Kiev Begs Russia for Gazprom Deal as it Shells Donbass Mines

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August 10th, 2015

PolitRussia – translated by Soviet Bear

photo – Reuters

Ukraine insists on a trilateral agreement on gas supplies.

On Saturday, the Minister of Energy and Coal Industry of the country
Vladimir Demchishin stressed in an interview with “Radio” Freedom
“that Ukraine will continue to insist on a trilateral agreement on gas
supplies from Russia.

“We insist that this
agreement remains trilateral. This has caused some concern at the” Gazprom
“and the Ministry of Fuel and Energy of the Russian Federation”
, – he said

Thus, Kiev wants to “create
arrangements for the entire heating season, in the winter to avoid becoming a
fait accompli that the conditions have changed, which is also wrong, so that past
year formula can be sustained, it has been quite economically feasible.”

Demchishin complains that this year Gazprom did not like it, and it modifies
the conditions.

However, according to Demchishin:
“Of course, we will come out of this situation. At the moment, it is very
important to resolve the other issue – money.”

In addition, in an interview with the Minister of Energy called mines
operating in the country unprofitable.

“The work of the coal enterprises
in Ukraine is unprofitable, the amount of monthly financial losses of about 250
million hryvnia (about $ 11.6 million). Therefore, we expect that we will be
able to do a miracle and develop mines without money, it is impossible.”


According Demchishin to become self-supporting, it is necessary to
increase coal production, which requires 1 billion hryvnia. “We now see an opportunity to increase production to a level
that would give the opportunity to the mine self-sustaining. It takes a billion
hryvnia. And in a very short period – three to six months we could bring most
of these promising mines in the state of breakeven”
– emphasizes the
Minister, recognizing that the Ministry of Energy doesn’t have such amount.

Moreover, the complexity in his opinion is that most mines are located in
the area of ​​so-called ATO. “Moreover,
there are mines that are constantly shelled, which turns off the electricity. Luhansk
TPP was shelled. Therefore the supply of electricity was disrupted, 8 mines
have been closed,”
– said Demchishin.

According to his estimates, in the conditions of the shortage it is more
profitable to import it from South Africa and Poland, but the minister
understands the social responsibility of the state towards its citizens, “but the security issue is a social
issue – what to do with those people: 51,000 people are employed in these mines
which are state owned, what to do with them? “

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