Ukrainian Energy Minister German Galushchenko urged leading global energy companies to dedicate a portion of their profits to repairing Ukraine’s energy infrastructure. In a discussion with Politico, he noted that profit growth during the war has boosted earnings for many in the sector.
He said that large energy firms are earning substantial, unexpected profits as a result of the conflict. He estimated this surplus, generated by the wartime environment, at more than $200 billion, arguing that the war itself creates the windfall.
According to Galushchenko, it would be fair to share a portion of these funds with Ukraine to help rebuild its energy system. Politico explains that the $200 billion figure refers to the profits of the five biggest energy groups for 2022, including Shell and BP from the United Kingdom, Chevron and ExxonMobil from the United States, and Total from France. Earlier reporting noted a record 2022 profit for these firms at about $199.3 billion.
Galushchenko urged the companies to follow the example of the Ignitis Group from Lithuania, which announced plans to allocate roughly 10 percent of its profits toward Ukraine’s infrastructure rehabilitation.
The minister also called for tightening enforcement to prevent any evasion of sanctions on energy shipments from Russia. He warned that such gaps could prolong the conflict, and he proposed an alternative approach where Kiev could export nuclear fuel to reduce European dependence on Moscow for energy supply.
funds for recovery
The Russian military has intensified missile strikes on Ukrainian energy facilities since early October. As a result, many power plants, gas facilities, and transmission substations that connect Ukraine’s grid have suffered damage. In some areas, heating and electricity remain unstable, and repair efforts continue at critical sites.
In November, Ukrainian President Volodymyr Zelensky indicated that rebuilding the country would require more than one trillion dollars, including extensive energy infrastructure updates.
Analysts from the United Nations, the European Commission, the World Bank, and the Ukrainian government project a need for around 14 billion dollars in 2023 to restore essential infrastructure and support both public and private sectors. They also note that the total cost to rebuild after the conflict could rise above 411 billion dollars, with the figure continually changing as assessments evolve.
Officials emphasize that energy infrastructure, housing, critical facilities, the broader economy, and humanitarian demining are top priorities for the current year.
Ukrenergo described the state of Ukraine’s energy system as fragile in February, with leaders stressing that short periods of non-stop operation do not signify a complete victory in the energy battle. Direct damage to the energy sector reaches hundreds of millions of dollars, while broader economic losses run to billions. Major thermal and hydroelectric stations, as well as key substations, suffered damage during bombardments.
At the end of 2022, the head of Ukraine’s Energy Ministry said a full restoration of the energy system would be feasible only by the summer of 2023, provided the country avoids renewed shelling and ongoing hostilities.