Ukraine To Increase Electricity Export To The West By 7% In 2006.

According to the CEO of Ukrinternergo, the company has signed new electricity export contracts with Poland, Hungary, Romania and Slovakia for 2006. On average the new prices for exports are 20% higher than in 2005, and the volume of exports will also go up 7%. Concorde Capital:  Increased electricity exports to the west will mean increased electricity output for Zakhidenergo (ZAEN: BUY). In addition to boosting western exports (about 4.5 TWh in 2006), Ukraine is also planning to start supplying electricity to Belarus (about 2.5 TWh). All this will positively affect Ukrainian power plants, and will decrease costs of electricity production. However, the unsolved gas problem could potentially put these contracts at risk.