French satellite operator Eutelsat Communications SA said talks with the European Union to replace Elon Musk’s Starlink in Ukraine are intensifying as the US pulls back from its commitments there.

Shares in Franco-British satellite operator Eutelsat pulled back on Friday after soaring nearly 500% this week on the prospect of potentially replacing Starlink in Ukraine. By 0855 GMT, Eutelsat's shares were down 16.

Eutelsat is in talks with the European Union to supply additional internet access to Ukraine, it said on Tuesday, amid a two-day surge in its shares on the prospect that OneWeb satellites could replace Elon Musk's Starlink there.

Franco-British satellite operator Eutelsat is committed to delivering services to strengthen Europe's autonomy in space-based connectivity as it continues to supply internet access to war-torn Ukraine,

Suggestions that Ukraine could lose access to Elon Musk's Starlink satellite internet system, which has been vital in maintaining its military communications as it fights Russia's invasion, have focused investor interest on Starlink's smaller European rival Eutelsat.

While it has fewer than one-tenth of Starlink's satellites, Eutelsat is being floated as a potential replacement if Starlink access is cut.

Shares in Eutelsat surged more than 120% early on Tuesday, extending gains after rising 68% on Monday, as investors bet on OneWeb satellites to be the European alternative to Starlink in Ukraine. The French satellite company's shares have risen more than 270% since Friday's close,

Eutelsat said it was in talks with European governments about providing additional satellite connectivity in Ukraine, as investors bet that the French satellite operator could replace Elon Musk’s Starlink in the country.

Eutelsat said it was in talks with European governments about providing additional satellite connectivity in Ukraine, as investors bet the French satellite operator could replace Elon Musk’s Starlink in the country.

Eutelsat aims to deploy 40,000 terminals to replace Starlink in Ukraine soon. Talks with suppliers and the EU Commission are ongoing.

Joanna Darlington, Chief Communications and Investor Relations Officer for Eutelsat, told The Register that, over Europe, Eutelsat offers the same capabilities as Starlink in terms of coverage and latency, and the company's LEO services were already deployed in Ukraine.