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
On July 3, 2025, a memorandum of cooperation was concluded in Bratislava between the National Security Authority (NBÚ) and the Critical Infrastructure Association of the Slovak Republic (AKI SR). The document was officially signed by JUDr. Roman Konečný, Director of the National Security Authority, and Ing. Tibor Straka, President of the Critical Infrastructure Association of the Slovak Republic. The cooperation will be implemented at the level of professional discussions, knowledge exchange, and presentation of the most suitable approaches in the field of information and cybersecurity. Both parties have also committed to supporting education in the field of information security and contributing to the prevention of cybercrime. This memorandum is the first of a series of memoranda that the AKI SR will conclude with other state administration bodies exercising competence in the field of critical infrastructure.
Dňa 3. júla 2025 bolo v Bratislave uzatvorené memorandum o spolupráci medzi Národným bezpečnostným úradom (NBÚ) a Asociáciou kritickej infraštruktúry Slovenskej republiky (AKI SR). Dokument oficiálne podpísali JUDr. Roman Konečný, riaditeľ Národného bezpečnostného úradu, a Ing. Tibor Straka, prezident Asociácie kritickej infraštruktúry Slovenskej republiky. Spolupráca bude realizovaná na úrovni odborných diskusií, výmeny poznatkov a prezentácie najvhodnejších prístupov v oblasti informačnej a kybernetickej bezpečnosti. Obe strany sa zároveň zaviazali podporovať osvetu v oblasti informačnej bezpečnosti a prispievať k prevencii kybernetickej kriminality. Toto memorandum je prvým z radu memoránd, ktoré bude Asociácia kritickej infraštruktúry Slovenskej republiky uzatvárať s ďalšími orgánmi štátnej správy vykonávajúcimi pôsobnosť na úseku kritickej infraštruktúry.
On June 26, 2025, another working meeting of the presidium of the Critical Infrastructure Association of the Slovak Republic (AKI SR) took place at the premises of the Council of Slovak Exporters, which was also attended by the chairman of the supervisory board of AKI SR.
Dňa 26. júna 2025 sa v priestoroch Rady slovenských exportérov uskutočnilo ďalšie pracovné rokovanie prezídia Asociácie kritickej infraštruktúry Slovenskej republiky (AKI SR), na ktorom sa zúčastnil aj predseda dozornej rady AKI SR.
In recent days, State Secretary of the Ministry of Interior of the Slovak Republic Patrik Krauspe received a delegation of the Critical Infrastructure Association of the Slovak Republic (AKI SR), which was led by AKI SR President Tibor Straka. The goal of the working meeting was to officially present the association as a professional and independent platform connecting state and private entities in the field of critical infrastructure and to discuss cooperation opportunities between the Ministry of Interior of the SR and AKI SR.
V uplynulých dňoch prijal štátny tajomník Ministerstva vnútra SR Patrik Krauspe delegáciu Asociácie kritickej infraštruktúry Slovenskej republiky (AKI SR), ktorú viedol prezident AKI SR Tibor Straka. Cieľom pracovného stretnutia bolo oficiálne predstavenie asociácie ako odbornej a nezávislej platformy prepájajúcej štátne aj súkromné subjekty v oblasti kritickej infraštruktúry a prerokovanie možností spolupráce medzi Ministerstvom vnútra SR a AKI SR.
The Slovak Chamber of Commerce and Industry (SOPK) organized its traditional semi-annual press conference on June 18, 2025. The discussion focused on how Slovakia is managing current economic challenges, while also presenting proposals for fundamental changes in the areas of innovation, artificial intelligence, and security.
Slovenská obchodná a priemyselná komora (SOPK) usporiadala 18. júna 2025 svoju tradičnú polročnú tlačovú konferenciu. Diskusia sa sústredila na to, ako Slovensko zvláda aktuálne hospodárske výzvy, a zároveň predstavila návrhy na zásadné zmeny v oblasti inovácií, umelej inteligencie a bezpečnosti.
New executive order from Trump cancels key cybersecurity initiatives from the Biden era, while the approach to cybersecurity on the other side of the Atlantic is markedly different – Europe is accelerating its digital security program.
Nové výkonné nariadenie od Trumpa ruší hlavné iniciatívy v oblasti kybernetickej bezpečnosti z éry Bidena, pričom postoj ku kybernetickej bezpečnosti je na druhej strane Atlantiku výrazne odlišný – Európa zrýchľuje svoj digitálny bezpečnostný program.