Eutelsat shares rise amid Starshield connectivity concerns in Ukraine

Eutelsat shares experienced a significant rally this week, rising approximately 25 percent over five trading sessions. The surge follows reports of operational limitations regarding Starshield, a SpaceX-linked satellite communication system used by the Ukrainian military.

Ukrainian officials indicated that restrictions on satellite communications have disrupted military operations, including the use of drones, during intensified Russian attacks. While SpaceX CEO Elon Musk stated that Starshield is owned and controlled by the United States government, the reported limitations have prompted investors to look toward European alternatives.

Eutelsat, which operates the OneWeb low-Earth orbit network, is increasingly viewed as a strategic option for European policymakers seeking sovereign control over critical communications. Analysts suggest that the current situation highlights the importance of diverse satellite providers to ensure reliable connectivity for government and security agencies during crises.