Ukraine has excellent energy export potential. What’s standing in the way?

To build new energy-generation facilities in Ukraine, it is necessary to create conditions for investment in the energy industry, noted economist Kyrylo Kryvolap. He added that Ukraine has great export potential despite losses of production capacity through the war’s destruction. This is a crucial currency gain for the state and an opportunity to support the EU’s energy security.

“For this, it is time to cancel the export PSO, through which 80% of export revenue goes to the state and only 20% to the exporter, which, due to the price reduction in the EU, makes exports financially unattractive for business,” he noted.

Kryvolap also added that the Ukrainian energy market can potentially change price restrictions (price caps) in the European manner.

“Power engineers are now prioritizing preparation for the next heating season, scheduled repairs, and construction of a decentralized energy system. But without creating generally favorable conditions for investment, progress on the introduction of new capacities will not be achieved,” he believes.