Photo from Ukrainian Railways Administration
Acting general director of Ukrainian railways administration Ukrzaliznytsya Maksim Blank has ordered the railways to make direct purchases of electricity on the wholesale market, according to a statement posted on his Facebook page.
According to Blank, for many years Ukrzaliznytsia has been purchasing electricity on the wholesale market and from independent suppliers, of which there are only three, that have links to each other.
"Independent suppliers, in turn, purchase electricity at the same place, on the wholesale electricity market. For many years, there have been only three suppliers - Ukrenergotranzit, GazEnergo and Energotrast," Blank wrote.
"They all are affiliated with each other. We see a long-term collusion with revenues of UAH 400-500 million per month. Over the years when this scheme has been in place, energy suppliers have secured patrons in the highest offices. And obviously they are not planning to lose such a lucrative source of income as Ukrzaliznytsia," the acting director said.
Blank said that the energy suppliers transfer the funds received from Ukrzaliznytsia to offshore accounts.
"So I have given instructions to carry out purchases on the wholesale market and prepare to hold new tenders for the purchase of electricity, which, among other things, will take into account the tax credibility of suppliers," Blank said.
Earlier, UNIAN reported that the State Administration of Railway Transport of Ukraine (Ukrzaliznytsia) may face disruption to passenger transportation in summer season due to a shortage of required spare parts for railway transport.