Ukraine Decreased Electricity Exports In 1Q06.

Compared to 1Q05, Ukraine exported 16% less electricity. The decrease was caused mainly by stopping exports to Russia. Instead, Ukraine is increasing its exports to UCTE countries, Moldova, and has started exporting to Belarus.

Export, GWh

                      1Q06       1Q05        Change

Hungary          911         834             9%

Poland            236         241            -2%

Slovak Rep       93         74              25%

Romania           20        13              50%

UCTE          1260       1162              8%

Russia         0           1338                –

Belarus        501          0                  –

Moldova      464        156             198%

CIS             965      1493           -35%

Total         2225       2655            -16%

Concorde Capital: Ukraine plans to increase exports to CIS countries by 10% yoy, and to UCTE countries by 28% yoy in 2006. While export plans to CIS countries (Belarus and Moldova) look realistic, increasing exports to UCTE does not look realistic, as Ukraine does not have available capacities to support such growth.