Restoration of Ukrainian Energy Sector Will Cost Tens of Billions of Euros
2. apríla 2025
Various aspects of the ongoing conflict in Ukraine are the subject of many discussions at virtually all levels of society. From a business perspective, however, we will try to focus on objective facts.
According to a report by the International Energy Agency (IEA), Ukraine lost more than 9 GW of electrical energy production capacity in the period from March to May of this year alone. Compared to the state before 2022, only about a third of Ukraine's energy infrastructure was in functional condition in the first half of 2024. "More than half of the high-voltage substations managed by the Ukrainian state enterprise UKRENERGO are damaged, and an acute shortage of spare parts makes their timely repair practically impossible. The IEA estimates the cost of restoring Ukraine's energy infrastructure at more than $30 billion," states Matúš Šársky, Director of International Relations at Eximbanka, in the final installment of the HN series "I Want to Be an Exporter."
According to him, stabilizing the Ukrainian transmission system and ensuring the availability of electricity is one of the key prerequisites not only for further recovery of the Ukrainian economy but also for creating basic conditions for the life of residents and economic activities of business entities in Ukraine even during the ongoing conflict.
Stability is the Priority
Security and energy stability are not only a priority for Ukraine but also for the European Union. These priorities are of strategic importance for EU countries in the immediate neighborhood of Ukraine. This includes Slovakia, which is already implementing specific steps in cooperation with Ukrainian partners in this regard. This mainly involves the modernization and capacity increase of the transmission system between Slovakia and Ukraine through the construction of a new connection in the Veľké Kapušany – Mukachevo section.
For this project to bring the expected results, it is necessary to carry out work on critical energy infrastructure on the Ukrainian side as well. "The implementation of complex projects of design, construction, and modernization of the energy system in the western part of Ukraine represents an opportunity that Eximbanka, in cooperation with partners, wants to mediate to Slovak companies as well," Šársky explains to HN.
According to him, the strategic advantage of Slovak companies is their knowledge of local Ukrainian partners, the environment, and related specifics. Slovak companies still employ a strong generation of top experts who gained experience, among other things, in the generation and transmission system in Ukraine. For their counterparts there, they are equal partners with excellent knowledge of the issues and needs of the Ukrainian energy market, and last but not least, with good language skills.
Proximity to Transcarpathia
Moreover, Slovakia has an exceptional position vis-à-vis Ukraine, especially its western part, namely Transcarpathia, defined by cultural and historical proximity, as well as the potential for developing mutual connections or Transcarpathia itself, into which financial and human capital is currently flowing from the entire country.
From a business perspective, the current situation in Ukraine needs to be perceived as highly risky due to commercial and political risks. Both these types of risks share a common denominator – the possibility of non-payment for delivered goods and services due to the insolvency or unwillingness of the customer on the Ukrainian side. "The probability of such a scenario can be very high, especially given the unpredictability of further development of the conflict and the related poor economic situation of Ukrainian entities that cannot perform their activities in a standard regime," says Šársky.
According to him, investments and business transactions into a country within which a conflict is taking place are unfeasible under commercial conditions in standard business practice. Commercial and even state and development financial institutions have only a very limited appetite for carrying out operations in the Ukrainian market in the current situation.
In the case of Ukraine, an unprecedented situation is occurring – the international community and states are making coordinated efforts to mobilize investments and financial operations in the interest of supporting and stabilizing the country. However, the resources of institutional and state budgets are insufficient to cover the massive investment needs. "One of the solutions is therefore the mobilization of additional investments from the resources of financial institutions and private capital through guarantee and grant schemes and instruments financed from the resources of institutional and state budgets," adds Šársky.
Source: “Obnova ukrajinskej energetiky bude stáť desiatky miliárd eur.” Eximbanka.sk, December 18, 2024. https://eximbanka.sk/obnova-ukrajinskej-energetiky-bude-stat-desiatky-miliard-eur/ . Accessed: 31. 3. 2025
According to him, stabilizing the Ukrainian transmission system and ensuring the availability of electricity is one of the key prerequisites not only for further recovery of the Ukrainian economy but also for creating basic conditions for the life of residents and economic activities of business entities in Ukraine even during the ongoing conflict.
