New rules of the game: PrivatBank opens access to the energy exchange for thousands of companies
28 July 2025 21:19
JSC CB PrivatBank has officially been included in the list of accredited banks whose bank guarantees are accepted by Ukrainian Energy Exchange (UEEX) LLC to participate in auctions for the sale of electricity under bilateral agreements in the Specialized Section. This was reported by "Komersant Ukrainian" with reference to information from the UEEX.
The decision expands the toolkit of market participants and opens up new opportunities for companies operating in the energy sector or being large electricity consumers.
What has changed in practice?
Thanks to PrivatBank’s accreditation, companies can use the bank’s bank guarantees to secure their obligations under exchange contracts. According to the UEEX Regulations, up to 50% of the guarantee fee can be paid in the form of a bank guarantee. This means a reduction in the financial burden on businesses in the short term, as companies do not need to “freeze” the full amount of guarantees in cash.
In addition, PrivatBank is the country’s largest bank with an extensive network and a broad customer base, including small and medium-sized businesses. Its participation in the exchange guarantee system opens the door to the energy market to an even wider range of businesses that may have been excluded until now due to limited access to guarantee instruments.
Context: why the market needs it
Institutional strengthening of guarantee support for trading on the energy exchange has become especially relevant in the context of the electricity market restructuring that has been underway since 2019. Bank guarantees are not only a means of liquidity management for participants, but also a mechanism that increases the transparency and predictability of contractual relations in the energy market.
Today, the list of accredited banks includes 10 institutions, including:
- Ukreximbank;
- TASKOMBANK
- Oschadbank
- FUIB;
- Pivdenny Bank;
- Sense Bank:
- Ukrgasbank;
- Credit Agricole.
The UEEX has also introduced a counter-guarantee system that allows new banks to be connected through the mediation of already accredited institutions. This helps to expand the financial base and attract new players to the electricity exchange market.
Accreditation of PrivatBank is not just another step. It is a strengthening of the financial infrastructure of the market. Business gets more flexibility in managing working capital, and the market gains more trust and stability,” said Oleksandr Kovalenko, UEEX CEO.
“Against the background of energy market liberalization and the search for more flexible financial mechanisms, such decisions are of strategic importance. UEEX continues to work with the banking sector to develop a reliable, open and efficient exchange system in Ukraine.
What you need to know about the Ukrainian Energy Exchange
The Ukrainian Energy Exchange (UEEX) is a key element of the Ukrainian energy market infrastructure that ensures organized trade in energy resources, including electricity, natural gas, liquefied gas, oil products and greenhouse gas emission quotas. The exchange serves as an independent trading platform where market participants can enter into contracts under transparent and market-based rules.
It was established to create a competitive, open and non-discriminatory environment in the energy sector, as well as to support the reform of energy market liberalization in line with Ukraine’s commitments under the European Energy Community.
The UEEX operates under a regulatory framework approved by the National Energy and Utilities Regulatory Commission and acts as an operator of electronic auctions, including for state-owned companies. One of its key functions is to conduct trading in the Specialized Section of bilateral electricity purchase and sale agreements, which allows participants to ensure stable supply and controlled price of the resource.
The exchange is also actively developing the bank guarantee business by accrediting financial institutions, which simplifies the participation of companies in trading and increases confidence in market mechanisms.
As of 2025, UEEX continues to expand the list of available instruments and financial partners, strengthening its role as a central element of the country’s energy economy.
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