State investments in start-up capital of JSC Energy Company of Ukraine, provided to it in August by Energoatom in the form of repayable financial assistance in the amount of UAH 500 million, will be returned before the end of 2022 and may, according to ECU estimates, bring state-owned companies UAH 8.2 billion in revenue.
“Providing financial assistance for the start-up capital of new state-owned business evens out competition in the energy sector and gives a positive multiplier effect for the state segment and the energy market as a whole,” Vitaliy Butenko, the state energy trader’s CEO, is quoted in a press release.
He added that private traders periodically receive financial assistance from the owners, parent companies, related banks and enterprises, so now the state-owned company works on equal terms with them.
According to the data provided by ECU, contributions to three state-owned companies amounted to UAH 1.542 billion from the beginning of the trader’s work on August 19 to September 13, in particular, Ukrenergo – UAH 1.167 billion, Guaranteed Buyer – UAH 164 million and Energoatom – UAH 211 million.
According to ECU forecasts, these volumes will increase to UAH 8.22 billion by the end of the year.
The state energy trader noted that it buys all of Energoatom’s electricity on market terms through the Ukrainian Energy Exchange (UEEX).
“The state is strengthening its positions in the field of trading in energy resources and increasing competition … The state has shown that it can earn money for the benefit of the market and competition,” Butenko said.
ECU is a diversified energy supply company that carries out operations for the purchase, sale, supply and market optimization of energy consumption for commercial customers. Now the company supplies for export, however, it plans to work also in the domestic market. Some 100% of the company’s shares belong to the state, the powers to manage them are exercised by the Ministry of Economy.