Integration of EU and Ukraine energy markets requires addressing debt issues, says Kharchenko
According to expert Kharchenko, outstanding debts within Ukraine’s energy market pose significant obstacles to its integration with the European market.
Kharchenko emphasized that the European side is linking the merging of markets to resolving the accumulated debt problem. He specifically referred to the balancing market, where, as per Kharchenko’s assessment, the debt levels impact system operations and compliance with European regulations.
He stated, “The Europeans say: ‘Resolve the debt issue, and then we will connect you.’ This has been a consistent position from the European side, which asserts that ‘we cannot integrate a market distorted by debts to the point that it is unworkable.'”
Furthermore, he indicated that a distinct mechanism for reducing debts is necessary for market integration. In his view, such a plan should outline specific goals for debt reduction and a sequence of actions to achieve them.
“Without addressing the debt problems, merging the markets is impossible. That’s 100% certain. However, it’s also right that there should be a cascading approach, focusing on resolving balancing market issues and lowering the debt levels,” Kharchenko reiterated.
