Ukraine in Talks with EU to Maximize Electricity Imports, Minister Says 

German's Foreign Minister Annalena Baerbock speaks to Ukrainian minister of energy German Galushchenko during official visit to a thermal power plant which was destroyed by a Russian rocket attack in Ukraine, Monday, May 21, 2024. (AP)
German's Foreign Minister Annalena Baerbock speaks to Ukrainian minister of energy German Galushchenko during official visit to a thermal power plant which was destroyed by a Russian rocket attack in Ukraine, Monday, May 21, 2024. (AP)
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Ukraine in Talks with EU to Maximize Electricity Imports, Minister Says 

German's Foreign Minister Annalena Baerbock speaks to Ukrainian minister of energy German Galushchenko during official visit to a thermal power plant which was destroyed by a Russian rocket attack in Ukraine, Monday, May 21, 2024. (AP)
German's Foreign Minister Annalena Baerbock speaks to Ukrainian minister of energy German Galushchenko during official visit to a thermal power plant which was destroyed by a Russian rocket attack in Ukraine, Monday, May 21, 2024. (AP)

Ukraine is negotiating to maximize possible imports of electricity from European Union countries to compensate for the generation capacity destroyed by the Russian attacks, Ukrainian energy minister said on Friday.

Russian missile and drone attacks on Ukraine's energy sector have intensified since March, resulting in significant damage and blackouts in many regions.

The attacks have caused more than $1 billion of damage to the sector, leading to the loss of 8,000 MWh of generating capacity from the energy system, the government says.

Currently, Ukraine can import from the EU states no more than 1,700 Mwh of electricity simultaneously.

"We're negotiating. Our task is to maximize this figure," Energy Minister German Galushchenko told parliament.

"Technically, we can receive (import) more than 2,000 Mwh, even 2,400 Mwh. I'm sure a decision will be made," he added.

Volodymyr Kudrytskiy, the head of Ukraine's national power grid operator Ukrenergo, told Ukraine's Telegraf that 1,700 Mwh is "the ceiling for now".

"Everything will depend on how quickly our European colleagues - energy system operators of neighboring countries - will be able to implement projects to expand the capacity of their grids," Kudrytskiy said.

He said that European grid companies need time and money to reinforce some of their substations, install additional transformers or build new transmission lines.

"We think 3,500 to 4,000 Mwh of interstate interconnector capacity is something we can have in the horizon of five years," Kudrytskiy noted.

Energy minister Galushchenko did not say exactly how much imports are being discussed now, but Maxim Timchenko, the head of Ukraine's largest private energy company, DTEK, said earlier this month that an increase to 2,200 Mwh could significantly improve the situation.

DTEK has lost about 90% of its power generation capacity due to Russian missile attacks in recent months.

DTEK data showed that Ukraine consumed around 13,000 Mwh before the attacks as of March 17 but after a series of Russian attacks on the energy system, consumption fell to 9,100 Mwh.

Due to power shortages, Ukrainian power grid operator Ukrenergo has been forced to introduce regular shutdowns of industrial consumers and households and maintain high import rates.

Problems with power generation can have a "potentially negative impact" on industry, especially the largest electricity consumers, the economy ministry said this week.



Oil Slumps More than 4% after Iran Downplays Israeli Strikes

Oil pump jacks work at sunset near Midland, Texas, US, August 21, 2019. REUTERS/Jessica Lutz/File Photo
Oil pump jacks work at sunset near Midland, Texas, US, August 21, 2019. REUTERS/Jessica Lutz/File Photo
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Oil Slumps More than 4% after Iran Downplays Israeli Strikes

Oil pump jacks work at sunset near Midland, Texas, US, August 21, 2019. REUTERS/Jessica Lutz/File Photo
Oil pump jacks work at sunset near Midland, Texas, US, August 21, 2019. REUTERS/Jessica Lutz/File Photo

Oil prices tumbled more than $3 a barrel on Monday after Israel's retaliatory strike on Iran over the weekend bypassed Tehran's oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East.
Both Brent and US West Texas Intermediate crude futures hit their lowest levels since Oct. 1 at the open. By 0750 GMT, Brent was at $72.92 a barrel, down $3.13, or 4.1%, while WTI slipped $3.15, or 4.4%, to $68.63 a barrel, Reuters said.
The benchmarks gained 4% last week in volatile trade as markets priced in uncertainty around the extent of Israel's response to the Iranian missile attack on Oct. 1 and the US election next month.
Scores of Israeli jets completed three waves of strikes before dawn on Saturday against missile factories and other sites near Tehran and in western Iran, in the latest exchange in the escalating conflict between the Middle Eastern rivals.
The geopolitical risk premium that had built in oil prices in anticipation of Israel's retaliatory attack came off, analysts said.
"The more limited nature of the strikes, including avoiding oil infrastructure, have raised hopes for a de-escalatory pathway, which has seen the risk premium come off a few dollars a barrel," Saul Kavonic, a Sydney-based energy analyst at MST Marquee, said.
"The market will be watching closely for confirmation Iran won't counter attack in the coming weeks, which could see the risk premium rise again."
Commonwealth Bank of Australia analyst Vivek Dhar expects market attention to turn to ceasefire talks between Israel and Iran-backed militant group Hamas that resumed over the weekend.
"Despite Israel’s choice of a low aggression response to Iran, we have doubts that Israel and Iran’s proxies (i.e. Hamas and Hezbollah) are on track for an enduring ceasefire," he said in a note.
Citi lowered its Brent price target in the next three months to $70 a barrel from $74, factoring in a lower risk premium in the near term, its analysts led by Max Layton said in a note.
Analyst Tim Evans at US-based Evans Energy said in a note: "We think this leaves the market at least somewhat undervalued, with some risk OPEC+ producers may push back the planned increase in output targets beyond December."
In October, the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, kept their oil output policy unchanged including a plan to start raising output from December. The group will meet on Dec. 1 ahead of a full meeting of OPEC+.