Ukrenergo Counting Cost of Ukraine Russia Troubles
- New Europe Investor
- June 16, 2015
Ukrainian national energy company, Ukrenergo is assessing the damage and what actions to take over the Russian annexation of Crimea last year.
The company’s CEO, Yuriy Kasich said that it has lost 1.44 billion hryvnia (€57 million) due to Russia’s annexation of Crimea.
He added that this amount is only what the company would be allowed to claim for, and does not include potential future losses.
Kasich also said the company has lost a training centre for its employees that it will now need to replace among other elements to the company’s infrastructure.
Ukrenergo can no longer subsidise electricity supplies to Russian held territories of Eastern Ukraine and Crimea, says the CEO. However, he did not make any suggestions as to the company’s next move.
The European Bank of Reconstruction and Development, EBRD is investing €65 million into the company to fund construction of a substation in the country and to link it to the power grid.
It is one of 344 projects they are currently funding in the country.