Ukraine has to use own resources in energy sector and promote exports

This will allow us to obtain an integrated effect from the synergy of coal production and electricity generation, as well as enhance the energy independence of Ukraine.

Export activities enable balancing of the domestic electricity and coal market. In 2013, coal products supplies to businesses in the domestic market fell by 3.9 mln tonnes. Coal and electricity exports not only allowed us to compensate the demand reduction, but even to increase the total coal consumption in Ukraine by 0.6 mln tonnes. In 2013, the total supplies of ROM coal for exports amounted to 19.1 mln tonnes, which guaranteed jobs for more than 27 000 miners, including at state-owned mines.

DTEK actively expands trade area for domestic energy products. In 2014, the company plans to export 6.45 mln tonnes of coal, including 1.3 mln tonnes from external market. DTEK is focused on diversification of coal exports and pays special attention to cooperation with end users. In 2013, 48% of total anthracite exports were supplied to foreign end-users. DTEK expands cooperation with the iron and steel enterprises in Europe, Asia and Mediterranean countries that use Ukrainian anthracite in coke-substitution technologies. Our trading strategy provides for direct supplies on a CIF basis that is our competitive advantage. DTEK started to operate on the global freight market in 2013 and continued to successfully charter ships on favourable market terms in the first quarter of 2014.

“Ukraine has enough capacity to become one of the main suppliers of energy products to Europe,” Andrey Favorov said. “What we have to do is to build a legal framework and infrastructure for coal and electricity trading: introduce advanced coal processing technologies; create a coal exchange with a minimum liquidity of 10% of the market. We also have to switch to a new electricity market model envisaging direct contracts, day-ahead market, balancing market, daily online export auctions, and secondary transmission capacity access market.”  

DTEK is the largest energy company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The shareholder of the group is Rinat Akhmetov. Maxim Timchenko is the Chief Executive Officer of DTEK. Currently, DTEK employs 140 thousand people.

Electricity is the core product of DTEK. The assets portfolio is represented by 10 thermal power plants and two combined heat and power plants with 18 GW of total installed capacity; one wind farm with the designed installed capacity of 200 MW; five electricity distribution enterprises, which provide services to over 5.2 million customers — both individuals and legal entities; 31 mines and 13 coal-processing plants; oil and gas extraction assets.

In 2013, DTEK’s enterprises generated 53 TWh and supplied 56.9 TWh of electricity to consumers; coal output was 41.4 million tonnes and coal processing amounted to 29.3 million tonnes. DTEK exports electricity to four countries and coal to 31 countries worldwide. DTEK’s consolidated revenues in 2013 amounted to UAH 92.8 billion; the Company’s net profit totalled UAH 3.3 billion.