Centrenergo may buy UAH 1.6 bln of coal from Akhmetov

PJSC Centrenergo energy generation company has tentatively agreed to coal purchases of UAH 1.6 billion from DTEK Sverdlovanthracite LLC by the end of the year, according to an online posting from the National Commission on Securities and the Stock Market.
The cost of the transaction equals 24.3% of the value of assets owned by Centrenergo, estimated as of the end of 2015 at UAH 6.6 billion.
In January and February 2016, some media reported that Ukrainian coal mined in the areas beyond government control were purchased by Ukrainian thermal power plants, rather than coal from South Africa. Media reports claimed that people close to pro-Russian politician Viktor Medvedchuk, who participated in Ukraine-Russia talks on the Donbas settlement, were controlling the illegal purchase of coal.
On February 4, 2016 then-Minister of Energy and Coal Industry Volodymyr Demchyshyn denied reports about coal purchases from the Anti-Terrorist Operation zone, under the guise of South African coal, whose price is much higher.
On March 3, the head of Centrenergo`s Investment Department stated that the company was planning to begin burning gas coal, which was available in surplus in the country, instead of scarce anthracite coal grade, to ensure operations of units No. 2 and No. 5 at Zmiyivska  thermal power plant, which operates ten units.  The statements were confirmed by Energy Minister Ihor Nasalyk, who said that the plant conversion would cost UAH 175 million.
On July 13, political expert Volodymyr Manko wrote that Centrenergo continues to supply anthracite coal from the occupied territories of Donetsk and Luhansk regions, though claiming it is  South African coal, which is supplied to Ukraine via Russia.

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