Partnerstwo polityczno-oligarchiczne. Stan i wyzwania sektora elektroenergetycznego Ukrainy
Political-oligarchic Partnership. State and Challenges of Ukraine's power sector

Author(s): Tadeusz Iwański, Arkadiusz Sarna
Subject(s): Energy and Environmental Studies, Environmental and Energy policy, Corruption - Transparency - Anti-Corruption
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Ukrainian energy sector;energy;oligarchic system in Ukraine;Ukrainian-Russian relations;
Summary/Abstract: The attention of analysts dealing with the Ukrainian energy sector has so far focused mainly on the gas sector, due to the strategic nature of this segment of the economy and Ukraine's relations with Russia. Meanwhile, the war in the Donbass, which paradoxically accelerated the processes of healing this sector and making Ukraine independent of gas supplies from Russia, revealed hitherto unnoticed problems and weaknesses of the Ukrainian power industry. In the spring of 2014, the authorities in Kiev lost control over the anthracite coal deposits and part of the production potential located in the Donbas undermined the foundations for the functioning of the power complex, which were formed in the mid-1990s. In this sector, where financial flows are estimated at USD 8 billion a year, the interests of the state and oligarchs intertwine, which is often an important element of behind-the-scenes agreements of key importance for Ukraine's development. This dependence is the main reason for the lack of fundamental reform of this sector. In the medium term, this may result not only in the loss of opportunities related to the potential of the sector, but also in the collapse of the system, the consequences of which - political, social and financial - will be difficult to predict.

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