Ukrainian Economy Digest
Dear subscribers, Ukrinform presents a daily bulletin of news that affects the economy of Ukraine and its future "Economic News"
To subscribe to the advanced version, contact our manager here: skorik@ukrinform.com
Energy
Yasno CEO: DTEK lost 50% of its generating capacity following Russia's Mar 22 attack
DTEK Group has lost about half of its generating capacity due to Russia's large-scale missile and drone attack on Ukraine's energy system on March 22.
That's according to Yasno CEO Serhii Kovalenko, Ukrinform reports, citing Radio Free Europe/Radio Liberty.
"DTEK Group has lost 50% of its generating capacity. We can officially provide this information," he said on Ukrainian television.
According to Kovalenko, Russian forces attacked the generating and distribution parts of the Ukrainian power grid.
"Several types of generating capacities were hit. A large number of thermal power plants and a hydrogen generating facility were hit. The second part is that the enemy struck a lot of Ukrenergo network nodes, transformers. [...] This attack simultaneously destroys the system's ability to transmit electricity and decreases our generation capabilities," Kovalenko said.
He specified that it would take several days "to assess the timing of restoration and the funds needed for this."
The restoration itself, according to Kovalenko, will take "not a day, not a week and even not a month, it will take months."
He also suggested that there might be a shortage of electricity this summer, "because Ukraine will not be able to produce enough of it."
Volodymyr Kudrytskyi, head of Ukraine's National Power Company Ukrenergo, earlier said that the latest Russian attack on Ukraine's energy facilities had caused losses of at least 100 million euros.
International support
PM Shmyhal: Ukraine receives $880M from IMF under EFF Arrangement
Ukraine has already received a tranche of $880 million from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) Arrangement.
The relevant statement was made by Ukrainian Prime Minister Denys Shmyhal, an Ukrinform correspondent reports.
“Today, Ukraine has received $880 million from the IMF. It is the third tranche of financial assistance under the EFF Arrangement,” Shmyhal wrote.
In his words, the above funds will help Ukraine to cover the priority budget expenditures and maintain macrofinancial stability.
The Prime Minister emphasized that Ukraine continues to successfully fulfill its commitments to the partners.
“We are already preparing for the next review of the program. We are grateful to the IMF for its support and cooperation,” Shmyhal added.
A reminder that the four-year Extended Fund Facility (EFF) Arrangement, totaling $17.5 billion, has been a core element of the Ukrainian Finance Ministry’s plan to stabilize the country’s economy and lay the basis for its recovery since 2016.
The EFF is designed to increase the reserves of the National Bank of Ukraine (NBU), to stop the exodus of capital, to enhance the measures taken by the Ukrainian government to stabilize the country’s balance of payments, as well as to help Ukraine overcome structural problems in its economy by implementing overdue reforms.
Within the EFF framework, Ukraine has already finalized a number of substantial changes in the energy and banking sector, as well as changes aimed to increase the NBU’s independence, remedy the public finances, reform the sector of state-owned companies, and counteract corruption.
Transport
Minister Kubrakov expects Latvia’s airBaltic to be among first to re-enter Ukrainian market
The team of the Ukrainian Communities, Territories and Infrastructure Development Ministry has met with the representatives of Latvia’s flag carrier, airBaltic.
The relevant statement was made by the ministry’s press service on Facebook, an Ukrinform correspondent reports.
“The discussion focused on the support of Ukrainian airports during the forced downtime, as well as airBaltic’s strategic plans to resume operations in the Ukrainian market after the airspace opens for civilian flights,” the report states.
Ukrainian Deputy Prime Minister for Restoration, Minister for Communities, Territories and Infrastructure Development Oleksandr Kubrakov expressed hope that Latvia’s airBaltic would be among the first to re-enter the Ukrainian market as soon as the security situation allows.
Since 2019, airBaltic has carried more than 300,000 passengers from Ukraine’s Boryspil Airport and Lviv Airport. The company offers flights to more than 70 destinations in Europe, the Middle East, North Africa and the Caucasus.
A reminder that Ukraine is starting talks with the U.S. and European market regulators to resume international air services. However, no deadlines have been disclosed yet.
