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 Wednesday, September 10, 2025, an important meeting took place between the Critical Infrastructure Association of the Slovak Republic and another central state administration body in the critical infrastructure sector, namely the Administration of State Material Reserves of the Slovak Republic (SŠHR).
V stredu 10. septembra 2025 sa uskutočnilo dôležité rokovanie Asociácie kritickej infraštruktúry Slovenskej republiky s ďalším ústredným orgánom štátnej správy na úseku kritickej infraštruktúry, ktorým je Správa štátnych hmotných rezerv Slovenskej republiky (SŠHR).
The Critical Infrastructure Association of the Slovak Republic (AKI SR) is negotiating with critical subjects and ministries about a suitable financing model for the resilience of critical subjects and the preservation of basic services. The Association is convinced that the entire burden of costs should not be borne only by critical subjects, but that the state should help finance the resilience of critical infrastructure, for example from European funds, and also support negotiations with banks on preparing advantageous loans towards developing threat analyses, security audits and subsequently projects to eliminate identified deficiencies. AKI SR will, in accordance with this proposal, initiate negotiations with the Slovak Banking Association and with the Deputy Prime Minister of the Slovak Republic for the recovery plan and knowledge economy. AKI SR is gradually concluding cooperation memorandums with ministries in accordance with the sectors that are under their responsibility according to the critical infrastructure law.
Asociácia kritickej infraštruktúry SR rokuje o financovaní nákladov na odolnosť kritických subjektov
Asociácia kritickej infraštruktúry Slovenskej republiky (AKI SR) rokuje s kritickými subjektami a ministerstvami o vhodnom modeli financovania odolnosti kritických subjektov a zachovania základných služieb. Asociácia je presvedčená, že celé bremeno nákladov by nemali niesť len kritické subjekty, ale aby štát pomohol financovať odolnosť kritickej infraštruktúry napríklad z európskych fondov a podporil aj rokovania s bankami o príprave výhodných úverov smerom k vypracovaniu analýz hrozieb, bezpečnostných auditov a následne projektov na odstránenie zistených nedostatkov. AKI SR bude v súlade s týmto návrhom iniciovať rokovania so Slovenskou bankovou asociáciou a s podpredsedom vlády SR pre plán obnovy a znalostnú ekonomiku. AKI SR postupne uzatvára memorandá o spolupráci s ministerstvami v súlade so sektormi, ktoré sú v zmysle zákona o kritickej infraštruktúre v ich zodpovednosti.
Representatives of the Critical Infrastructure Association of the Slovak Republic participated on August 21, 2025, in a working meeting on the issue of the Critical Infrastructure Strategy in the agriculture and rural development sector of the Slovak Republic.
Zástupcovia Asociácie kritickej infraštruktúry Slovenskej republiky sa 21. augusta 2025 zúčastnili na pracovnom stretnutí k problematike Stratégie kritickej infraštruktúry v rezorte pôdohospodárstva a rozvoja vidieka SR.
As part of developing cooperation across all critical infrastructure sectors, another significant meeting of the Critical Infrastructure Association of the Slovak Republic took place on August 14, 2025, this time at the Ministry of Investments, Regional Development and Informatization of the Slovak Republic.
V rámci rozvoja spolupráce naprieč všetkými sektormi kritickej infraštruktúry sa 14. augusta 2025 uskutočnilo ďalšie významné rokovanie Asociácie kritickej infraštruktúry Slovenskej republiky, tentokrát na Ministerstve investícií, regionálneho rozvoja a informatizácie Slovenskej republiky.
In the video, you will learn how the Critical Infrastructure Association of the Slovak Republic protects the state's strategic systems, supports innovation, and coordinates cooperation between the public and private sectors. From January 1, 2025, laws No. 367/2024 and 366/2024 bring new obligations in the area of critical infrastructure and cybersecurity. How to prepare for EU directives and face threats? See how the Critical Infrastructure Association of the Slovak Republic helps companies and institutions!
Vo videu sa dozviete, ako Asociácia kritickej infraštruktúry Slovenskej republiky chráni strategické systémy štátu, podporuje inovácie a koordinuje spoluprácu verejného a súkromného sektora. Od 1. januára 2025 prinášajú zákony č. 367/2024 a 366/2024 nové povinnosti v oblasti kritickej infraštruktúry a kyberbezpečnosti. Ako sa pripraviť na smernice EÚ a čeliť hrozbám? Pozrite si, ako Asociácia kritickej infraštruktúry Slovenskej republiky pomáha firmám a inštitúciám!