Ukraine’s energy sector is undergoing changes with Ukrtransgaz starting the season of gas injection into underground storage facilities. Foreign traders have utilized Ukraine’s storage facilities, earning around $320 million. Naftogaz aims to increase gas storage capacity further in 2024. Additionally, Ukrnafta reported substantial net profits in 2023, with dividends being double the total paid over the last ten years. The company’s financial statements are expected to be published by April 30, following a temporary exemption from disclosure due to the ongoing conflict with Russia.
The European Council has agreed to extend the suspension of import duties and quotas on Ukrainian exports to the EU until June 2025, with new restrictions on agriculture products. The Cabinet of Ministers has directed Ukrnafta to allocate a portion of its net profit for dividends while using the remaining amount for approved capital investments. Furthermore, Chornomornaftogaz has paid dividends for 2022, indicating progress in managing seized assets. The parliamentary committee has also supported measures to strengthen oversight in the gambling industry.
European operators will now compensate Ukrenergo for electricity transit costs, relieving Ukrainian market participants from this financial burden. Ukrenergo will utilize these funds for infrastructure development. In the privatization sector, the head of the State Property Fund of Ukraine (SPFU) discussed plans for 2024, including the privatization of assets like hotels and large-scale companies like UMCC. The SPFU aims to fill the state budget through successful privatization auctions and lease agreements.
French billionaire Xavier Niel is set to acquire two Ukrainian telecoms companies in a significant acquisition worth over $1 billion. The state’s seizure of various companies, including those related to Firtash, has led to changes in management and financial reporting. Naftogaz’s integration of regional gas companies has established the company as a monopoly in gas distribution, with plans for future privatization. Despite challenges and legal disputes, the SPFU remains focused on privatization efforts to generate revenue for the state.
Eleven Ukrainians have been recognized in the Forbes 30 under 30 Europe list across various categories, highlighting the country’s talent and innovation. The ongoing conflict and geopolitical tensions with Russia continue to shape Ukraine’s economy and business landscape, with efforts to strengthen industries and attract investment. As Ukraine navigates these challenges, support for independent journalism and transparency in reporting remains essential to foster accountability and trust in the country’s economic developments.
