Banks have already issued guarantees for over UAH 600 million. The process of accreditation of banks continues

Ukrainian Energy Exchange LLC continues to actively cooperate with banks to ensure that bank guarantees can be used as a form of security for participation in electricity auctions under bilateral contracts. Up to 50% of the amount of the guarantee fee to ensure the fulfillment of obligations may be provided in the form of a bank guarantee.

As of today, the total amount of bank guarantees provided to the Exchange by accredited financial institutions for participants of electricity auctions in the Specialized Section has exceeded UAH 600 million.

The list of accredited banks entitled to provide bank guarantees in accordance with the Exchange’s requirements includes: Ukreximbank, TASCOMBANK, Oschadbank, PUMB, Bank Pivdenny, and Sense Bank. Accreditation of new banks is ongoing. Other banks and their clients are interested in cooperating with UEEX in this market segment, so a system of counter-guarantees is being introduced.

The mechanism of bank guarantees allows buyers to manage working capital more efficiently and reduces risks for generating companies.

“Participation in specialized auctions requires flexible and efficient financial instruments. The introduction of bank guarantees as a mechanism for securing obligations is an important step towards reducing the burden on participants while maintaining the reliability and transparency of the mechanisms, and plays a key role in managing the risks of non-fulfillment of bilateral electricity purchase and sale contract. We are grateful to our partners from the banking sector and continue to expand our cooperation to attract new financial institutions,” said Oleksandr Kovalenko, CEO of UEEX.

The Ukrainian Energy Exchange continues to work comprehensively to ensure the full use of this instrument by a wide range of participants.

The list of banking institutions accredited on the UEEX is constantly updated on the Banking Services page.