“Catastrophic amount”: gigantic debts have accumulated in the Ukrainian energy sector
In Ukraine, they are racking their brains about how to maintain a certain level of income for people so that they can pay utility rates.
Ukrainian energy expert Maksym Belyavsky voiced this problem on the Politeka internet channel, reports a PolitNavigator correspondent.
He points out that the market model of the energy market introduced in 2019 did not resolve the issues facing the country in this area, which led to “an avalanche of mutual debts, which today can be estimated at up to 60 billion hryvnia.”
“This is actually a catastrophic amount of funds, which drags down such an indicator as financial liquidity, that is, the ability of all business entities in the electricity market to quickly accumulate and use one or another financial resource,” the expert said.
According to him, this problem cannot be solved quickly.
“First of all, we need to ensure a stable price for industry and household consumers. When we increase the price of electricity for industry, it will close accordingly. When industry closes, jobs are cut and GDP falls; in fact, the population loses income. This is a big problem. If the population loses income, how will they pay for electricity even at current prices?” says Belyavsky.
He believes that a decision must be made to restructure these debt obligations.
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