FALSE: Due to BlackRock’s entry into Ukraine, electricity tariffs increased to 4.52 UAH/kWh, while the “real” cost is 0.97 UAH/kWh

On social networks, particularly in Threads, information is being spread claiming that after the arrival of BlackRock in Ukraine, the cost of electricity tripled and reached 4.52 UAH/kWh, although its real cost is 0.97 UAH/kWh.

However, this is false. The current tariff is 4.32 UAH/kWh, covering only the cost of production, transmission, and distribution of electricity. The tariff was increased due to the need for repair works and restoration of generation as a result of Russian shelling of the energy system.

In September 2022, President Volodymyr Zelenskyi and BlackRock CEO Larry Fink discussed possibilities for attracting state and private investments into Ukraine. Already on November 10 of the same year, Ukraine and the international investment company BlackRock signed a Memorandum of Understanding. The document outlined that the company would assist in attracting investments for Ukraine’s recovery and economic support. In particular, it was mentioned that BlackRock would advise the Ministry of Economy on creating an investment fund — the Ukrainian Development Fund (UDF), which will involve primarily private capital. Work on creating the fund is currently ongoing.

It was after signing the Memorandum that Russians began to regularly spread fakes, claiming the company bought Ukrainian lands and now dictates its terms to Ukrainian authorities. Despite the fact that we have repeatedly debunked these messages, Russians continue to invent new accusations against BlackRock.

Since 2022, electricity tariffs in Ukraine have been increased twice:

• From 1.44 to 2.64 UAH/kWh starting from June 2023;
• From 2.64 to 4.32 UAH/kWh starting from June 2024.

However, the increase in electricity costs is not related to BlackRock. Tariffs began to rise due to Russian attacks on Ukraine’s energy infrastructure, which the Kremlin began on October 10, 2022. During this shelling, Russia attacked energy infrastructure in almost all regions of Ukraine. Major thermal and hydroelectric power plants, as well as Ukrenergo substations, were affected. At that time, the former head of the state company Volodymyr Kudrytskyi reported that 40-50% of the capacities that the Ukrainian system had before the invasion were temporarily lost. Further attacks on the energy system continued.

In June 2023, Energy Minister Herman Halushchenko explained that raising tariffs would ensure the stability of the energy system. “If we had not made this decision, next winter we would have been without light,” the minister pointed out.

Ukraine also lost 10 GW of main generation capacities due to the occupation of energy infrastructure. In particular, the Zaporizhzhia Nuclear Power Plant, the Zaporizhzhia Thermal Power Plant, the Vuhlehirsk Thermal Power Plant, the Luhansk Thermal Power Plant, and others are temporarily uncontrolled.

In 2023 and 2024, shelling of energy facilities continued. Thus, the repeated increase in tariffs in June 2024 was also associated with Russian attacks. For example, after the enemy’s attack on March 22, 2024, Ukraine lost about 9 GW of capacity. Funds were directed to repair campaigns and the restoration of state-owned generation.

It is also unclear why the author of the post decided that the “real price” of electricity is 0.97 UAH/kWh. As of June 2024, even the production cost of 1 kWh by the state-owned Energoatom exceeded the sum mentioned by the author and was 1.07 UAH/kWh. According to the enterprise’s calculations, the costs for transmission, distribution, and supply amount to another 3.25 UAH/kWh with VAT. This cost includes a transmission tariff — 0.63 UAH/kWh; profit for the Distribution System Operator and Ukrenergo, which is directed to network development. Thus, the production cost of state nuclear energy delivered to the consumer is at least 4.65 UAH. In contrast, the current tariff is even lower—4.32 UAH/kWh.

Deputy Minister of Energy Svitlana Hrynchuk emphasized that the current tariff consists exclusively of cost expenses without any markup. She pointed out that the market cost of 1 kWh exceeds 7.5 UAH.

Earlier, we debunked a fake that allegedly the tariff for electricity would soon rise to 7.5 UAH per kWh.