Our energy company DTEK and Dragon Capital have launched the Investment Hub for Ukraine's Energy Future to attract private investment into Ukraine's energy sector. The first meeting took place in London with government representatives, international financial institutions, investors, banks, companies and energy experts. Repairing and transforming the sector could cost more than $100 billion. The Hub will develop practical solutions to reduce risk for investors, support a workable regulatory framework and build a pipeline of investment-ready projects.
What is the Investment Hub for Ukraine's Energy Future?
The Investment Hub for Ukraine's Energy Future is an initiative developed by DTEK and Dragon Capital to connect the capital, institutions and companies that Ukraine needs for its next generation of critical energy projects. It works with public and private partners to develop targeted, practical solutions that help attract more investment into the energy sector.
Who took part in the first meeting in London?
The first meeting included senior representatives from government, international financial institutions, investors, banks, companies and energy experts working across Ukraine's energy sector. Jakub Zivansky and colleagues from McKinsey moderated the discussion. Maxim Timchenko, CEO of DTEK, thanked Oleksandr Kravchenko, Minister of Economy and Environment of Ukraine, Anatolii Kutsevol, Deputy Minister of Energy of Ukraine, and Dragon Capital CEO Tomas Fiala for their support.
Why does Ukraine's energy sector need private investment now?
Ukraine's energy sector needs private investment at scale because repairs and the transformation of the sector could cost more than $100 billion. The meeting took place during major russian strikes on energy infrastructure across Ukraine. Kyiv has faced some of the most intense attacks of the war in recent weeks, and earlier this week the energy sector was hit especially hard.
"These attacks show again why we cannot simply try to rebuild the energy system we had before. We need a decentralised system, with new generation closer to the people and the businesses they serve," said Mr Timchenko.
What do investors need before they commit capital?
Private investors will commit capital at scale when they see clear ways to reduce risk, a workable regulatory framework and a pipeline of investment-ready projects. The Hub's goal is to address these three barriers with solutions that public and private partners develop together.
What happens next?
DTEK will report on the Hub's progress over the coming months. After the launch, Mr Timchenko said: "Ukraine's energy sector has proven its resilience. Now it is time to fast-track the finance that will turn that resilience into a decentralised and secure energy system."
The Hub reflects the strategy of our shareholder Rinat Akhmetov to work with international partners to defend and restore Ukraine's vital infrastructure.
