Russian Ukrainian Electricity Trade


Effects of enabling electricity imports from Russia and Belarus:

  • Lower coal consumption in Ukraine → allowing higher coal stocks in Ukraine and hence increasing supply security
  • Reduced emissions, as typically Ukrainian coal plants are replaced by gas-fired units
  • Increased competition in the electricity market → allowing electricity supply from Russia contests the market power in the highly concentrated Ukrainian market → can lower electricity prices disproportionally
  • Possible revenues for the Ukrainian state → introducing import quotas allows the state to participate in the excess revenues from importing “cheaper” electricity from Russia
  • Loss of revenues for Ukrainian generators → Lower prices and volumes reduce cash flow which could in principle be invested
  • Increasing dependency on Russia
Dr. Georg Zachmann, Julia Breuing

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