Stability is the Priority
Security and energy stability are not only a priority for Ukraine but also for the European Union. These priorities are of strategic importance for EU countries in the immediate neighborhood of Ukraine. This includes Slovakia, which is already implementing specific steps in cooperation with Ukrainian partners in this regard. This mainly involves the modernization and capacity increase of the transmission system between Slovakia and Ukraine through the construction of a new connection in the Veľké Kapušany – Mukachevo section.
For this project to bring the expected results, it is necessary to carry out work on critical energy infrastructure on the Ukrainian side as well. "The implementation of complex projects of design, construction, and modernization of the energy system in the western part of Ukraine represents an opportunity that Eximbanka, in cooperation with partners, wants to mediate to Slovak companies as well," Šársky explains to HN.
According to him, the strategic advantage of Slovak companies is their knowledge of local Ukrainian partners, the environment, and related specifics. Slovak companies still employ a strong generation of top experts who gained experience, among other things, in the generation and transmission system in Ukraine. For their counterparts there, they are equal partners with excellent knowledge of the issues and needs of the Ukrainian energy market, and last but not least, with good language skills.
Proximity to Transcarpathia
Moreover, Slovakia has an exceptional position vis-à-vis Ukraine, especially its western part, namely Transcarpathia, defined by cultural and historical proximity, as well as the potential for developing mutual connections or Transcarpathia itself, into which financial and human capital is currently flowing from the entire country.
From a business perspective, the current situation in Ukraine needs to be perceived as highly risky due to commercial and political risks. Both these types of risks share a common denominator – the possibility of non-payment for delivered goods and services due to the insolvency or unwillingness of the customer on the Ukrainian side. "The probability of such a scenario can be very high, especially given the unpredictability of further development of the conflict and the related poor economic situation of Ukrainian entities that cannot perform their activities in a standard regime," says Šársky.
According to him, investments and business transactions into a country within which a conflict is taking place are unfeasible under commercial conditions in standard business practice. Commercial and even state and development financial institutions have only a very limited appetite for carrying out operations in the Ukrainian market in the current situation.
In the case of Ukraine, an unprecedented situation is occurring – the international community and states are making coordinated efforts to mobilize investments and financial operations in the interest of supporting and stabilizing the country. However, the resources of institutional and state budgets are insufficient to cover the massive investment needs. "One of the solutions is therefore the mobilization of additional investments from the resources of financial institutions and private capital through guarantee and grant schemes and instruments financed from the resources of institutional and state budgets," adds Šársky.
Source: “Obnova ukrajinskej energetiky bude stáť desiatky miliárd eur.” Eximbanka.sk, December 18, 2024. https://eximbanka.sk/obnova-ukrajinskej-energetiky-bude-stat-desiatky-miliard-eur/ . Accessed: 31. 3. 2025
A large-scale power outage is no longer a hypothetical scenario. Recent months have brought a series of incidents showing that the stability of Europe's electricity systems is exposed to a combination of threats on a scale we have not previously encountered. The discussion of blackouts is therefore shifting from technical circles into the broader strategic framework of critical infrastructure protection.
Rozsiahly výpadok elektriny prestáva byť hypotetickým scenárom. Posledné mesiace priniesli sériu incidentov, ktoré ukazujú, že stabilita elektrizačných sústav v Európe je vystavená kombinácii hrozieb, akú sme v takomto rozsahu doteraz nepoznali. Diskusia o blackoute sa tak presúva z technických kruhov do širšieho strategického rámca ochrany kritickej infraštruktúry.
Artificial intelligence is changing the rules of the game in critical infrastructure protection. It is no longer merely an aid in defence — it is also becoming a weapon in the hands of attackers. The question is no longer whether AI will enter the critical infrastructure environment, but how quickly we can prepare for this change.
Umelá inteligencia mení pravidlá hry v ochrane kritickej infraštruktúry. Už nie je len pomocníkom pri obrane, stáva sa aj zbraňou v rukách útočníkov. Otázka už neznie, či sa AI dostane do prostredia kritickej infraštruktúry, ale ako rýchlo sa na túto zmenu dokážeme pripraviť.
