Eutelsat shares jump as Ukraine flags curbs on Starlink military-grade service

Oct 14 (Reuters) - Shares in European satellite operator Eutelsat ETL.PA rose sharply on Wednesday after Ukraine said SpaceX's SPCX.O Starlink had introduced restrictions on its military-grade service, fuelling investor bets that European providers could benefit from growing strains between Washington and Kyiv.

Eutelsat shares were up 11.6% by 1034 GMT, while Luxembourg-based rival SES SESFg.LU, which also provides satellite connectivity services, gained 2.7%.

Analysts said the move reflected investor expectations that European governments and customers could seek alternatives to US-owned space assets if access to American services becomes less certain.

"I think this is related to the US administration's favourable Russia/unfavourable Ukraine stance that has developed in recent days, meaning no or limited access to U.S.-owned satellite services and intelligence sharing, putting European providers back in the spotlight as potential alternatives," Bernstein analyst Aleksander Peterc said.