Black gold of Donbass: there's many a slip 'twixt cup and lip of Kiev

There is the interview to the former chief engineer of mine 12 -bis and nowadays the rebel with a call sign «Miner»: there is a coal on Donbass and there is a lot of it, but it is better for Kiev nationalists to starve the rest of Ukraine to death than to stop the war, to recognize Novorossiya and to start buying coal from Donbass.
— How do you estimate an unexpected announcement of the First Deputy Minister of Energy and Coal Industry of Ukraine Yury Zyukov that Ukraine is ready to buy coal from LNR and DNR?
I consider that on November 4 of this year there was very sign event in Novorossiya’s life: official Kiev declared with the help of the First Deputy Minister of Energy and Coal Industry of Ukraine Yury Zyukov that independent one is ready to buy coal from LNR and DNR. But it is no other than official recognition of independence of these new educations and ascertaining of the fact that Ukraine can’t exist without Donbass.
We remember how for more than twenty years Kiev claimed that Donbass is the heavy inheritance which got to Ukraine after disorder of the USSR. And it compelled to contain an enclave purely out of pity to that non-people living in this territory. And how many it spends for the grant of the coal enterprises of Donbass without which it would be possible to do easily? How many the Ukrainian writers used up the paper kilometers with joyful information on the mines of Donbass destroyed as a result of military operations. The startlers about the huge sums of economy of budgetary funds were made if Ukraine, being reoriented, will refuse the coal industry and start buying the coal abroad. That the budget will only win, having stopped grants to coal miners of Donbass and on these means the country will be able to provide completely itself with the American or Southern African coal.
As I see, the high-ranking Ukrainian officials earning huge amounts of money on coal and an energy were always at the beginnings of the origins of this promotional campaign. Here and now, having lulled people loud publications in the press, specialists in a kickback of the budget turned the multimillion transaction on treasury division. And everything turned out at them. Having taken an opportunity for the state account the contracts were concluded for delivery more than one million tons of coal from the Republic of South Africa which has to be delivered by sea to the ports of Ukraine. It was presented as a clear victory over volatility from the risen region. But that one million tons won’t solve a problem of coal deficiency in warehouses of the Ukrainian heat stations which need at least, three million more tons for a season remained behind the scenes.
The price declared in the contract looked attractive, but it was the coal price in the port of delivery to which it was necessary to add still the cost of delivery of a product to factories on coal enrichment (the product was bought low-quality at obviously inflated price), works on enrichment of this coal and also the subsequent its delivery to consumers. And it increased the price declared officially, at least, by 25−30%. But why the inhabitant has to know about it, let will be glad the progress of the talented government.
But as it appeared, the official price strongly differed from the real. Not prooflessness of my statement is confirmed by two interviews of already mentioned Yu. Zyukov. I ask to pay attention to the price sounded by him.
— «The deputy minister reported that Ukraine is ready to buy the Donbass coal on 850 hryvnia for ton while the coal bought in the Republic of South Africa cost to the state 1 thousand 100 hryvnia per ton.«
— «According to Zyukov, about 2,1 million tons of coal for which the capital of Ukraine can pay the balance price are in the territories occupied by rebels. Today this figure pays off in such a way that if in balance the cost for ton of coal makes 850 hryvnia without value added tax that is equivalent to 65 American dollars, Kiev is ready to transfer on 1100 hryvnia that makes 85 dollars. At the same time it recognized that this price will be much more favorable, than that which Ukraine pays for import coal. It will allow the state to save to 25% of the coal cost of the Republic of South Africa».
So at what price the coal was bought???
But the government wasn’t limited to one transaction with the Republic of South Africa. It began to deliver the coal from Poland. It concluded the contract for delivery with the Polish firms more precisely. However it appeared that the coal delivered by Poles has the Russian origin and is extracted in Kuzbass. Also the delivery price of this coal to the power generating enterprises of Ukraine became clear — it is 96 US dollars per ton. Though today the Russian firms are ready to deliver coal from Kuzbass on 85−90 dollars per ton. You are able to count: a difference from 6 to 11 dollars per ton. And at the capacity of purchase of one million tons «large sum» turns out quite good. And you say that Ukraine has an empty budget.
After all when the winter starts breathing cold in a face, the money appears. However, in the beginning the Ukrainian government tried to receive the coal free of charge at the strategic partner — the government of Poland (in decades they got used to receive energy carriers on credit from Russia or to steal by unauthorized selection from a gas pipe). But they forgot that in Europe the principle «Don't let interfere the friendship with money» predominates. Therefore the request of Ukrainians offended the nobility by the impudence and publicly rejected the asking party in the most humiliating form.
93 state mines worked in Lugansk and Donetsk areas in a peace time.
24 from them were in territories which are controlled by the Ukrainian troops and 70% in the part which is under control to militiamen. 89 thousand miners worked there. Now almost all these mines stand though only seven are destroyed. The others don’t work. The Ukrainian nationalists rejoiced at that fact, savoring the sums of the state funds saved on miners.
However on Friday, October 31, the Ukrainian prime minister Arseniy Yatsenyuk grinding the teeth was compelled to recognize that because of the conflict in the east of the country where all mines are located generally, deficiency of coal in Ukraine reached 4 million tons. He reported with regret that coal reserves at the power enterprises of Ukraine will be enough maximum for 3−5 days. Million tons of the coal from the Republic of the South Africa and six hundred thousand tons from Poland (it is the Russian) catastrophically aren’t enough to provide the power generating capacities of Ukraine and the country risks to remain also without electricity in the winter. So Ukraine taking the second place in Europe on coal production because of the government started importing steam coal for the first time for many years for ensuring requirements of the heat stations.
