Page 68 - UKRRptNov21

confidence of private investors and financiers.”
The bonds will cover 87% of the state electricity transmission system’s $950 million debt to renewable producers, calculates Concorde Capital. “The placement rate implies a 68 bps spread to [Tuesday’s] Ukraine sovereign curve,” Concorde wrote yesterday.
Noting that €11 billion was invested to create 8.5 gigawatts of renewable energy capacity, Matteo Patrone, the bank’s regional Managing Director, said: “The EBRD is proud to play a key role in resolving the difficult situation in the sector and in helping Ukraine demonstrate the resilience, stability, and predictability of its investment climate.” Over the last five years, the EBRD helped to finance numerous wind, solar and biogas energy projects in Ukraine.
Belgium’s, SREW NV, 75% owner of €188 million Kherson windfarm, filed suit against Ukraine last week for cutting the ‘green’ tariffs in 2020, reports EcoTown news portal. The appeal for arbitration is the second filed this year through the International Center for the Settlement of Investment Dispute, a World Bank-funded organization. Last March, a Lithuanian company, Modus Energy International BV, filed for arbitration over the retroactive reduction in ‘green’ tariffs paid to producers. The amount of the Modus claim is estimated to be at least €11.5 million.
"Guaranteed buyer" settled with producers of "green" energy by 43.8%.
In October, the State Enterprise "Guaranteed Buyer" settled with producers of electricity from renewable energy sources (RES) by 43.8%. The "Guaranteed Buyer" transferred over UAH 1 bln ($38 mln) to producers from renewable sources. Thus, the company paid proportionally for the electricity generated during the first 10 days of the month and provided the calculation at the level of 43.8%, "the statement reads.
Ukraine may get $1.5bn in economic benefits after joining the European power grid reported UkrainianJournal. “The World Bank estimates that the integration of the Ukrainian energy system with ENTSO-E will be $1.5bn annually and be a step towards Ukraine's energy independence," said Prime Minister, Denys Shmyhal. The Prime Minister also expressed hope that the integration process will be completed no later, or even earlier than 2023, as planned.
9.1.11 Metallurgy & mining sector news
Falling world prices are slowing Ukraine’s iron and steel boom, reports Alfa-Bank Ukraine and other analysts. Daily steel production averaged 56,800 tons – 5% below the levels of July and August, reports UkrMetalurgProm. On the export side, steel exports were still up 127% yoy in September. Iron exports fell sharply compared to August, but were still up 22% yoy in September.
Alfa-Bank writes of metals and mining, Ukraine’s second largest export sector, after food: “It is very likely that we will see very impressive slowdown here soon as lower prices spread into actual deals.” Compared to this time last year, steel prices are up 46% and iron ore prices are down 5%, Alfa reports.Through September, exports of ferrous metals were up 80% yoy, to $10.3 billion, reports the State Customs Service. During the period, exports of metal products were up by 33% yoy, to $870 million.
68 UKRAINE Country Report November 2021 www.intellinews.com