Survival test for Ukraine's energy sector

November 11, 2022

Secondly, the countries of the West have finally woken up and, following military aid, are beginning to regulargy help the energy front as well. Many thanks!

Thirdly, in order to get through the winter with minimum turbulence, Ukraine urgently needs to do its homework. Billions of hryvnias are needed not only for urgent restoration of damaged energy facilities but also for the creation and replenishment of reserves of critical equipment in case of further attacks.

The state should support generating companies, as they obviously cannot cope with such unprecedented destruction on their own. How to do it? There are many tools: International help from our partners. Loans under state guarantees. And, in the end, to go through this "missile fall", the market needs more liquidity.

As we know, the market model formed in July 2019 relies on manual administrative management and is completely inconsistent with the European practice, which led to multibillion-dollar losses of basic enterprises. After February 24, 2022, the situation only worsened, for obvious reasons. If we do not change this ugly model of the market, there is no chance of survival for Ukraine’s energy industry, which fully suits Ruscist terrorists, not the Ukrainian people.

Therefore, it is high time to introduce a pricing system that will not undermine the financial stability of enterprises but at least ensure their break-even. As the first step, it is advisable to review the marginal level of price caps.

The regulator understands the problem, but for some reason they still delay the decision. Meanwhile, missile attacks do not stop...

And fourthly, the Ukrainian energy system has shown more than once that it remains a hard nut to crack. It will show the same this time, too. Ukrainian energy engineers will not accept the unkindness of fate, their answer to Hamlet's question is “to be!”.

Volodymyr Omelchenko

Director, Energy Programmes

Born in 1967 in Kyiv

Education: Kyiv Politechnic Institute, Department of Chemical Engineering (1992)

Author of over 50 scientific works and op-ed publications. Took part in development and implementation of international energy projects and scientific research in international energy policy


1992 – 1996 — worked in different positions in the mechanical engineering industry

1997 – 1998 — Head Expert of the Division of Oil, Gas and Petroleum Refining Industry of the Ministry of Economy of Ukraine

1998 – 2003 — Naftohaz Ukrayiny National Joint-Stock Company, in Charge of Oil Transportation Section

2004 – 2007 — Chief Consultant at the National Institute of International Security Problems of Ukraine’s NSDC

since February, 2007 — Leading Expert, Razumkov Centre. Director of Energy Programmes since 2013

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