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illegal instructions from government representatives on payments to renewable energy producers.” GarPok has directed UAH19.3bn, received from state company Ukrenergo (NPCUKR), to repay its arrears to green power producers, Petrykovets commented. However, the payment has been blocked by state-owned Oschadbank (OSCHAD), Petrykovets told a TV Channel on November 13. Oschadbank commented on November 15 that all its payments are processed in the regular way. According to Petrykovets’ comment of November 15, as of late November 12, only UAH5.6bn out of UAH19.3bn were directed to green renewables, and the distribution of funds was not proportional, Interfax-Ukraine reported.
According to zn.ua news site, Petrykovets became the victim of a conflict between president Volodymyr Zelenskiy and the richest Ukrainian, Rinat Akhmetov, who owns about 1⁄4 of all renewable power producers in the country. The government allegedly is trying avoid repaying GarPok's debt to Akhmetov’s companies. By law, GarPok cannot discriminate any green power producer.
Recall, Ukrenergo issued “green” Eurobond in early November for $825mn (UAH22.8bn equivalent at the pricing date). The raised funds were planned to be used to repay Ukrenergo’s debt to GarPok, which should direct all the funds to repay its debt to renewable energy producers. In this way, the bond proceeds would be used for financing renewable energy producers.
The Cabinet explained its decision to dismiss Petrykovets due to a “lack of professionalism and causing losses to” GarPok and the state for over UAH500mn, Interfax-Ukraine reported on November 13 citing the Cabinet’s press release. The losses were caused by selling electricity “at deliberately low prices for the benefit of a certain financial and industrial group.” Energy Minister Herman Haluschenko told a press briefing on November 15 that all the money raised by Ukrenergo from the Eurobond placement would be directed solely to green energy producers.
The Cabinet’s reasoning does not explain why it held the extraordinary meeting on Saturday to dismiss Petrykovets. Such circumstances make us believe the allegation made by Petrykovets is much closer to reality than the Cabinet’s.
According to local media, the conflict between Akhmetov and Zelenskiy intensified with the adoption of the bill on oligarchs which will affect Akhmetov. Akhmekov’s media started actively criticizing Zelenskiy over the last month, which might be one of the reasons for the latter's rating decline based on recent polls (at least, he/his entourage can explain the decline by this). If Zelenskiy indeed has decided to use the delay of GarPok payment to Akhmetov as a tool for pressuring him, this does not look like a wise move. Most of the other affected green producers are international investors, while among the buyers of the recent “green” Eurobond there is EBRD. Discrimination against certain green producers is not allowed. The status of Ukrenergo’s bond as “green” and “sustainable” can be questioned with such government’s moves.
Most likely, in the coming hours/days, the issue will be resolved, though the likelihood remains that DTEK Renewables (DTEREN) of Akhmetov will be discriminated against.
8 UKRAINE Country Report December 2021 www.intellinews.com