Separatists from LPR receive almost half of the value of coal supplied from the occupied territories to Ukraine
Separatists from the Luhansk People’s Republic (LPR) receive 47% of anthracite value supplied from the occupied part of Donbas to PJSC Centrenergo as taxes. This was outlined in the conclusions of the Security Service of Ukraine. The corresponding data is contained in the decision of the Severodonetsk City Court of Luhansk region of 2 December 2016.
The Minister of Fuel, Energy and Coal Mining of LPR directs approximately 47% of the taxes received from the export of coal from the above-mentioned coal enterprises into the budget of LPR .
These funds are used to pay salaries to members of separatist groups of the Luhansk People’s Republic and also to purchase ammunition, uniforms and other items, as stated in the conclusions of the SBU (Security Service of Ukraine) which were outlined in the court ruling. According to the investigation, from 2014 to 2016 the Minister forced state and private mining companies to sell coal via state enterprise Luganskugol, which led to the creation of the said Ministry.
State enterprise Anthracite supplied coal to Centrenergo on commission with Luganskugol for the amount of UAH 1.58 billion or approximately $58 million. The deal was concluded under contract number 111/20 for the price of 1,320 UAH or $48.55 per ton.
“The Director General of Anthracite, acting upon an order of the so-called Minister, ensured the shipment of coal under the commission agreement of Luganskugol with Centrenergo, paying commission fees in the amount of UAH 60 ($2.21) per ton for Luganskugol and taxes into the budget of so-called LPR,” the investigation materials stated.
According to the Security Service of Ukraine, the funds received by Luganskugol from sale of anthracite were subsequently transferred to the accounts of a private company, Sodeystvie, LLC MKD Trade through bogus transactions or financial assistance for further withdrawal. Centrenergo operates Vuhlehirska, Zmiivska and Tripilska TPP with total installed capacity of 7,660 MW. The state owns 78.3% of the company.