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PM asks SBU immediately find out who is behind redistribution of coal market
12.11.2014 | 16:06
Information and Communication Department of the Secretariat of the CMU

"Due to various events regarding the so-called check, Ukraine lost the opportunity to purchase coal in other countries, except Russia and the territories controlled by the so-called DNR and LNR. I ask the Security Service to immediately investigate the situation and to find out who is behind the redistribution of the coal market, it's a matter of national security," Prime Minister of Ukraine Arseniy Yatsenyuk stated at the Government’s meeting on Wednesday, November 12.

Prime Minister has instructed the Minister of Energy and Coal Industry of Ukraine Yurii Prodan to immediately continue negotiations on coal supplies to Ukraine and to "do everything possible to ensure the country with coal."

Arseniy Yatsenyuk has stressed that this process should be public and transparent, "Make public all materials, invite the press as well as public organizations. Frankness and transparency is our strength. Weakness of those who are trying to meddle in the carbon market is that they are making this "under the table". Pull out everything on the table - why the country has now become dependent on commercial business interests of certain groups," the Prime Minister asked Yurii Prodan.

Moreover, Arseniy Yatsenyuk has asked the Minister of Foreign Affairs Pavlo Klimkin to provide diplomatic support in resolving the issue, "If you need diplomatic support, I am asking the Foreign Ministers in the countries where we need to get coal, please, join in, because this is a serious issue."

Minister of Energy and Coal Industry of Ukraine Yurii Prodan has reported that today there are about 1 million 700 thousand tons of coal at the warehouses of the Ukrainian power plants. According to him, these reserves are insufficient in the autumn-winter period.

To stabilize the situation, the Defence Ministry purchased coal in South Africa, "the PJSC "Centrenergo" managed to accumulate this month 146 thousand tons of coal. We’ve received additional 87 thousand tons of coal this month."

According to him, the supply of coal from South Africa was the most optimal. He said that the Ministry of Energy and Coal has checked all the circumstances of the conclusion of contracts as well as pricing, certificates concerning the technical and economic characteristics of coal: "The price fully meets the market one. It has been formed on the basis of the coal price in the port of Richards Bay, South Africa. As of today, all the documents provided by the company on the price of transportation, handling and transportation of coal to power plants are transparent."

However, according to the Minister of Fuel and Energy, the company, which supplied the coal from South Africa, said that it will not continue supplying coal to the company "Centrenergo", "Due to the current serious blockage of the company’s work, leading European traders refuse to supply coal, because at any moment either shipment of coal or payment may be stopped in the port. Today, businesses are rather suspicious of our proposals."

In this regard, according to Yurii Prodan, there is a threat of the passage of the autumn-winter period: "There are two options - either we buy scarce coals in Russia, or we will be forced to buy the coal from areas controlled by Russian groups in eastern Ukraine."

Yurii Prodan has added that coal, which we can purchase in Vietnam, Australia and the USA, will cost by 15-20% more than that proposed by the firm from South Africa. At the same time, the Ministry of Energy and Coal Industry keep on looking for alternative ways to the coal supply and applies once again to suppliers "to continue the work and to assure that our company will strictly follow all the obligations they took to foreign companies as to ensure the shipment of coal and payment."

 

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