Ukraine enters European energy market with new deal

Kyiv has successfully tapped into the European energy market in a move that will allow it to export and import electricity as Europe looks to break energy dependence on Russia because of the deadly war in Ukraine.

Ukraine s Minister of Energy Herman Galushchenko said Tuesday that the European energy system ENTSO-E will begin commercial electricity exports Thursday under Ukraine's electricity transmission system Ukrenergo.

The exports will begin in smaller quantities with the initial export volume hovering around 100 megawatts MW Galushchenko said export electricity volumes will gradually increase after monthly impact assessments by the ENTSO-E on the European energy system.

Our power system can provide up to 1,690 MW of capacity for export. The capacity to sell electricity abroad can increase to 4 -- 5 GW gigawatts, according to the minister.

Ukraine will only transmit electricity to Romania, but transmissions are expected to begin exporting to Slovakia and Hungary later this year, along with Moldova Romania transmissions.

The decision finally breaks the 'aquarium' of the Ukrainian energy market, and brings us closer to full integration into the European energy space, according to the chairman of the Ukrenergo, Volodymyr Kudrytsky. The new transmission deal will connect Ukraine to the synchronous zone of continental Europe, the world's largest power grid system, which comprises 35 countries, and will allow Kyiv to import energy from these nations as well.

Galushchenko said the deal will not only provide financial income that Ukraine desperately needs as the war continues with Russia, but it will allow European nations to stabilize their energy markets.

He said that European countries will be able to provide a more stable energy supply and replace Russia's energy resources.

According to Ukrainian news outlets, Kyiv expects to receive nearly $1.6 billion in electricity export revenues from the European Union by the end of the year. As it continues to expand electricity transmissions to various European nations, the income rate is expected to increase.

The Ukrainian Energy Ministry estimates that the new deal could replace up to 17% of Russia's gas exports to the EU, which has pledged to cut 90% of Russian gas imports by the end of the year.