Experts have no united point of view on these plans of the government. One consider that such situation is created artificially (and they are near to truth as showed the latest events) and others are sure that this is the beginning of crisis settlement on Donbass.
I will quote the director of power programs of the Razumkov Center Vladimir Omelchenko: «Now the situation with coal is really critical in the country, but I think that someone intentionally brought it to such state. Also it is an example of short-sightedness of the Ministry of Energy which needed not to delay, but to buy and take out this coal from Donbass even in the summer. And now … Buying coal from «DNR» and «LNR», Ukraine actually recognizes these terrorist organizations and finances them. I don’t exclude also that Zyukov was asked in Moscow to make such statement».
But I was especially pleased by the news sounded by mass media of Ukraine on November 8 of this year: The general prosecutor’s office called the Minister of Energy Prodan in for questioning for hearing of recently initiated proceedings on huge plunders of budgetary funds by employees of this Ministry within investigation. The conclusion will be drawn on his status after interrogation in this case. I hope we will get to know the price of the bought coal in the Republic of South Africa. And it can lead to cancellation of this contract because of its corruption component and, as a result, deliveries from Africa.
The other day the same Prodan made the statement disavowing Zyukov’s performance about intention to buy coal from LNR and DNR. So where Ukraine will buy coal or the heat station will be closed? Well then there is one mean for a warming up: «Who doesn’t jump, that is Moskal». Prepare and start…
— In case of achievement of the arrangement on deliveries by the parties, are any risks at its performance? And what can you say about the subsidies of Donbass?
I have to emphasize that power plants of Ukraine can work either on gas, or on coals of «A» and «T» brands. However the grades bought by the government in South Africa as showed their use at heat stations, aren’t suitable for normal functioning of stations. The equipment of power stations is calculated on local raw materials. Therefore Ukraine has no other alternative to coals of Donbass as all-knowing Ukrainian mass media wouldn’t write.
I think the resumption of negotiations is a matter of time. And junta almost didn’t have it, as there are no funds for coal and currencies for an advance payment for the Russian gas. The power stranglehold is tightened by fast rates on a neck of Ukraine.
Yu. Zyukov tried to prepare a position of Ukraine in the forthcoming negotiations as a position of the dominating party dictating the conditions to the second participant.
He sounded that the transaction with «DNR» is possible only if «the money received for the sold coal is used on a salary, first of all on payment of the electric power and on the solution of social problems in the mine cities and settlements». As for the mechanism of calculations, he provides transfer of funds for accounts in the State Banks which are out of the anti-terrorist operation zone. «Thus we satisfied old debts in September», reported the official.
The payment for coal will be transferred only after it arrives on the Ukrainian power stations and its quality will be checked. «We won’t pay a ton beforehand, as it is the same as to pay Somali pirates beforehand». In the impudence he even sounds the price at which they agree to buy coal. But we already somewhere heard it. Everyone knew what similar dictatorship of Kiev at negotiations with Moscow on gas ended. But Ukraine is unrecoverable and finds it possible to dictate the conditions, forgetting that it is possible to demand something not in its situation.
Do you know in what the cunning Ukrainian plan consists?! And the plan is really good. Officially everything looks purely and decently. But let’s analyze everything told by Zyukov. This negotiation is arranged by a number of indispensable conditions:
- The money received for the sold coal will be used on a salary, first of all on payment of the electric power and on the solution of social problems in the mine cities and settlements;
— Transfer of funds for accounts in the State Banks which are out of the anti-terrorist operation zone;
— The payment for coal will be transferred only after it arrives on the Ukrainian power stations and its quality will be checked.
For those who isn’t connected with business I will try to explain. This transaction is the most primitive cheat by the skilled swindler. After only the words of the potential buyer: «We won’t pay any ton beforehand as it is the same as to pay Somali pirates beforehand «— the seller can get up because of a negotiating table with confidence that his vis-a-vis is the dishonorable person who planned the banal cheat.
When did someone pay pirates, being nothing dependent on them? It is the first.
Secondly: If money is transferred in the Ukrainian State Bank out of the anti-terrorist operation zone, so how the insurgents will be able to hold money for the solution of social problems in the mine cities and settlements on territories uncontrollable to them? In addition, the banking system doesn’t work yet.
And thirdly: coal will be delivered to power stations, burned and then it will become clear that it was not of the quality that is stipulated in the contract. Terms of the contract aren’t satisfied. There is no money.
Well what contracts is it possible to sign with the present power of Ukraine even if the top officials of its Government behave as small swindlers?
Though there is nothing surprising in it. It is enough to read some of the resolution accepted by them last days:
1. To cancel transfer of money to pensions and social payments to the population in the territory which isn’t controlled by anti-terrorist operation forces.
2. To cut off the gas and electricity to the population for failure to pay in the territories which aren’t controlled by anti-terrorist operation forces.
And these morons don’t understand that having refused the social obligations to people what right do they have to demand the payment from them when deprived of the opportunity to pay?
As for so-called dating of Donbass. It is explained very simply: according to the indication of the Government all large payers of taxes of an enclave made payments in the budget through tax administration of the central region of Kiev. Billions left regional budgets. Kiev larded and redistributed the means earned by us to us. Besides, by agreement with Kiev the local oligarchs as the owners of all the large productions issued the offshore companies on the accounts of which the main profits on their activity settled and the budget was content with small remains.
And in the coal industry the scheme was fulfilled allowing the top officials of the Government to steal billions from the means intended to miners. But it is separate story, a subject for future interview.