State pays green energy producers UAH 16.3 bln, DTEK seems discriminated

State company Guaranteed Buyer (GarPok) reported on Nov.
15 that it had paid to renewable energy producers UAH 16.3 bln the same day. In
this way, the company continues to pay for “green” electricity that it had
purchased in 2020 and 2021, it reported. Recall, another state company,
Ukrenergo (NPCUKR), reported that last week it directed UAH 19.3 bln to GarPok
so that it would be able to partially repay its debt to renewable energy
producers for 2020-2021. Therefore, GarPok is yet to pay UAH 3.0 bln from the
funds received from Ukrenergo. According to reform.energy news site, DTEK
Renewables (DTEREN, the biggest producer of renewable energy in Ukraine)
received no payments from GarPok as of the evening of Nov. 15.

Recall, Ukrenergo placed USD 825 mln Eurobondin early November to finance the repayment of GarPok’s debt to green energy
producers. On Nov. 13, Cabinet fired GarPok director Kostiantyn Petrykovets who
related his dismissal to the wish of the government to avoid debt repayment to
DTEK Renewables.

Alexander Paraschiy: If DTEK
Renewables is indeed discriminated against by GarPok, this is not only a rude
violation of market rules and regulations, but also a dangerous precedent on
the energy market. By violating the rules, GarPok makes it clear that certain
green energy producers can be discriminated against, if policy makers ask about
it.

Also, by doing this, Zelensky confirms that there is a
personal conflict between him and Rinat Akhmetov, the owner of DTEK. As the
experience of Akhmetov’s relations with all the previous presidents suggests,
the tycoon is certain to find a compromise with power brokers, sooner or later.
Also, DTEK lawyers and lobbyists are very likely to sue those who decided to
discriminate against the holding, which has a high probability of prompt
success and some chance for a degree of compensation. However, in the
short-term, the liquidity risk for DTEK Renewables increases.