Integrity & Investment Roundtable Highlights Transparency in Ukraine’s Energy Sector
On the eve of the Ukraine 2024 Recovery Conference, the UN Global Compact Ukraine, as part of the Ukraine Energy Initiative and in partnership with the G7 Clean Energy Partnership, Goldbeck Solar and CMS, organized the “Integrity & Investment Roundtable: Spotlight on the Energy Sector”. The goal of the event was to promote transparency and integrity among grantees to ensure donor confidence and continued support.
Tetiana Sakharuk, Executive Director of UN Global Compact Ukraine, opened the discussion with a brief introduction of the Ukraine Business Compact, initiative, launched last year at URC2023:
“The Ukraine Business Compact is a call to action for international companies to consider Ukraine as a potential market. One of the principles of this initiative is anti-corruption and good governance. Today we have over 700 signatories. We continue to work with the Ukrainian government, hosting events and bilateral meetings with companies. As a continuation of this initiative, we launched the Ukraine Energy Initiative, a call to action for Ukrainian business, government, and the non-governmental sector to discuss obstacles and opportunities of the energy sector. Today’s event is dedicated to promoting transparency in Ukrainian business to attract investment. Because without transparency, it is impossible to restore the country.”
Before the main discussion, opening remarks were made by representatives of CMS and UNODS.
Dr. Gerd Leutner, Partner, CMS, addressed the audience, noting:
“Ukraine faces everyday attacks on the infrastructure, especially energy one. Reconstruction will require considerable effort and funding, and energy will be a crucial area in Ukraine’s rapprochement with the European Union. This process requires openness, anti-corruption and good governance on both sides. The resilience of Ukraine’s energy infrastructure, especially renewable energy sources, will be crucial in this context. Effective governance and a commitment to transparency will ensure successful reconstruction and integration into the EU.”
Echoing these statement, Harsheth Virk, Head of the United Nations Office on Drugs and Crime (UNODC), said:
“The ongoing war is causing many civilian casualties and damaging the country’s vital infrastructure and resources, jeopardizing the stability of its institutions and governance that can lead to increased risks of corruption and organized crime. UNODC is helping Ukraine to strengthen justice, integrity, accountability and the rule of law in order to attract international support and investment that will guarantee reconstruction and recovery efforts in line with UN norms and standards and the SDGs, and secure a better future for Ukraine.”
The first part of the discussion at the event began with a question about the future of the private sector in Ukraine.
Patrick Graichen, Staatssekretär a.D., German Ministry of Economics and Climate Action, emphasized:
“In Ukraine, there is an immediate need to improve air defenses to save lives and protect infrastructure. Building a resilient energy infrastructure is critical now and after the war. Renewable energy, such as wind and solar, is more resilient to attack and represents the future. We need an investment framework that allows cheap solar panels to produce cheap electricity, supported by clear and transparent regulations. Government efforts should focus on creating a simple, one-stop-shop type of regulation to attract investment. This will be crucial for Ukraine’s reconstruction and future EU integration.”
Roman Kachur, Alternate Executive Director (EDS-19) at the World Bank Group, highlighted the role of the World Bank, saying:
“The World Bank has become a major donor mobilization platform, channelling tens of billions of dollars from the private and public sectors to Ukraine. The focus has been on stabilization and macrofinancing to keep the Ukrainian state functioning. As the war continues, immediate recovery efforts in energy, logistics, and social infrastructure have become critical. The World Bank has about $300 million worth of projects in the pipeline to help restore energy infrastructure. Strengthened ESG frameworks, with a focus on climate change and resilient growth, will guide future investments and provide financing for companies and the government.”
Grzegorz Zielinski, Head of Energy Europe at the Sustainable Infrastructure Group, shared the EBRD’s efforts, stating:
“Since February 2022, the EBRD has invested more than €4.2 billion in Ukraine, a third of which has been in the energy sector. Our focus has been on maintaining system liquidity and financing the purchase and replacement of power transformers. It is impossible to restore lost generation overnight, especially with coal or gas. Renewables are now the cheapest than ever before. The role of distributed generation will be critical. Integrity must be paramount to ensure donor confidence and support. Flexible donor support, including investment grants or guarantees, is essential to enable private sector investment.”
Dmytro Boroday, Partner at Horizon Capital, emphasized the long-term opportunity, noting:
“Horizon Capital is a private equity fund that has been operating in Ukraine for 29 years and hasassets under management focused on Ukraine of $1.6 billion. We recently raised $350 million for one of our largest funds with the support of EBRD and IFC. We value integrity and transparency. We are selective in our partners and investments, ensuring common principles and effective implementation of ESG guidelines. The Ukrainian energy sector faces significant challenges, but also a unique opportunity for transformation. Many of our portfolio companies are investing in energy independence, such as solar and battery projects.”
