--- title: "The \"Invisible Missile\": Chronic Debts on Ukraine's Energy Market Threaten EU Integration" description: "UARE head Olga Evstigneeva called chronic debts in the electricity market an \"invisible missile\" that is destroying the industry economically, and stated that without a reform of PSOs and payment discipline, Ukraine's integration into the EU energy market is impossible." date: 2026-09-01T10:40:04.000Z lang: en url: https://xab.info/en/posts/chronic-debts-in-ukraines-energy-market-threaten-eu-integration tags: [ukraine-energy-market, eu-integration, electricity-debts, pso-reform, renewable-energy, balancing-market] publisher: "XAB.info" --- # The "Invisible Missile": Chronic Debts on Ukraine's Energy Market Threaten EU Integration ![Power station and transmission towers at sunset: Ukraine's energy grid under threat from chronic energy market debts](https://xab.info/media/2026/09/01/dolgi-na-energory-ukrainy-ugrozhayut-integratsii-v-es/dolgi-na-energory-ukrainy-ugrozhayut-integratsii-v-es-1.webp) ## 🎯 Key Points - Chronic debts in Ukraine's electricity market have become a systemic problem undermining the economic sustainability of the industry - UARE head Olga Evstigneeva called for revising the PSO mechanisms and tightening payment discipline to ensure integration into the EU energy market - The main source of arrears is "critical" enterprises, which consume electricity but have been unable to pay for it for years Systemic arrears in the electricity market have become one of the key threats to the economic sustainability of Ukraine's energy sector and could prevent the country from fully integrating into the unified European energy market. This was stated by Olga Evstigneeva, head of the Ukrainian Association of Renewable Energy (UARE), during her appearance on the ExProTalks YouTube podcast, the materials of which were published by RBC-Ukraine and Obozrevatel. ### The "Invisible Missile" vs. Physical Destruction According to Evstigneeva, the problem lies not so much in the absolute amount of accumulated debt as in the very mechanics of how it is formed: certain enterprises can go for months or even years without paying for the electricity they consume, while remaining connected to the grid. As a result, the financial burden is redistributed among the other market participants, creating a cumulative effect that, in the expert's assessment, is destroying the market from within. "This is some kind of invisible missile that is destroying the energy market. Because we see that Russian missiles are destroying the market physically, while these debts are destroying the market economically," emphasized the head of UARE, drawing a direct analogy between the military damage to infrastructure and the chronic financial pressure on the industry. ### PSO as a Barrier to the European Model To overcome the accumulated imbalance, Evstigneeva proposed revising the existing mechanisms of the imposition of special obligations (PSO), which, in her view, do not allow Ukraine to objectively merge with the European energy market. "Here we will need to somehow solve this issue, to cancel all these PSOs, because they simply will not let us objectively merge with the European energy market," she stressed. Thus, the reform of PSOs is seen not as a secondary administrative task, but as a condition without which the transition to the European model of settlements and pricing remains impossible. ### Payment Discipline as a Systemic Priority In addition to institutional reforms, the head of UARE pointed to the need for rigorous work on the payment discipline of market participants. In her words, consumed electricity must actually be paid for, and non-payment must not become an established practice. "For this payment to really happen, so that there are no such outrageous situations where certain enterprises can simply not pay for electricity and no one disconnects them for it," noted Evstigneeva. Without the formation of a sustainable mechanism to enforce settlements, in her assessment, any attempts to synchronize with the European market will remain formal. ### Context: "Critical" Enterprises and the Balancing Market The problem of arrears in the balancing market has previously been highlighted by other experts as well. In particular, Alexander Kharchenko, director of the Center for Energy Studies, noted that the main source of debt accumulation is so-called "critical" enterprises, which continue to consume electricity but have been unable to pay for it for years. Their status effectively exempts them from standard disconnection mechanisms for non-payment, which is what gives rise to the chronic growth of arrears in the balancing market. The combination of these factors, according to UARE, makes a full transition of Ukraine to operating under the European energy market model impossible without a prior "cleaning up" of the settlement rules and the introduction of strict payment discipline. ### Integration Prospects Against the backdrop of ongoing efforts to synchronize the Ukrainian power system with the continental European market (ENTSO-E), the issue of debt discipline is coming to the forefront. Without resolving the problem of accumulated arrears and revising the settlement rules, Ukraine risks facing a situation in which a formal connection to the European infrastructure will not be accompanied by real economic compatibility. Experts emphasize: integration requires not only technical and grid standards, but also a transparent, predictable financial environment in which every kilowatt-hour consumed in the market is guaranteed to be paid for. ## 🔍 Fact-Check Verification - [Chronic debts may hinder Ukraine's merger with the EU energy market, - UARE](https://www.rbc.ua/ukr/news/hronichni-borgi-mozhut-zavaditi-ukrayini-1788259040.html) - Первичный источник: цитаты О. Евстигнеевой с подкаста ExProTalks, контекст об А. Харченко. Все ключевые тезисы статьи подтверждены. - [UARE: Arrears in the balancing market hinder Ukraine's integration into the EU energy market](https://www.obozrevatel.com/ekonomika-glavnaya/uave-zadolzhennosti-na-balansiruyuschem-ryinke-meshayut-ukraine-integrirovatsya-v-energoryinok-es.htm) - Вторичный источник, подтверждающий суть заявления УАВЭ о задолженностях на балансирующем рынке и их влиянии на интеграцию в ЕС. Расхождений с RBC не выявлено. ## ❓ FAQ ### Q: What is the "invisible missile" in the context of the Ukrainian energy market? **A:** This is a metaphor used by UARE head Olga Evstigneeva to describe chronic debts in the electricity market. In her words, Russian missiles destroy energy infrastructure physically, while accumulated arrears destroy the market economically, redistributing the financial burden onto the other participants. ### Q: Why do PSOs hinder Ukraine's integration into the EU energy market? **A:** According to the head of UARE, the existing mechanisms of the imposition of special obligations (PSOs) do not allow Ukraine to objectively merge with the European energy market. Evstigneeva called for revising or canceling these mechanisms as a condition for the transition to the European settlement model. ### Q: Which enterprises are the main source of arrears? **A:** According to Alexander Kharchenko, director of the Center for Energy Studies, the main source of debts in the balancing market is "critical" enterprises, which continue to consume electricity but have been unable to pay for it for years. Their status effectively exempts them from standard disconnection mechanisms for non-payment.