Russian War Against Ukraine: Energy Dimension (daily updating DiXi Group alert)
March 20
Summary
— On the night of 17 March, the Russian military attacked Ukraine with drones. The defence forces destroyed 11 of the 16 UAVs, yet 2 drones impacted a critical infrastructure facility in Novomoskovsk (Dnipropetrovsk region).
— According to Ukrenergo, due to significant damage to the grids, restrictions are applied in the Zhytomyr region. Also, subject to significant increase in consumption, restrictions are possible in the Kyiv region and the city of Kyiv.
— The Cabinet of Ministers approved Dmytro Lyppa as the General Director of Gas Transmission System Operator of Ukraine LLC. Before, Lyppa was the CEO of Kametstal metallurgical plant (Metinvest Group). Meanwhile, the Energy Community Secretariat has concerns about the financial condition of GTSOU and considers it necessary to liquidate its parent company (Mahistralni Gazoprovody Ukrainy JSC).
— The Security Service and the Economic Security Bureau conducted searches at offices of 16 gas DSOs and RGC group. Reports say about the illegal use of tariff revenues for the purchase of gas to cover production and technical losses, with losses to the state at almost 3.5 billion UAH (in 2021 only). At 2 DSOs, new management was appointed by Naftogaz (as its subsidiry was granted management rights of seized shares). RGC believes the searches were carried out on false charges, and the change of management is a raider capture.
— Euro-Reconstruction LLC, operator of the Darnytska CHP, denied the media reports about the alleged sale of coal from state-owned mines at discounted prices. The Ministry of Energy asked the media to refute the inaccurate information presented in the relevant article.
— The President signed the law on development of high-efficient cogeneration. Inter alia, it provides for the introduction of guarantees of origin for electricity produced by such units.
— As part of the green transition, Ukraine is considering construction of up to 20 small modular reactors to replace TPP units destroyed – so the Minister of Energy Herman Halushchenko.
— Energoatom and Cameco signed contracts to expand cooperation. Under the first agreement, Cameco will cover 100% of Energoatom’s demand for uranium hexafluoride (UF6) in 2024-2035 by supplying it and conversion services. The second agreement provides for the sale by Energoatom of uranium mined by SkhidGZK.