Commenting on Goldbeck Solar’s focus, Lewis Haffey, Senior Investment Manager at Goldbeck Solar, said:
“Goldbeck Solar is a German company that started investing in the Ukrainian energy sector a year ago. We have a portfolio of projects in Kazakhstan and Poland and are applying this expertise in Ukraine. Our focus is on finding good projects, financing and bankable off-take solutions. We want to develop, finance, build and operate about 500 megawatts in the next 3 to 5 years. The main challenge is to secure long-term bankable off-take agreements. There is money available from IFIs and other sources, but we need more off-taker support to unlock investment. If this happens, we will see more investors in Ukraine, contributing to the growth and stability of the energy sector”.
Ukrainian companies shared their experiences of working to strengthen integrity to attract investors.
Oleksiy Povolotskiy, Head of the Office for Energy Infrastructure Recovery and Member of the Supervisory Board of DTEK, opened the discussion:
“We are fighting every day. We have been trying to reconnect the lines and rebuild the stations to ensure the supply of electricity to homes and businesses. From March to June this year, we experienced six massive attacks on our generating capacity, losing more than 90% of it. This has had a huge impact and we are doing our best to restore and rebuild everything before the next winter season. Ukrainians face severe power shortages, with shifts of seven hours without electricity and two hours with it. Imagine living in such conditions in big cities, with children and high-rise buildings, where you cannot plan your business or daily activities, and businesses cannot produce. We have received a lot of investment from companies to make our production more resilient. They are pushing us to find solutions to build distributed generation, and we are helping Ukrainians where we can.”
Adomas Audickas, Deputy CEO of PJSC MHP & CEO of MHP Verdant LLC, added:
“When we talk about financing, it’s not just about money. Projects have to be bankable, which requires a good regulatory framework. For example, biogas production makes sense because it is cheap and green. However, there is no market for it in Ukraine because the European market, which has the premium prices necessary for profitability, is inaccessible. If Europe allowed Ukrainian biogas to be exported, it would attract significant investment. We need a regulatory framework to make these projects viable. Electricity generation also faces challenges. Solar energy prices drop significantly when the sun is shining, making it financially unsustainable. Private investment in regulatory capacity is needed, but unpredictability in the market discourages investment. The focus should be on creating frameworks to make projects bankable, which will naturally attract funding.”
Julia Kiryanova, CEO of Smart-Holding LLC, emphasized:
“The war has brought unprecedented challenges affecting the economy and the private sector. Political instability and war risks are deterring investors. We need a strategic perspective on Ukraine’s economy that balances immediate needs with long-term goals. Transparency, clear rules and improvements in the investment climate are crucial. We should focus on ESG trends while recognizing the need for balanced energy sources. Ukraine could become an energy hub for Europe, but this requires a change in mindset and efficient use of our resources. Key needs include transparent regulations, property rights, integration with European standards, anti-corruption measures and financial incentives. Ukraine’s banking system should support the real sector and work with IFIs to facilitate project financing.”
Viktoriia Savitska, Chief of Sustainability & Strategic Engagement, Epicentr K, highlighted:
“Our 360-degree green impact model promotes sustainable lifestyles, supports government policies and drives industry change. As of 2023, our solar project already meets 30% of our energy needs, and we plan to install one million square meters of solar panels in the first phase. Charging stations for electric vehicles in the parking lots of Epicenter shopping centers provide an additional service to customers and support sustainable development. Our efforts in partnership with the Ukrainian government will help achieve national climate goals. As an industry leader, we work with 7,500 suppliers to encourage them to adopt sustainable practices, creating value for the entire industry. Our solar initiatives aim to reduce retail energy consumption by at least 1%. We are committed to working with donors for Ukraine’s short-term recovery and long-term economic development.”
From a legal perspective, Anzhelika Livitska, Partner, ARZINGER Law Firm, stated:
“I would like to be optimistic. The government has done a lot in cooperation with businesses and authorities. Simplification in the area of construction and land has made it easier to build in Ukraine. Deregulation in the area of permits means that obtaining new permits or licenses now takes only 10 working days, with most permits available online. Significant work by the Energy Efficiency Fund has financed up to 30% of household renovations. Negotiations with the EU aim to waive environmental impact assessment procedures for reconstruction projects. Financial services are ready to support projects in Ukraine, provided that certain requirements are met”.
The roundtable emphasized the importance of transparency, integrity and strong governance in attracting international investment and supporting the recovery of Ukraine’s energy sector in the face of ongoing challenges.
Share news:
