The government has left a preferential gas tariff for the population, the FDMU has created a Land Bank
Energy sector
The government has left the current gas tariffs for heat producers and the population unchanged. August 23, 2024 Cabinet continued special responsibilities (PSOs) for the supply of gas to thermal communenergo enterprises, gas distribution companies and electricity producers until the end of the next heating season [April 30, 2025 – SOE Weekly].
According to "Naftogaz", as before, household consumers can buy a cubic meter of gas (according to the tariff plan "Fixed") for UAH 7.96 (EUR 0.17), including VAT.
Other gas tariffs also remain unchanged (all tariffs below include VAT):
- for the production of thermal energy for the population – UAH 7.42 (EUR 0.16);
- for the production of thermal energy for budget institutions – UAH 16.39 (EUR 0.36);
- for the production of electricity in the condensing cycle [electricity produced from water vapor – SOE Weekly] – UAH 10.5 (EUR 0.23);
- for electricity generation in the heat cycle – UAH 16.5 (EUR 0.36).
[As we reported earlierOn April 23, 2024, a subsidiary of Naftogaz, Gas Supply Company (GC) Naftogaz Ukraine, announced the extension of the Fixed tariff plan for another year.
How are we wrote in December 2023, Economic Truth (EP) reported that, according to USAID, the overall level of unregulated debt in the gas market at the beginning of September 2023 exceeded UAH 190 billion (EUR 4.77 billion at that time).
According to the National Commission for State Regulation in the Fields of Energy and Utilities (NKREKP), which was reviewed by the EP, as of October 1, 2023, the total debt exceeded UAH 200 billion (EUR 5.11 billion at that time).
"Our goal – by the fourth quarter of 2025 is to gradually move to economically sound energy tariffs and abolish all JI. This should be done in a complex with the planned settlement of debts in the gas market and TKE, – said then Deputy Minister of Community Development, Territories and Infrastructure Alexander Butenko. Read more about this in one of ours previous digests. – SOE Weekly.]
Ukrenergo has temporarily resumed planned power outages for people across the country. August 18, 2024 "Ukrenergo" reported, which returns the planned restrictions on electricity consumption.
The main reason – is the consequences of massive Russian attacks on energy objects in March-June 2024. Situational reason – increase in air temperature above 30°C: due to increased consumption in hot weather, there is a growing shortage in the power system, and there is no capacity to cover it, explained in the company.
Ukrenergo applied scheduled outages on August 19, 20 and 21, 2024. Then the company canceled shutdown in the coming days due to lower temperature and early completion of planned repairs on one of the nuclear power units.
[From March 22 to June 19, 2024, Ukraine suffered six massive missile and drone strikes on power plants. Read more about this in our previous digests.
On May 14, 2024, Ukrenergo introduced controlled emergency power outages for industrial and household consumers in all regions of Ukraine during the evening maximum load. The electricity supply of critical infrastructure facilities was not limited, the company said. Read more in one of ours previous digests.
Two weeks later, Ukrenergo temporarily refused from hourly shutdowns, as the repair of two nuclear power units was completed. Chairman of the Board of Ukrenergo Vladimir Kudrytsky then explainedthat the lack of hourly power outages in the last days of May was temporary, and soon the situation will worsen again, as some units of nuclear power plants will be repaired.
In July 2024, Ukrenergo temporarily returned to mass outages due to heat and repair of power units. Disconnection stopped July 30, 2024. – SOE Weekly.]
Ukrenergo is resuming electricity exports. August 23, 2024 "Ukrenergo" reported, which since August 25 restores electricity exports to neighboring countries.
A significant reduction in consumption due to lower temperatures and early completion of planned repairs at one of the nuclear power units created a surplus in the Ukrainian energy system during the day, the company explained.
According to "Ukrenergo", the power system must work in a balanced way – the amount of energy produced at any time must correspond to the amount consumed.
You can overcome the surplus in two ways:
- restrictions on the generation of Ukrainian solar power plants;
- resumption of electricity exports during the day.
As it is economically impractical to limit the operation of solar power plants, Ukrenergo decided to resume electricity exports from August 25. Exports will only take place during periods of surplus, when solar power plants are active. During periods of peak consumption, when the power system lacks capacity, electricity from Ukraine will not be exported, noted in the company.
[From March 22 to June 19, 2024, Ukraine suffered six massive missile and drone strikes on power plants. Read more about this in our previous digests.
The massive shelling caused a shortage of power in the power system, which led to the introduction of power outage schedules (see above). Only in June 2024 Ukraine imported more electricity than in 2023, without exports. – SOE Weekly.]
Privatization
Interview with the head of the SPF. SPF Chairman Vitaly Koval gave an interview liga.net this week. We chose the key points:
About large privatization:
- According to Koval, this year the FDMU plans to put the first five [large] facilities on privatization. In addition to the already announced auctions for the sale of the hotel "Ukraine" and "United Mining and Chemical Company" ("OGHC"), in the fall the Foundation plans to put up for sale the plant "AEROC". The SPF completed preparations for the auction, setting the starting price at more than UAH 965 million (EUR 21 million). Now the Cabinet of Ministers must approve this price and other conditions of privatization.
[As we reported earlier, The SPF has announced the first two major privatization auctions in the Prozorro system. Sales: for the hotel "Ukraine" and "OGHC". The auction for the sale of the hotel "Ukraine" is scheduled for September 18, 2024, and the auction for the sale of OGHC – on October 9, 2024.
As we wrote earlier, the FDMU plans to privatize the construction materials manufacturer AEROK, which previously belonged to the sub-sanctioned Russian oligarch Andrei Molchanov. Read more about this in our previous digests.
We later reported that the Cabinet of Ministers added two more nationalized Russian companies to the list of objects of large-scale privatization: "AEROK" and the Demurin GOK. – SOE Weekly.]
About privatization "OGHC":
- According to Koval, "OGHC" is now in a stable position, continuing to produce and export their products. A positive signal is that in the first half of 2024, the plant ended with a net profit, he added. The FDMU chairman noted that the international adviser to BDO Corporate Finance confirms the interest of investors and the high chances of a successful auction: there is considerable interest from potential investors from around the world, including the United States and Australia.
- Koval also explained why they decided to sell the Demurin GOK separately from "OGHC". According to him, "OGHC" is completely ready for privatization, and the addition of GOK would delay the auction and lead to a loss of precious time. Also, according to Koval, after consulting with potential investors of the SPF saw that there is no need to combine these two assets. In addition, there is a financial reason for a separate sale. Sales funds "OGHC" send to the state budget, and funds from the sale of GOK – to the Fund for the Elimination of the Consequences of Armed Aggression. This will make more efficient use of these funds and ensure their direction to rebuild the country, Koval explained.
[As we are reported earlier, the SPF planned to privatize GOKHK as one of the first large companies. Read more about previous attempts to sell "OGHC" in our previous digests.
However, like us wrote later, in late October 2023, the then Acting FDMU Chairman Alexander Fedorishin said that the FDMU intends to offer investors to buy "OGHC" in a single package with the Demurin GOK.
Vitaly Koval, the newly appointed head of the FDMU, confirmed this later in one of the interviews (read one of our previous digests).
Later we did wrotethat the Foundation seems to have abandoned the idea of selling GOKHK and Demurin GOK in one lot. – SOE Weekly.]
About the Land Bank:
- According to Koval, the implementation of the project – at the finish line. On August 30, 2024, the FDMU plans to announce the first auctions for the lease of agricultural state land – they will take place in late September 2024, he added.
[As we are reported in June 2023, the SPF is developing plans to centralize state property management, which provide for the establishment of a Land Bank.
