DTEK CEO Maxim Timchenko gave an exclusive interview on CNN and spoke about the upcoming heating season and the electricity exports to European countries.
CHATTERLEY: Ukraine, of course, with President Zelenskyy warning this winter will be worst the country has faced in decades. He announced that the country will hold all coal and gas exports as it battles to shore up domestic supplies. President Zelenskyy met with the largest state-owned energy companies this week to discuss plans for what happens when the cold weather returns. And one of the companies that will be instrumental in that effort is DTEK Ukraine's largest private energy firm. It provides 20 percent of Ukraine's electricity needs it's also the country's biggest employer with more than 60,000 workers. And DTEK CEO Maxim Timchenko joins us now from Kyiv. Maxim great to have you on the show we appreciate your time! Just tell me how bad it might get this winter for Ukrainians? Do they have to expect power cuts rationing as a matter of course?
MAXIM TIMCHENKO: Good morning, Julia, thank you. Thank you for your interest in speaking with us. More than 100 days Ukrainians fighting for Ukraine, fighting for democracy our freedom, and fighting for energy security of European countries.
So, we already demonstrated that in such a difficult situation we maintain stability of our energy system. And also, we connect it to European energy system. Moreover, we offer - export of electricity from Ukraine to support our neighbors. So, for the next week, the season it won't be easy, but we demonstrated so high level of unity Ukrainian people Ukrainian business everybody involved in energy security of our country.
So today, our company is a major coal producer in the country. And we managed to produce as much coal as it was before the war and the same, the same story with the gas production. So today, we had all these activities together with state owned companies with our Ministry of Energy.
And I'm sure that for the rest, six to eight months, we will do everything possible so that we avoid any blackouts in your industry.
CHATTERLEY: I mean that's an incredible feat, given what the country is going through. For consumers at the same time, the President said, look, gas and electricity prices won't change. I know you as a company as well have been providing free electricity to critical infrastructure like lawenforcement, hospitals, and military facilities. How much of the energy that you're providing is actually being paid for? Can you afford this?
MAXIM TIMCHENKO: We had great difficult situation in the beginning of the war when collection rate was about 30 percent today, today's program, and we collect about 80-85 %, for electricity and gas supply. Yes, it was decision taken corporate level that until the war is over, we provide electricity for free for some consumers, as you just mentioned, and we will keep doing that.
It's not easy but I think this is our contribution to our victory. And that bill will keep providing this electricity for free. But in general, as I said, situation is improving in terms of payments. And then we try to do everything possible to improve financial situation for the coal sector.
That's why export of electricity out of Ukraine to European countries extremely important to support financial stability of our energy system.And basically, as I already said, unity is the key for us to be strong. So we work very closely with our government, with our partners and ourcolleagues in the energy sector and I feel quite confident.CHATTERLEY: I want to talk to you about the future and the provision, perhaps of electricity to other European nations, because that goes back to the financing and the future and rebuilding in Ukraine too. But just to your point about the coal production that you're managing to create, and what you're providing, at this moment, just how much of your operations have been impaired over the past few months and just talk to me about sort of repairing those in recovery and rebuilding.MAXIM TIMCHENKO: So, I would use the world build a new Ukraine rather than rebuilding. So, and basically, this is what we discussed with our international partners right now. So, our position is that Ukraine should play much more important role in energy security of European and Europeancountries.And today, we have enormous opportunities to develop renewable energy. Basically, our company, being the major coal producer, two years agoannounced that by 2040, we will be climate neutral. And we already became the largest renewable producer in the country. And this is a good example for other companies that we should go from fossil fuel to renewable and Ukraine can be one of the major suppliers of green energy to European countries.
So, this initiative we want to bring to channel discussion basically in the beginning of July to the conference in Ghana, about recovery of Ukrainian economy where all this will be discussed. But I'm very much confident that Ukraine will play the most important roles in future energy security landscape of European Union, where I believe everybody learned a lot.
CHATTERLEY: There's so much in that. There's the diversification away from Russian energy angle, there's the transition perhaps to cleaner energy, there's the ability for Ukraine one day perhaps to provide electricity and energy to other EU nations.As we've mentioned, you know, I've spoken to private investors who are looking at Ukraine in saying one that they want to help but also that there's a business opportunity perhaps two whether it's not rebuilding, building future infrastructure electricity grids whatever it is.
Would you welcome foreign competition support but also competition to ensure that you have the most efficient infrastructure energy infrastructure in the country in the future?
MAXIM TIMCHENKO: Of course, when we talk about such numbers of 30 gigawatts means huge investments up to 40 billion euros not only in production capacities in power generation, but also in the green infrastructure transport capacities, better storage, all this newest technology can be brought to Ukraine.And we basically build in coalition of private business and major companies in energy sector and with this discussion; we are looking for private capital supported by a government institution through political risk insurance. This is what basically we need but there is a very high level of interest from private businesses to invest and to build up.
CHATTERLEY: Yes, much to deal with in the short term and the longer-term sir. We wish you well you and your family thank you for your time and thank you for what you're doing for the people. Maxim Timchenko, thank you sir, the CEO of Ukrainian energy firm DTEK. We're back after this stay with us.
