How government helped Russian companies benefit from Ukraine’s coal crisis

This investigation was released by Nashi Groshi (ZIK TV) in November 2014 and supported by Objective Investigative Reporting Project.

In 2014, Ukraine has had a threat of a coal deficit. Many of the coal mines were either ruined or disabled by the war in the east of the country.

Ukraine gets some 30 percent of electricity produced at the thermal power plants that need a permanent supply of coal. To avoid an energy crisis, the government started buying coal from Russia and South Africa.

But as the journalists discovered, the Russian coal deal was robbing the country. For unclear reasons Ukraine was paying Russian logistics company to transport the purchased coal directly to the Ukrainian plants – and this luxury was costing the budget a ridiculous Hr 3,000 per each ton.

That’s at least three times more than a ton of coal costs.

As for the South African deal, it was suspicious as well. The extreme secretiveness of Ukrainian officials about the coal trade wasn’t helping, too.

The journalists of Nashi Groshi looked into the coal crisis and the government efforts to overcome it. Click CC for English subtitles.


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