Ukraine To Restart Electricity Exports To Russia?

According to the Ukrainian Ministry of Fuel Energy, Ukraine is ready to export up to 1 TWh of electricity to Russia per month. Corresponding negotiations are currently being held between Ukraine and Russia. The key problem in these negotiations is the price of electricity: Ukraine insists on 24 USD/MWh, while Russia wants to pay no more than 19 USD/MWh. Concorde Capital: After the regulators forbid the Nuclear Generating Company Energoatom to export electricity to Russia at 14 USD/MWh, the export of electricity to Russia stopped in July. This caused problems of excess capacity supply on the Ukrainian market and the under-utilization of nuclear power plants. In the mid-term the problem of excess capacities must be solved by Ukraine and two ways of solving this problem are: export to Russia or export to the EU. The latter option implies the integration of the Ukrainian energy system to the European UCTE. This would be unbeneficial for Russia, which is against any type of integration of Ukraine into Europe. Thus, it is highly likely that Ukraine and Russia will reach a consensus on exports to Russia.