Konstantin Fastovets, head of research at Adamant Capital, told the Kyiv Post that DTEK’s economic problems aren’t exactly new – the situation on the local energy market has been unfavorable for the company for a long time.

But the pandemic has significantly added to its troubles, as the lockdown imposed by most European countries in mid-March caused thermal energy prices to fall and electricity consumption to drop, while the market dictates that green energy must be consumed first, Fastovets said.

“It is a perfect storm for DTEK”, he said.

Besides, as a result of low demand, DTEK has accumulated over 2.9 million tons of coal in storage, with no buyers for it, according to Fastovets. And this coal – prone to soaking up humidity over time and losing its quality – is high maintenance. Hence, the expert suggested DTEK is shutting down these mines because its coal stocks are too high.