Oschadbank starts opening escrow accounts for electricity importers for Ukrenergo auctions

Oshchad starts opening escrow accounts in euros for non-resident companies that plan to participate in auctions for access to interstate power transmission crossings held on the auction platform of NPC Ukrenergo.

According to the auction rules, a market participant must open an escrow account only with a financial institution selected by the Auction Office and with which the Auction Office has entered into a relevant agreement. Currently, Oschadbank is the only financial institution that provides this service.

"The opening of escrow accounts in euros for non-residents finally gives them access to joint auctions for the distribution of interstate power transmission crossings. At the first stage, such accounts will be opened for those participants who are interested in bidding on the Ukrainian-Romanian crossing section. In the future, the Ukrainian-Moldovan crossing will be opened. We are already in talks with companies from the Romanian electricity market and look forward to expanding the geography of interested countries. I am sure that the introduction of trading under European rules will contribute to the deeper integration of our markets and, in the future, to the financial stabilization of the Ukrainian energy market," said Yuriy Katsion, Deputy Chairman of the Board of Oschadbank for Corporate Business.  

The joint efforts of the National Bank of Ukraine, Oschadbank, and Ukrenergo following the merger of the Ukrainian power system with the European network of electricity transmission system operators ENTSO-E have contributed to the harmonization of financial sector regulations, which have now enabled non-residents to open escrow accounts in euros for settlements in the electricity market.

Oschadbank has been cooperating with NPC Ukrenergo to support settlements and provide financial guarantees for bidders at the interstate crossing under the new mechanism since the synchronization of the power systems.

For more information on opening escrow accounts, please follow the link.