Premium Essay

Energy of Ukraine: Call to Investors

In: Business and Management

Submitted By veres
Words 327
Pages 2
Energy of
Challenges &

Ukraine has excellent natural reserves
Natural Gas Reserves
R: 1 Tcm, P: 20 bcm
Uranium Reserves
>100 years,
P: 3000 kton

Oil Reserves
R: 900 Mton, P: 3 Mton

Hard Coal Reserves
R: 56 Bton, P: 28 Mton


War at East & Debt build-up (~1 bUSD)
Loss of anthracite coal and thermal generation
Dependence on Russia in gas supply
Oil prices drop and pressure on margin in E&D
State budget austerity and crises in national bank system • Cross-subsidies and disproportion in tariffs on gas and electricity • Manual mode of management in state enterprises


Diversification of supply: gas, coal, nuclear fuel
De-monopolization: all sectors but nuclear
Privatization: coal mines, thermal generation
Cut energy consumption: metering, house isolation,
ESCO market
• Closeness of EU markets: integration and synchronization with bigger energy markets

Mid-term Strategy
• Efficient use of energy

Mandatory metering of all utilities
Market-based tariffs
Preferential loans for house insulation
Incentives to flatten intraday electricity consumption

• Increase of domestic production

Implementation of 3rd Energy Package
Revision of tax regime
Free access to geo-data
Auction of licenses
Gasification of coal
Developing own production of nuclear power cells

• Diversification of supplies

Gas reverse & Hub
Strategic cooperation with Westinghouse on fuel cells
Creating National Reserve of Fuel
Synchronization with ENTSO-E

Undergoing Reforms

Gas market reform
3rd energy package compliant Electricity market reform
New law on the Regulator for energy markets
Market-based pricing
Corporate Governance in state enterprises
Elimination of price cross-subsidies


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