SAR gives up on coal supplies to Ukraine

African coal supplier referred to the image losses the company suffered due to the criminal proceeding opened in Ukraine in regard to the wasteful spending in the course of the purchase.

Director of the Ministry of Energy of Ukraine Vladimir Zinevich announced the breach of contract with the SAR on November 11. According to him, the African side withdrew from delivery owing to the inquiry into the case of coal purchase by the Ministry of Energy of Ukraine on behalf of the General Prosecutor’s Office of Ukraine.

Investigators interrogated Minister of Energy and Fuel Yuriy Prodan on November 10. He was asked about the details of wasteful spending of budget money when 250 thousand tons of coal was bought from the South African Republic. A series of media resources reported that President of Ukraine Petro Poroshenko himself insisted on the criminal proceeding, indignant with the high cost of the coal – 86 USD a ton.

— The trader does not want to deal with us any longer, — complained the Director of Ukrinterenergo Ltd. — It has to tackle very complicated reputational issues with the bank, with its partners and other institutions. For the companies engaged in the international trade reputational risks are very serious.
Be reminded that Ukraine signed a contract on delivery of 1 mln tons of African coal on September 3. Official Kiev had to resort to the import of fuel, because before the Donetsk and Lugansk Oblasts supplied the country with coal. The shortage of gas and the termination of coal mining caused the deficit of energy materials and, as a result, of power supply in the country, as 50 per cent of the electricity produced in Ukraine, is generated by nuclear power stations and the rest is produced at the thermal power stations by burning gas and coal.