Oblasť kritickej infraštruktúry v Slovenskej republike upravuje zákon č. 367/2024 Z. z. o kritickej infraštruktúre a o zmene a doplnení noektorých zákonov, ktorý definuje jednotlivé sektory, podsektory a základné služby nevyhnutné pre fungovanie štátu.
The area of critical infrastructure in the Slovak Republic is regulated by Act No. 367/2024 Coll. on Critical Infrastructure and on Amendments and Supplements to Certain Acts, which defines individual sectors, subsectors, and essential services necessary for the functioning of the state.
The Critical Infrastructure Association of the Slovak Republic has entered into negotiations on international cooperation with the Republic of India in the field of critical infrastructure protection and the development of post-quantum cryptography. This step reflects the growing importance of technological security and the need to prepare for the advent of quantum technologies, which will fundamentally impact current cryptographic standards. In this context, a significant meeting took place at the Embassy of the Republic of India in Slovakia, attended by H.E. Apoorva Srivastava, Ambassador of the Republic of India to the Slovak Republic, Rastislav Chovanec, State Secretary of the Ministry of Foreign and European Affairs of the Slovak Republic, and Tibor Straka, President of The Critical Infrastructure Association of the Slovak Republic. The delegation also included the Chairman of its Supervisory Board and a representative of member company Decent Cybersecurity s. r. o., Matej Michalko. The discussion focused primarily on opportunities for the development of bilateral cooperation in the areas of critical infrastructure, cybersecurity, and the implementation of post-quantum cryptographic solutions. India is among the countries that systematically invest in the development of cryptography and quantum technologies. This is evidenced by its strategic initiative, the National Quantum Mission, which aims to build a comprehensive national quantum technology ecosystem. It is precisely in this area that The Critical Infrastructure Association of the Slovak Republic sees significant potential for cooperation and the involvement of Slovak technology entities. One such entity is Decent Cybersecurity s. r. o., a company with a long-standing focus on research and implementation of solutions for critical infrastructure, defence systems, and telecommunications networks. The company specialises primarily in the practical implementation of new cryptographic algorithms into modern hardware and software architectures, which makes it well-suited for participation in international post-quantum security projects. From the perspective of the Slovak Republic, cooperation with India represents a significant opportunity for the development of technological diplomacy and the strengthening of strategic partnerships. As one of the fastest-growing digital economies in the world, India plans extensive investments in quantum research and technological infrastructure. The involvement of Slovak companies in these initiatives could substantially support the export of innovative solutions and strengthen technological ties between the two countries. The aim of this initiative is to establish a stable technological partnership between Slovak and Indian institutions, overseen by The Critical Infrastructure Association of the Slovak Republic. An important role is also played by the diplomatic support of the Ministry of Foreign and European Affairs of the Slovak Republic, which can significantly facilitate the establishment of contacts with relevant partners in India. This initiative also fits within the broader context of strengthening technological relations between the European Union and India. Slovakia's active involvement in this process could contribute to reinforcing its position within the European technology ecosystem and increasing its international competitiveness. At the meeting, both sides expressed a clear interest in developing mutual cooperation and identified significant potential for future joint projects. The partners agreed that the combination of expert capacities, technological innovation, and diplomatic support creates a solid foundation for a long-term strategic partnership that can deliver tangible results in the areas of security, innovative development, and economic cooperation. Both sides will continue their expert-level communication, aimed at building a stable platform for a long-term and functional partnership between India and Slovakia in the fields of critical infrastructure and post-quantum cryptography.
