on Monday, prompting fears of disruptions to capabilities like advanced American air defenses and internet access on the battlefield.
Starlink, owned by Elon Musk’s SpaceX, has been a vital internet provider for Ukraine’s military, and the loss of its services would be a severe blow to Kyiv’s communications and drone operations.
That’s key for Eutelsat, which merged with a UK-based Starlink competitor, OneWeb, in 2023.
The satellite firm has come to the fore as European leaders say they’re bolstering defense spending while raising the possibility that they could seek to fill any gaps in Ukraine’s internet access.
As its share price rose, a spokesperson for the company told Reuters it was discussing with the European Union how it might contribute to Ukraine’s internet access.
The company also told The Financial Times it had equipment ready to be “deployed swiftly in Ukraine to connect the most critical missions and infrastructures.”
Despite the jump this week, Eutelstat’s shares are still far below its past highs. Its stock reached about $33 in mid-2015 and has steadily declined in the last decade.
Eutelsat did not respond to a request for comment sent outside regular business hours by Business Insider.
No official sign yet that Starlink will disappear
Still, it’s unclear whether Ukraine’s Starlink access is at risk.
Musk, a close ally of President Donald Trump, denied a Reuters report from late February that said US officials discussed cutting off Starlink from Kyiv if it rejected a minerals deal with Washington.
And while the US partially pays for Ukraine’s Starlink subscription, European countries also fund many terminals. Poland, which pays for about half of Ukraine’s Starlink terminals, said it would continue to fund them.
Through OneWeb, Eutelsat is also already providing some satellite services to Ukraine’s governments and institutions, but it only has about one-tenth of Starlink’s satellites. Its constellation has fewer than 700 satellites, while Starlink runs over 7,000.
The European company operates 35 Geo satellites, which orbit at 21,000 miles above Earth, and about 630 low-earth orbit satellites, which orbit at about 750 miles above Earth.
On Sunday, European Commission spokesperson Thomas Regnier told reporters regional leaders were considering giving Ukraine access to GovSatCom as an alternative.
The system is a shared network of satellites already owned by European member states.
Eutelsat’s momentary stock boost also comes as European defense manufacturing shares surged due to the recent strain on US relations with its traditional allies and Ukraine.
Ursula von der Leyen, president of the European Commission, announced on Tuesday that European leaders would push to allocate 800 billion euros, or about $840 billion, to their defense spending collectively.
