WASHINGTON, D.C. - DTEK, the largest privately owned vertically integrated energy holding in Ukraine, has been approved for membership in the U.S.-Ukraine Business Council (USUBC), the USUBC executive committee announced today on behalf of the entire USUBC membership of over 150 companies and organizations who have business operations, investments or other development programs in Ukraine.

DTEK is a vertical integration of enterprises which has built an efficient production chain, from coal production to electric power generation and distribution. Cooperation between the coal mining enterprises and generating companies, the introduction of advanced technologies, the use of professional management and balanced social policy has enabled DTEK to be the leader in the private fuel and energy market of Ukraine.

Over 52,000 people work at the DTEK enterprises located in the Donetsk, Dnepropetrovsk, Lugansk and Zaporozhye regions of Ukraine. DTEK’s development strategy for the forthcoming years foresees an increase in corporate governance efficiency, optimization of key business processes, the introduction of new technologies and expanding into new energy markets.

USUBC have been meeting with DTEK officials regularly for the past two years in Kyiv and in Washington, D.C. USUBC works most directly with Alexander Tolkach, Director for External Affairs and with Kirill Ermichine, Head, Department of International Public Affairs.  Alexander Tolkach will represent DTEK on the USUBC board of directors.

INTERNATIONAL INTERESTS
"USUBC is very pleased to have the opportunity to work with DTEK as they are interested in improving international energy policies and expanding their interests to include business arrangements with financial institutions, equipment and service suppliers and other businesses in the USA and the European Union," said Morgan Williams, Director, Government Affairs, Washington Office, for the SigmaBleyzer Private Equity Investment Management Group, who serves as President of the U.S.-Ukraine Business Council (USUBC).  "DTEK is also interested in expanding its export of energy to the EU countries."  

DTEK was established in 2005 to run the energy assets of Rinat Akhmetov’s System Capital Management Group (SCM, Donetsk). The Group’s corporate structure consists of three elements: a Dutch holding company (DTEK Holdings B.V.), the corporate centre (DTEK LLC with headquarters in Kyiv and Donetsk cities) and operating companies located in four regions of Ukraine.
 
DTEK Director for External Affairs Alexander Tolkach noted “We are very pleased that USUBC has accepted DTEK as a member.  We have made great efforts to establish management systems and practices that are up to the world standards - in all spheres of our activities, from corporate governance to safety issues.  We look forward to contributing our views to the U.S.-Ukraine Business Council (USUBC) and to benefiting from the information we will obtain and the relationships we will develop”.
 
REFERENCE 
DTEK is the first private vertically-integrated power company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The enterprises of DTEK build up an efficient operational chain of coal production and preparation, electricity generation and distribution.
 
The coal business of DTEK includes Pavlogradugol (consisting of ten coal mines), Komsomolets Donbassa Mine and five coal preparation plants.
 
The power generation business of DTEK is represented by Vostokenergo and the associated Dniproenergo Company, where DTEK owns 47.55%.
 
Service-Invest, PES Energougol  and the associated Donetskoblenergo Company, where DTEK owns 30%,  represent the electricity sales and supply business of DTEK.
 
DTEK also holds a 39.98% stake in Kyivenergo, which provides a full cycle of energy supply to Ukraine’s capital, with a unified process for production, transport and supply of heat and electric energy.
 
ABOUT USUBC 
The U.S.-Ukraine Business Council (USUBC), a not-for-profit business trade association founded in 1995 and headquartered in Washington, D.C., now has over one-hundred fifty members. Membership in January of 2005 was eight, in January of 2007 was 22 and reached 100 by January of 2009.  The complete list of USUBC members can be found at: http://www.usubc.org/members.php. For a list of the USUBC board of directors go to the following link:
http://www.usubc.org/site/u-s-ukraine-business-council-board-of-directors.