DTEK disappointed as EBRD refuses funding amid oligarch concerns

In Ukraine, on November 26, 2024, DTEK, the country's largest private energy company, expressed its disappointment regarding a report by the Italian newspaper Corriere della Sera which claimed that the European Bank for Reconstruction and Development (EBRD) had refused to fund the company due to its ownership by oligarch Rinat Akhmetov. DTEK, which is crucial to the Ukrainian energy sector, contributing 12% of the country's electricity, responded emphatically to what it described as inaccurate reporting about both the company and its major shareholder. Akhmetov, Ukraine's wealthiest individual, has seen significant assets lost due to the ongoing conflict stemming from Russia’s invasion of Ukraine, prompting increased scrutiny and critiques of oligarch influence within the country’s economy. The EBRD, known for its substantial investment in Ukraine’s recovery and modernization efforts, stated that Odile Renaud-Basso, the bank's president, had not explicitly linked its decision directly to Akhmetov. Instead, the bank indicated its vigilance concerning the role of oligarchs in Ukraine’s reform processes, suggesting a cautious approach in its investment decisions. As the Ukrainian government advances reforms aimed at reducing oligarchic influence as a prerequisite for EU integration, DTEK insists it operates in compliance with both Ukrainian and European laws, categorically disputing the characterization of Akhmetov as an oligarch based on the newly adapted anti-oligarch law. DTEK emphasized its commitment to restoring the country's energy infrastructure after destructive attacks by Russia earlier that year, which resulted in a loss of 90% of the company's generation capacity. The company has invested heavily—amounting to $1.2 billion—of personal funds to aid in the recovery process, reinforcing its dedication to working alongside Western partners, including EU and U.S. stakeholders. Nevertheless, facing EBRD's refusal for funding, DTEK expressed hope that the bank would reconsider and contribute to restoring Ukraine's damaged energy sector, a critical step for the nation's recovery and stability. The interplay of politics, economics, and international relations underscores the complexities DTEK encounters as it navigates its position within Ukraine’s evolving energy landscape. The call for less oligarchic influence is vital not only for domestic reforms but also as a signal to international partners regarding Ukraine’s readiness to integrate into broader European economic structures. As the situation evolves, the importance of financial support from institutions like the EBRD becomes paramount, reinforcing Ukraine's aspirations on the path to membership in the European Union.