Business news from Ukraine

Business news from Ukraine

Uzbekistan and Afghanistan sign $243 mln energy infrastructure agreements

The Ministry of Energy of Uzbekistan and the Afghan state energy company Da Afghanistan Breshna Sherkat (DABS) have signed agreements on infrastructure development worth a total of $243 million.

In particular, the following major projects have been approved:

  • expansion of the 500 kV Surkhon-Dashti Alvan power line with a capacity of 1,000 MW;
  • expansion of the Argani substation with a capacity of 800 megavolt-amperes (MVA);
  • construction of the Sheikh Mesri substation in the Afghan province of Nangarhar;
  • expansion of the 220 kV Kabul-Nangarhar power transmission line.

During the ceremony, DABS CEO Abdul Bari Omar called these four agreements vital for ensuring a reliable power supply in Afghanistan.

An agreement was also signed between DABS and Uzbek companies for the supply of electricity for a period of 10 years.

For reference: Uzbekistan has been supplying electricity to Afghanistan since 2002. Last December, Uzbekistan extended its agreement to export electricity to Afghanistan until 2025. Afghanistan imports 80% of its electricity from Uzbekistan, Tajikistan, Turkmenistan, and Iran, with the rest produced domestically.

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Denmark to allocate $19.4 mln to restore Ukraine’s energy infrastructure

Denmark will allocate 130 million Danish kroner (about $19.4 million – IF-U) to Ukraine to restore energy infrastructure damaged by Russian attacks, the Danish government’s press service reports.

The aid was announced by Minister of Climate, Energy and Supply Lars Oagard during a meeting with US Secretary of State Anthony Blinken and Ukrainian Foreign Minister Andriy Sybiga at the G7 Working Group on Ukraine’s Energy Security.

“Not only is Putin’s army invading Ukraine’s borders, Russia is violating the rules of war by launching massive attacks on Ukraine’s electricity and heat supply. Winter is just around the corner, and many Ukrainian homes will be left without heat and electricity. And that’s not all, ordinary employees of the energy sector who work tirelessly at their jobs are being targeted. We must do everything we can to make the Ukrainian energy system as resilient as possible,” said Oagard.

The Danish donation is funded by the Ministry of Foreign Affairs and will, among other things, support emergency measures and the procurement of equipment and spare parts to help restore security of supply. The support is provided in cooperation with UNDP, the Energy Community, the Danish Refugee Council and the Danish Red Cross.

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Belgium to allocate €9 mln for Ukraine’s energy infrastructure

Belgium will allocate an additional 9 million euros in aid to Ukraine to repair its damaged energy infrastructure, Belgian Minister of Development Cooperation Caroline Genne said on Friday.

“Ukraine’s energy infrastructure is old and too centralized, which makes it very vulnerable,” the minister said, as quoted by RTBF.

The 9 million euros will be channelled through the United Nations Development Program (UNDP), which has organized a system that allows for the rapid procurement of spare parts and the supply of new equipment to repair damaged or destroyed infrastructure. In doing so, UNDP “emphasizes sustainable and decentralized energy sources,” Genne explained.

According to her, “Together with military assistance, this support will help strengthen Ukraine’s resilience.”

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EBRD to allocate EUR 372 mln to Ukrenergo for repairs of energy infrastructure

The European Bank for Reconstruction and Development (EBRD) has approved a financing package under which NPC Ukrenergo will be allocated EUR 372 million to support urgent repair of damage caused by Russian bombing of civil energy infrastructure.
According to the bank’s press release, the company will be provided with a state-guaranteed loan of EUR 300 million, as well as a grant of EUR 72 million from the Netherlands.
In particular, EUR 150 million is provided for the purchase of equipment for emergency recovery work, another EUR 150 million is provided for the support of the capital structure of the NPC. Separately, part of the emergency repair loan will be supplemented by a grant from the Netherlands.
“This will be blended into a single EUR 372 million package to support the immediate transmission infrastructure restoration needs of Ukrenergo,” the EBRD said.
The Bank says that EBRD investments in Ukraine are made with the support of donors and partners. The United States of America, which has contributed $500 million to the EBRD’s Crisis Response Fund and is strongly committed to addressing to the impact of the war on Ukraine, will support up to 50 per cent of the EBRD’s loan with a funded guarantee.
“Urgent repairs on Ukraine’s electricity network is an immediate priority for the EBRD. The Ukrainian people and businesses need continued access to electricity to go through the winter. With this important financing, we will help Ukrenergo perform swift emergency repairs of damaged equipment, high voltage substations and transmission lines. It will ensure the continued provision of vital power transmission services during the heating season for Ukrainian households, businesses and communities,” said EBRD President Odile Renaud-Basso.
“The EBRD condemns in the strongest possible way the unprovoked and unjustified Russia-led war on Ukraine and especially the strikes on civilian infrastructure,” the message reads.

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Repair crews of Ukrenergo working to eliminate consequences of attack on energy infrastructure facilities

Repair crews of NPC Ukrenergo are already working to eliminate the consequences of a Russian terrorist attack on energy infrastructure facilities in the central and northern regions of Ukraine.
“The situation in the power system is under control. However, the Ukrenergo dispatch center does not rule out the possibility of introducing emergency shutdown schedules. Therefore, it is important to save electricity consumption throughout the country, especially in the evening hours,” the company said in a statement.

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POLISH COMPANIES PROVIDE UKRAINE WITH EQUIPMENT TO RESTORE ENERGY INFRASTRUCTURE

Companies belonging to the Polish Electricity Transmission and Distribution Association have provided Ukraine with auxiliary materials and equipment to carry out work to restore the energy infrastructure damaged as a result of Russian aggression, according to the website of the Ministry of Energy of Ukraine on Tuesday.
“Due to the destruction caused by the hostilities, we see the need to support the energy system with materials and equipment, which will allow the resumption of electricity supplies in the most strategic directions,” president of the Polish Electricity Transmission and Distribution Association Robert Zasina said in a letter to the Minister of Energy of Ukraine, cited by the department.
As explained in the energy department, members of the association launched a campaign to help Ukraine last week. Among the equipment provided are the most necessary, in particular low and medium voltage cables with auxiliary materials, medium/low voltage transformers, power generators and other types of equipment.
“I would like to express my special personal gratitude to Minister of Climate and Environment of Poland, Anna Moskwa, for her unwavering support for Ukraine, both on the political front and for real actions to strengthen our energy security,” Herman Haluschenko said.
According to the Ministry of Energy, the Polish energy sector will send the next batch of aid to the Ukrainian energy sector in the near future.
Transportation of goods for Ukraine is coordinated and organized by the Polish Government Agency for Strategic Reserves.

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