Ukraine promised to fully repay its debt to renewable energy producers, and to pay off on time from 2022 – a memorandum with the IMF

According to the updated text of the memorandum between Ukraine and the IMF on economic and financial policy with the IMF under the stand-by program, Ukraine has pledged to pay off debts to renewable electricity producers and provide 100 per cent settlements from 2022, Interfax-Ukraine reports.

“We will intensify our efforts to prevent the accumulation of quasi-fiscal deficits in the energy sector. To this end, we are committed to eliminating debts to renewable energy producers and preventing the accumulation of debt in the future,” reads the text of the updated memorandum.

According to the new quantitative criteria, Ukraine must ensure that there are no debts to renewable generation at the end of 2021 and the end of March 2022.

It will be able to provide a full settlement for renewable energy generation by establishing a sufficient tariff for electricity transmission for NPC Ukrenergo, from which the difference between the market price of electricity and the legally established “green” tariffs is financed.

The producers of "green" electricity received more than UAH 16 billion at the expense of funds from NPC Ukrenergo, which the company attracted through the issue of "green" Eurobonds.

As reported, Oschadbank managed to return only UAH 3 billion to Guaranteed Buyer after the dismissal of Petrykovets.

Read also: Feed-in Tariff, Memorandum and Debts: Is Ukraine Developing RES?

Tags: The Cabinet of Ministers, legislation, IMF, Ukrenergo, feed-in tariff, electricity market, foreign affairs, Guaranteed buyer, debt, renewables, investors, Ukraine, Europe

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