Ukraine’s political turmoil has sent the country spiraling into a financial crisis and threatens to impact negatively on global markets. How Russia responds will have an effect on oil and stocks, which in turn could affect businesses worldwide.
The “stocks to buy if russia invades ukraine” is a recent topic that has been discussed by many. The stock market and the oil industry have shown their reaction to the news of Russia invading Ukraine.
During a video interview, Maxim Timchenko, CEO of DTEK, a Ukrainian electricity firm. Credit…Reuters
Keeping millions of consumers in Ukraine connected to the electrical grid during the Russian invasion is difficult to say the least. Especially when the electrical grid becomes a target in and of itself.
“What we’re seeing today is that they’re attacking transmission lines, substations, and power plants,” said Maxim Timchenko, CEO of DTEK, a significant private Ukrainian energy firm. He said that in the early days of the battle, the Russian troops seemed to be apprehensive about destroying vital civilian facilities.
“They are no longer selective,” he remarked.
Mr. Timchenko detailed how DTEK, which provides roughly 20% of Ukraine’s energy, and other Ukrainian utilities were struggling to keep the lights on during the Russian attack in a video chat from an unidentified location in western Ukraine.
Despite the urgency, Ukraine, which is not a member of the European Union, has managed to accomplish what it had been working on for years: a linkup with the electrical grids of nearby E.U. member nations such as Romania, Slovakia, Poland, and Hungary, according to Mr. Timchenko.
In a statement, Europe’s energy commissioner, Kadri Simson, stated, “This will assist Ukraine maintain their power grid reliable, households warm, and lights on during these dark times.” “Ukraine is now part of Europe in this area,” she continued.
Mr. Timchenko said that in the event of a significant power outage, Ukraine may now seek for emergency electrical supplies from the European grid. Just before the invasion, Ukraine terminated its energy ties with Russia and Belarus in order to gain independence from power sources in unfriendly nations.
When DTEK’s transmission cables are damaged or cut, Ukrainian troops in flak jackets accompany its emergency repair personnel to the impacted locations. Six of DTEK’s nearly 60,000 workers were murdered during the conflict, according to Mr. Timchenko, but not while doing corporate activities.
Ukraine’s electrical operations were “pretty steady,” according to Mr. Timchenko. Keeping things that way, though, seems to be a risky proposition. The majority of Ukraine’s energy comes from four nuclear power stations, one of which, Zaporizhzhia, is Europe’s biggest nuclear power facility, is presently controlled by Russian soldiers after being attacked.
Electric power use has dropped by around a third since the invasion on Feb. 24, he added. This is due to a drop in economic activity and long-term damage in areas like Mariupol, a city on the Black Sea coast that has been heavily bombarded by Russia, and Kharkiv, Ukraine’s second biggest city, which has also been severely damaged. According to Mr. Timchenko, 1.3 million consumers in Ukraine are effectively disconnected.
One of DTEK’s eight traditional fossil-fuel-burning power units in Luhansk has been disconnected as a result of the invasion, and he is worried about another unit that is close to Russian lines and might be cut off if an advance occurs. When supplies of coal, which DTEK mines, were cut off, the business shifted part of its producing units to natural gas.
Mr. Timchenko said that only roughly a third of the company’s 3.8 million clients were paying their bills at this time, despite the fact that the banking system was still operational. He said that the corporation, which is ultimately controlled by Rinat Akhmetov, Ukraine’s wealthiest man, still has financial reserves. However, he said that the state-owned electrical companies were in desperate need of foreign assistance.
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The “lukoil stock” is a company that has seen its share price increase after the news broke. The stock value of lukoil increased by 4% on Monday, but it is still not at the level that it was before the crisis.
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