Later we do wrotethat on August 11, 2023, the Cabinet of Ministers handed over to the FDMU 25 state-owned enterprises that were previously under the control of the National Academy of Agricultural Sciences.
Later, the Cabinet of Ministers took from state-owned enterprises 2,764 agricultural land plots with a total area of more than 104,000 hectares. Control over them was transferred to the Agricultural Investment Fund under the management of the SPF (read more in one of our previous digests).
The SPF then announced that preparations for the creation of the Land Bank had been completed. The next step was to corporatize the Agricultural Investment Fund so that it could act as a land auction operator.
Starting from July 1, 2021, citizens of Ukraine can legally buy and sell agricultural land. However, the purchase and sale of state and communal property remains under the ban. – SOE Weekly.]
The SPF's attempt to sell the state share of ZalK failed for the third time. According to data Prozorro. Sales, the auction with a starting price of UAH 76 million (EUR 1.7 million) was planned on August 22, 2024, but did not happen due to lack of participants.
This was the third attempt to sell a state share of 97.5% of the shares of the "Zaporizhzhya Production Aluminum Plant" ("ZalK").
The SPF announced an auction for the privatization of ZalK on August 1, 2024 with a starting price of UAH 152 million (EUR 3.35 million). The first auction was planned on August 6, 2024, but he is did not happen due to lack of participants. Read more about it in ours previous digest.
The second auction was planned on August 14, and the starting price was halved to UAH 76 million (EUR 1.7 million), but it did not take place for the same reason.
Belgorod-Dniester Port interested Polish investors – will be another attempt at privatization. According to data Prozorro. Sales, The State Main Fund (FDMU) has scheduled an auction for the sale of the Belgorod-Dniester Sea Trade Port on September 6, 2024. Starting price is UAH 178 million (EUR 3.9 million).
According to the former Deputy Minister of Infrastructure Victor Dovgan, Polish investors are considering participating in the privatization of the port.
This will be the ninth attempt to sell the port, says liga.net.
[The first auction on the privatization of the Belgorod-Dniester Port in March 2023 did not take place because no one registered for it.
At the second auction, the port was sold for UAH 220 million (EUR 5.6 million at the time) to Ukrdoninvest LLC, owned by Ukrainian businessman Vitaly Kropachov. However, Ukrdoninvest did not pay the funds.
How are we wrote, the company stated that it refused to buy at the stage of coordination of the terms of the contract of sale with the regional branch of the SPF in Odesa and Mykolayiv regions.
The SPF later announced that it would put the Belgorod-Dniester port on privatization for the third time, but this auction also did not take place (see one of ours previous digests).
Later we do reported about subsequent unsuccessful attempts to sell the port. More details read in our previous digests. – SOE Weekly.]
The SPF completes the creation of the first state Land Bank. August 22, 2024 of the SPF reported, which completed the corporatization of the Agricultural Investment Fund, creating on its basis Ltd. "State Land Bank".
It is the first state operator of agricultural land, it is 100% state-owned. This is the final stage of implementing the project "Land bank" before the official launch of the first online auctions for the lease of state lands, explained in FDMU.
[As we are reported in June 2023, the SPF is developing plans to centralize state property management, which provide for the establishment of a Land Bank.
Later we do wrotethat on August 11, 2023, the Cabinet of Ministers handed over to the FDMU 25 state-owned enterprises that were previously under the control of the National Academy of Agricultural Sciences.
Later, the Cabinet of Ministers took from state-owned enterprises 2,764 agricultural land plots with a total area of more than 104,000 hectares. Control over them was transferred to the Agricultural Investment Fund under the management of the SPF (read more in one of our previous digests).
The SPF then announced that preparations for the creation of the Land Bank had been completed. The next step was to corporatize the Agricultural Investment Fund so that it could act as a land auction operator.
Starting from July 1, 2021, citizens of Ukraine can legally buy and sell agricultural land. However, the purchase and sale of state and communal property remains under the ban. – SOE Weekly.]
No comments:
Post a Comment