Asociácia kritickej infraštruktúry Slovenskej republiky vstúpila do rokovaní o medzinárodnej spolupráci s Indickou republikou v oblasti ochrany kritickej infraštruktúry a rozvoja postkvantovej kryptografie. Tento krok reflektuje rastúci význam technologickej bezpečnosti a potrebu pripraviť sa na nástup kvantových technológií, ktoré zásadne ovplyvnia súčasné kryptografické štandardy. V tejto súvislosti sa na pôde Veľvyslanectva Indickej republiky na Slovensku uskutočnilo významné stretnutie za účasti J.E. Apoorva Srivastava, veľvyslankyne Indickej republiky v Slovenskej republike, štátneho tajomníka Ministerstva zahraničných vecí a európskych záležitostí Slovenskej republiky Rastislava Chovanca a prezidenta Asociácie kritickej infraštruktúry Slovenskej republiky Tibora Straku . Súčasťou delegácie AKI SR bol aj predseda jej dozornej rady a zástupca členskej spoločnosti Decent Cybersecurity s. r. o. Matej Michalko. Diskusia sa zamerala najmä na možnosti rozvoja bilaterálnej spolupráce v oblasti kritickej infraštruktúry, kybernetickej bezpečnosti a implementácie postkvantových kryptografických riešení. India patrí medzi krajiny, ktoré systematicky investujú do rozvoja kryptografie a kvantových technológií. Dôkazom je aj jej strategická iniciatíva National Quantum Mission, ktorej cieľom je vybudovať komplexný národný ekosystém kvantových technológií. Práve v tejto oblasti vidí AKI SR významný priestor pre spoluprácu a zapojenie slovenských technologických subjektov. Jedným z nich je spoločnosť Decent Cybersecurity s. r. o. , ktorá sa dlhodobo venuje výskumu a implementácii riešení pre kritickú infraštruktúru, obranné systémy a telekomunikačné siete. Spoločnosť sa špecializuje najmä na praktickú implementáciu nových kryptografických algoritmov do moderných hardvérových a softvérových architektúr, čo ju predurčuje na zapojenie do medzinárodných projektov v oblasti postkvantovej bezpečnosti. Z pohľadu Slovenskej republiky predstavuje spolupráca s Indiou významnú príležitosť pre rozvoj technologickej diplomacie a posilnenie strategických partnerstiev. India ako jedna z najrýchlejšie rastúcich digitálnych ekonomík sveta plánuje rozsiahle investície do kvantového výskumu a technologickej infraštruktúry. Zapojenie slovenských spoločností do týchto iniciatív by mohlo výrazne podporiť export inovatívnych riešení a posilniť technologické väzby medzi oboma krajinami. Cieľom iniciatívy je vytvorenie stabilného technologického partnerstva medzi slovenskými a indickými inštitúciami, ktoré bude zastrešovať Asociácia kritickej infraštruktúry Slovenskej republiky. Dôležitú úlohu pritom zohráva aj diplomatická podpora Ministerstva zahraničných vecí a európskych záležitostí SR, ktorá môže výrazne napomôcť pri nadväzovaní kontaktov s relevantnými partnermi v Indii. Táto iniciatíva zároveň zapadá do širšieho kontextu posilňovania technologických vzťahov medzi Európskou úniou a Indiou. Aktívne zapojenie Slovenska do tohto procesu by mohlo prispieť k posilneniu jeho pozície v rámci európskeho technologického ekosystému a zvýšiť jeho medzinárodnú konkurencieschopnosť. Na stretnutí obe strany vyjadrili jasný záujem o rozvoj vzájomnej spolupráce a identifikovali významný potenciál pre budúce spoločné projekty. Partneri sa zhodli, že prepojenie odborných kapacít, technologických inovácií a diplomatickej podpory vytvára pevný základ pre dlhodobé strategické partnerstvo, ktoré môže priniesť konkrétne výsledky v oblasti bezpečnosti, inovatívneho rozvoja a ekonomickej spolupráce. Obe strany budú pokračovať v odbornej komunikácii, smerujúcej k vybudovaniu stabilnej platformy pre dlhodobé a funkčné partnerstvo Indie a Slovenska v oblasti kritickej infraštruktúry a postkvantovej kryptografie.
For most people, GPS (Global Positioning System) is synonymous with car or smartphone navigation. It helps us find our way, avoid traffic jams, and discover new places. However, very few realise that the Global Positioning System provides precise time and location data upon which the functioning of modern society depends.
Pre väčšinu ľudí je GPS (Global Positioning System) synonymom navigácie v aute alebo v mobile. Pomáha nám nájsť cestu, vyhnúť sa zápcham či objaviť nové miesta. Len málokto si však uvedomuje, že globálny satelitný systém určovania polohy (GPS) poskytuje údaje o presnom čase a presnej polohe, na ktorých stojí fungovanie modernej spoločnosti.