2024 Meridian Summit: Resilient Power: Ukraine’s Energy Sector as a Catalyst for European Security and Investment
Facing the immense challenges posed by the Russian invasion, Ukrainian business leaders are urging international collaboration, especially in the heavily targeted energy sector. Natalya Yemchenko, Chief Corporate Affairs Officer of Ukraine's largest investment firm, SCM Group, made her first public appearance in the United States in which she highlighted the critical intersection of energy resilience, private investment, and European security in the face of Russia’s continued aggression against Ukraine. In a discussion with The Honorable James Glassman, chair of Glassman Enterprises and former Under Secretary of State for Public Diplomacy and Public Affairs, Yemchenko shared critical insights into Ukraine’s energy crisis and the strategic importance of energy security. Through its subsidiary DTEK, the largest private energy company in the country, SCM Group continues to operate and invest heavily in the country’s energy infrastructure, even in the face of relentless attacks. The stakes are high, with systematic Russian attacks targeting Ukraine’s energy grid, threatening both civilian populations and economic activity as winter approaches.
Since the start of the war, SCM Group has also contributed over $300 million to the war effort.
Key Takeaways
Yemchenko underscored four key areas in Ukraine’s preparation for the upcoming winter: personal energy resilience, decentralized energy generation, international investment in Ukrainian energy infrastructure, and institutional support for rebuilding after missile strikes. Last winter demonstrated that Ukraine’s energy sector, despite facing over a thousand missile strikes between March and August, managed to prevent a humanitarian crisis. Decentralized energy sources like gas turbines and renewables have been crucial in enhancing resilience. DTEK’s wind power projects, including one built only 60 kilometers from the front lines, exemplify the innovative spirit driving Ukraine’s energy future. Decentralized systems, Yemchenko stressed, offer enhanced security against missile attacks, “much more secure than traditional power generation.” Another remarkable achievement during the war was Ukraine’s swift integration into the European energy grid in March 2022, just weeks after the full-scale invasion began. This integration has allowed Ukraine to import energy when necessary, while also exporting energy to Europe during periods of relative stability. This bilateral energy relationship underscores Ukraine’s evolving role as both a supplier and a consumer in the European energy market. The conversation also highlighted the need for increased foreign investment in Ukraine’s energy sector, not only to aid in the immediate war effort but also to position Ukraine as a vital player in post-war European energy security.
Next Steps
Ukraine’s energy strategy is not just about survival through the winter but about positioning the country as a leader in energy innovation and security. Yemchenko’s call to action for international partners was clear: “It’s time to try and to test it.” By investing in smaller-scale projects now, foreign investors can gain invaluable experience, build relationships with local partners, and be poised to play a key role in the country’s post-war recovery and energy transition. The integration of renewables and advanced battery storage, often in partnership with international companies like Honeywell, will continue to shape the region’s energy landscape. “We urge our international partners, private investors, to invest in Ukrainian energy infrastructure right now on a small scale, to receive some experience, to understand how it works,” Yemchenko explained, arguing that now is the time for international investors to consider Ukraine.
Project summary
| 2024 Meridian Summit: Resilient Power: Ukraine’s Energy Sector as a Catalyst for European Security and Investment | October 2024 | |
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| Impact Areas: | Energy and the Environment |
| Program Areas: | Diplomatic Engagement |
