Russian War Against Ukraine: Energy Dimension | DiXi Group Alert – weekly review 16.01.2024

January 8-14

Summary

As of January 15, 373 settlements were without electricity due to hostilities and technological disruptions. Inter alia, on January 8, drone attack damaged a wind turbine at the 5.5 MW power plant in the Odesa region.
The enemy continues to regularly take satellite imagery of Ukraine’s energy facilities to conduct strikes if necessary – so the Defence Intelligence of Ukraine. The Security Service of Ukraine detained a saboteur who was supposed to coordinate Russian air attacks on Ukraine’s energy infrastructure.
The situation with regular maintenance and repair of the occupied Zaporizhzhia NPP is deteriorating, there is no systemic approach and scheduled maintenance of the safety systems equipment – so the Acting Chair of the State Nuclear Regulatory Inspectorate Oleh Korikov.
Electricity imports increased to 31.1 GWh, which is 5 times more week–on–week.
The Regulator has started analyzing and studying information and materials related to the atypical behavior of certain DAM and IDM participants, which led to significant price fluctuations in these segments of the electricity market in early January.
The National Anti–Corruption Bureau and the Specialized Anti–Corruption Prosecutor’s Office exposed a scheme to seize electricity and legalize the proceeds from its sale. It is about electricity purchased in March 2022 by United Energy LLC (at that time, one of the largest traders) from Ukrenergo.
Natural gas withdrawals from storage increased by 61% and averaged at 93.9 mcm per day. On January 9, gas withdrawals exceeded 100 mcm/day for the first time in more than two years.
The Cabinet of Ministers lifted the ban on the termination of housing and utilities services, the accrual and collection of penalties and debts in case of non–payment. The moratorium still applies to consumers whose facilities are located in the occupied territory, in the area of hostilities, or whose facilities were destroyed as a result of hostilities.
2024 was designated as the year of climate dialogue, so the Minister of Environmental Protection and Natural Resources Ruslan Strilets. The Ministry of Environment is preparing the draft law “On the Basic Principles of Public Climate Policy”.
The government introduced to the Verkhovna Rada a draft law, which envisages setting comprehensive powers of the State Inspectorate for Energy Supervision in supervision of the technical condition and organization of the operation of heat, heat–using installations and networks. Another draft provides for redistribution of powers in the field of energy efficiency.
The Asset Recovery and Management Agency (ARMA) initiated cancellation of government orders and the termination of contracts with Ukrnafta regarding the management of arrested chain Glusco and the assets of Tatneft. Reasons mentioned are avoidance of Ukrnafta from signing the act of acceptance and transfer of assets, thus lack of any revenues for the state budget.
The U.S. Special Representative for Ukraine’s Economic Recovery Penny Pritzker discussed with Ukrainian stakeholders investment opportunities, development of logistics routes and public–private partnerships.