Ukraine gets coal from occupied Donbas as Crimea gets electricity

Supplies of anthracite coal from the mines of DTEK (DTEKUA) located on the occupied parts of the Donetsk region have been resumed, a DTEK spokesperson reported via social media on Dec. 9. Supplies of all coal from occupied Donbas and Russia were blocked as of Nov. 20, DTEK earlier reported.

Anthracite, which is the main fuel for half of Ukraine’s thermal power plants, is only mined in Ukraine in the occupied territory. Since Nov. 20, stockpiles of anthracite at Ukrainian power plants decreased 28%, as of Dec. 9, to 0.70 mmt, which is enough for the power plants to work 30-40 days.

Alexander Paraschiy: In a comment to her post, the DTEK spokesperson said that it was energy blockade of Crimea (started on Nov. 22) that prompted the halt in coal supplies from occupied Donbas in return. The timing of the power blockade of Crimea – which finished on Dec. 7 – and the resumption of coal supplies from occupied Donbas confirms a clear link between these two events. Yet they also serve as further proof that both Crimea and Donbas are governed by the same decision-maker. Currently, Russia recognizes its influence over Crimea, which it considers to be an official part of the Russian Federation, but it claims that the self-declared republics of Donetsk and Luhansk are beyond its control.  

Politics aside, the resumption of coal supplies from the occupied territories is beneficial for Ukraine’s power system, as the anthracite-burning power plants play an important role in securing the system’s stability. The resumption is even more beneficial for DTEK, which got a chance to destock its coal mines and improve its liquidity.

Thus far, it’s hard to tell for how long the “anthracite window” will be open. Activists of the Crimean energy blockade will renew it in two-three weeks, Crimean Mejlis Chairman Refat Chubarov warned on Dec. 9. The only way for Ukraine to keep supplying power to Crimea, according to Chubarov, is to sign a new agreement with Russia in which Crimea will be explicitly identified as a part of Ukraine. Clearly, such a clause won’t be acceptable to the Russian side. Moreover, in two weeks, Ukraine may adopt a separate bill, already registered in the Rada, to officially halt all power supplies to Crimea.