Russian War Against Ukraine: Energy Dimension (daily updating DiXi Group alert)
February 21
Summary
— Energoatom reported that the occupiers placed more than 600 military in the bomb shelter of the Zaporizhzhia NPP, set up a machine-gun position on the roof of the ZNPP unit 5, placed roadblocks, and continue building fortifications around the plant’s units and the dry spent nuclear fuel storage facility. Ukrainian personnel and representatives of the IAEA were denied access to the facility.
— Meanwhile, the planned rotation of three IAEA experts has been postponed for more than two weeks. The Ministry of Foreign Affairs of Ukraine reported that Russia blocks any attempts.
— According to Ukrenergo, on February 21, there is no capacity deficit in the power system and it is not currently forecasted. As a result of bad weather conditions, there is damage to distribution networks and disruption of electricity supply in a number of regions. In the city of Odesa and the Odesa district, due to damaged equipment at substations, network restrictions still apply.
— On the day of Joe Biden’s visit to Kyiv, the U.S. Secretary of State Anthony Blinken authorized an additional 10 million USD as emergency assistance to keep Ukraine’s energy infrastructure up and running.
— The project to build units at Ukrainian NPPs by Westinghouse is underway – so the Minister of Energy Herman Halushchenko. According to him, Westinghouse has started work on the production of two units.
— Also, according to Halushchenko, by the next heating season, the Kharkiv region will increase electricity production through the development of gas turbine or gas piston generation. A single gas turbine facility (22-50 MW of capacity) can power critical infrastructure facilities in case of a missile attack.
— Director of Ukrnafta PJSC and Ukrtatnafta PJSC Serhii Koretskyi informed about the gradual repayment of the tax debts (excise duty and VAT). At the same time, since previous periods, a significant shortage of oil and oil products (hundreds of thousands of tons) has been reported. 20 billion UAH in uncollectible receivables for oil products were also discovered.
— Ukrnafta also aims to propose a new approach to calculating and paying royalties for subsoil use (similar to the applicable conditions for natural gas production). In addition, the company is negotiating the exports of oil or its supply under the tolling scheme, plans to drill 3 wells in 2023 and carry out preparatory work for drilling another 8 wells next year, audit its upstream assets.
— The CEO of Naftogaz Oleksii Chernyshov estimated the loss of assets due to the war at 1 billion USD, the most significant loss being the Shebelynka gas processing plant and its tank farm. He also expects natural gas production in Ukraine to reach 19 bcm in 2023.
— For more than six months, the Verkhovna Rada has not put to a plenary vote the draft resolution on sectoral economic sanctions on Russia – Trap Aggressor (a StateWatch project) analysts.
