Terrorists claim to have “nationalized” core DOEN asset, company refutes

The Donetsk People’s Republic (DNR), a Russian-backed terrorist organization occupying part of the Donetsk region of Ukraine, claims to have “nationalized” the Starobesheve Thermal Power Plant (TPP) of Donbasenergo (DOEN UK), the Ukrayinska Pravda news site reported on March 13, citing the statement of a DNR leader on one of the organization’s websites. The Starobesheve TPP, located on DNR-controlled territory, is the core production asset of Donbasenergo. On March 15, it generated 96% of Donbasenergo’s total electricity.

Donbasenergo has declined to comment on such developments. In its daily operational update on its website, Donbasenergo reported Starovbesheve TPP is continuing to work for the Ukrainian energy system and its power units are operating only under the orders from the state dispatcher.

Alexander Paraschiy: The “nationalization” hasn’t affected Donbasenergo or Starobesheve TPP, which is continuing to operate in the Ukrainian energy system. So clearly, the “DNR government” cannot influence its operations. Moreover, Starobesheve has not been eligible to receive any payments for supplied electricity from the Ukrainian wholesale market operator since early February (refer to our news of Feb. 5 and Feb. 19), so there is no profit that DNR terrorists can distribute and no cash that they can take from it. Indeed at this stage, the lack of payments from the Ukrainian market for the power produced by Starobesheve TPP is a much bigger problem than any “nationalization”.

Notably, another power plant working on the territory occupied by DNR terrorists, Zuyivska TPP of DTEK, was not “nationalized”. During a March 13 conference call, DTEK’s top management said it does not see a risk of the “nationalization” of its assets. Managers also stressed that they had yet to confirm the information on the “nationalization” of Starobesheve TPP (the news was already spreading before the conference call).