Ukraine tentatively green lights $970 mln in deals for energy trader ECU

MOSCOW. Aug 6 (Interfax) - Ukraine's State Property Fund has decided to tentatively grant approval for the Energy Company of Ukraine (ECU) to carry out major transactions worth up to UAH39.94 billion combined (over $970 million at current exchange rate) in the course of the year, Ukrainian media reported, citing a statement the state energy trader posted in the National Securities and Stock Market Commission's disclosure system.

The list of major transactions includes electricity transmission services worth up to UAH277 million; regulating power imbalances totaling UAH5.4 billion; participating in the distribution of the capacity of Ukraine's international power grids totaling UAH170 million; participating in the day ahead market and intraday market, purchase-sale of electricity on these markets and under bilateral contracts, including with nonresidents of Ukraine and for export-import operations, and organizing and holding electronic auctions to sell electricity under bilateral contracts totaling UAH11.4 billion; and a number of other services.

The list also includes contracts with Ukrainian and foreign energy market entities up to a combined amount of UAH9.25 billion.

The tentative approval also extends to a number of contracts with banks, specifically on bank guarantees for contracts on the electricity and natural gas markets and others worth up to UAH10.66.

The company said its assets totaled about UAH1.8 billion, according to the latest financial statement.

ECU, founded in the summer of 2022, is a national energy trading company that purchases, sells and supplies energy resources, including through imports and exports. It is one of the five largest traders in Ukraine by electricity sales. The company, which is wholly owned by the state through the Property Fund, more than quadrupled its net profit to UAH148.9 million in 2023.

The official exchange rate was UAH41.14/$1 on August 5.