BMI View: Ukraine’s dependence on Russia for gas remains the most significant challenge for Ukraine’s energy policy, exposing the country to ongoing price disputes and strengthening Russia’s geopolitical leverage. Domestic sources cannot fuel all gas-fired generation, so Ukraine wishes to boost its nuclear and renewables capacity, while simultaneously attempting to divert its gas imports away from Russia. Investment is unlikely to reach the required level, due to low sales prices for power and the government’s weak fiscal position, although the IMF is pushing for tariff increases. Key trends and developments in the Ukrainian electricity market: ? Ukraine’s power generation in …
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