Ukraine to improve electric security of Avdiyivka

A new power line to the town of Avdiyivka will be extended from government-controlled territory by May 20, Interfax-Ukraine reported on March 20, citing a blog post by the Ministry of Temporarily Occupied Territories. Avdiyivka is located on Ukrainian-controlled territory near the seperation line with the occupied territories in the Donetsk region.

Also the site of Metinvest’s biggest coking plant, Avdiyivka currently receives electricity from the occupied territory of Donbas (namely the Zuyivska Power Plant, which used to be controlled by DTEK). Due to frequent damage to its power line, it often suffers from blackouts, which puts the coking plant’s production under continuous risk.

Another risk for Avdiyivka is that the Zuyivska Power Plant is unable to receive hard steam coal from the government-controlled part of Ukraine and is under risk to completely run out of coal.

Alexander Paraschiy: This announced project is positive for Metinvest (METINV), whose biggest coke producer (satisfying about 55% of the holding’s coke needs in 2016) will get the chance to work more stably with the new power line. It looks like the line will be built at the expense of the government (or government-controlled companies), and not at the expense of Metinvest or DTEK.