07.07.2025
Support for domestic energy equipment manufacturers was the topic of the Energy Freedom talk show by Energy Club on July 4. Energy security and the protection of the power system under constant shelling are the number one issue for Ukraine today. The need to provide enterprises with equipment is more acute than ever. Every day, Ukrainian energy workers require transformers, high-voltage equipment, cable products, and a host of other components for repairs and restoration. A strategic choice must be made: depend on imports, waiting months for deliveries, or develop our own production capacities?
Energy Club invited heads of Ukrainian energy equipment manufacturing plants, representatives of energy companies (generating, distribution, and transmission system operators), heads of procurement departments of industrial enterprises and municipalities, and representatives of government structures and financial institutions to an online discussion dedicated to supporting domestic energy equipment producers.
The participants of the online discussion spoke frankly about what hinders effective cooperation and what needs to be done for Ukrainian plants to operate at full capacity and for energy companies to receive quality products on time. Supporting the national producer is not just about patriotism, but also about the economy – jobs, taxes to the budget, fast logistics, and energy resilience.
Dmytro Kazavchynsky, CEO of CLIXAR, a company that has been developing and manufacturing security seals for metering devices for most energy companies in Ukraine and about 80 countries worldwide for over 20 years, shared his perspective. “Our main production facilities are located in the Odesa region, and we have a principled position not to change our location, although various countries offer very favorable conditions,” he said. “We may be acting not very rationally, but patriotically. We supply energy companies with products that help control and optimize processes. And this is very important today because the price of electricity is constantly rising due to interference and theft. Despite all circumstances, we are improving our products. We do not feel support or help from the state, except for the ‘5-7-9’ project – a program for affordable lending to small and medium-sized businesses. This is the only more or less useful program. The main problems hindering development are a shortage of people and shelling. Nevertheless, we continue to work.”
Oleksandr Symonov, Director of Marketing and Sales at PJSC “Odeskabel,” noted: “Recently, the Government adopted Resolution No. 782 dated July 2, 2025, on expanding the list of localized goods, including cable and wire products. The industry continues to work, regardless of where the enterprises are located in Ukraine, and since the beginning of the full-scale invasion, it has been supplying quality products to energy companies, obtaining the necessary materials by any means necessary. There are, of course, issues related to delivery times, but as a rule, we maintain a certain rhythm that allows us to manage the situation. Localized producers with warehouses in the country can quickly change the production process. For example, for the needs of ‘Ukrenergo,’ we can quickly manufacture products so that we ourselves do not remain without electricity. We must also remember the multiplier effect. If we import products, we pay taxes and salaries to another country. If we buy what we need in Ukraine, the money returns to the business, which then pays for electricity, its distribution, and so on.”
Regarding development opportunities, Symonov added: “We feel immense pressure from imports, especially products from Chinese manufacturers. The last tender at ‘Kyivstar’ showed that the prices offered by Chinese manufacturers were at 60% of the cost of our materials. If this trend continues, there will be no point in producing. We need state support in this area, and frankly, we do feel it, thanks to the ‘5-7-9’ program, and our consumers who buy products retail receive cashback. I am pleasantly surprised by the Government’s initiative to implement the ‘Made in Ukraine’ policy for the development of Ukrainian producers. It supports production, exports, and a draft law is being developed that will allow for the procurement of equipment.”
“The national producer can be a conductor of new technologies,” he continued. “There are competent people in the country. For example, ‘Odeskabel’ exports 20% of its products to European Union markets and understands how distribution networks operate in other countries. And most importantly, what would be very good for us as a manufacturer is if the strategic development of the energy network was clear for at least 5 years ahead in terms of the future application of new technologies. This would allow us, based on these programs, to develop and implement new technologies that the market needs with our own funds. The main task we are currently performing is the preservation of human capital and equipment.”
Mykola Markheva, Head of the Department of Automation and Optimization of Business Processes at JSC “Ukrainian Distribution Networks” (UDN), emphasized that the development and support of the national producer of energy equipment is one of the key tools for strengthening energy resilience. “This is not just support for industry, but a strategic step towards strengthening the economy, ensuring energy autonomy, and enhancing national security,” he stated.
“From an economic point of view, it means creating jobs and tax revenues for the budget of Ukraine. When the state buys Ukrainian, currency does not flow abroad, and support for domestic demand ensures a stable workload for Ukrainian enterprises,” he stressed. “From an energy security perspective, it means speed and flexibility, as Ukrainian enterprises can adapt customer’s technical solutions to our conditions, and in crisis situations, they can perform on-site visits, modernization, and equipment manufacturing in the shortest possible time. The technical compliance of Ukrainian producers can and does create competition for imported equipment. Crucially, from the point of view of technological and strategic independence, is the rejection of critical imports. Previously, a significant share of the market was occupied by equipment from Russia, Belarus, and some CIS countries, and the transition to our own developments or production according to European standards is the key to independence. Furthermore, supporting the domestic producer is a stimulus for the development of our own engineering.”
Markheva added, “The National Energy and Utilities Regulatory Commission (NEURC) gives preference to the procurement of Ukrainian products in investment programs; imports are possible only if such equipment is not available in Ukraine. To support the domestic producer, it is necessary to legally enshrine the priority of the local producer in public procurement, create tax incentives, provide access to cheap loans under state guarantees for updating manufacturers’ equipment, create a transparent market for technical regulation – fair certification, absence of protectionism for foreign players – and a communication campaign to promote the ‘Made in Ukraine’ brand in the energy sector, including among international donors.”
Svyatoslav Kozlenko, acting General Director of JSC “Khmelnytskoblenergo,” reported: “JSC ‘Khmelnytskoblenergo’ is a distribution system operator, part of Ukrainian Distribution Networks, and part of a state-owned company. This undoubtedly obliges us to adhere to the clear principle of ‘our own for our own,’ so to speak. We supply energy to manufacturing enterprises and buy products from them.” He continued, “Within the Khmelnytskyi region, our company services 20,000 kilometers of distribution networks and over 600,000 consumers. Our task is the uninterrupted and reliable supply of electrical energy. A large portion of our consumers are producers of goods. Procurement is one of the key processes of any business, and ours especially. We spend several billion hryvnias annually on procurement and set ourselves the task of maximizing procurement efficiency to get the best result, income, and profit. Our priorities are a ban on the purchase of goods from the aggressor country and giving priority to Ukrainian manufacturers.”
Oleh Ivasyk, Technical Director of JSC “Khmelnytskoblenergo,” added, “We are determined to support our domestic manufacturer, without waiting for imported equipment, and we are ready to continue working in this direction.”
The meeting participants wished all enterprises and their employees safety, acknowledging that without people and without equipment, Ukrainian producers and energy workers will not be able to achieve their common goal.
