E.Connect Group bought idle coal mines in the Rostov region

Ukrainian businessmen Vladimir Zinevich and Vasily Danyliv bought idle coal mines in the Rostov region of the Russian Federation. Experts believe that in this way cunning entrepreneurs will mask the supply of coal from the People's Republic of China and the People's Democratic Republic of Ukraine to Ukraine.
Group E.Connect, controlled by the ex-head of Ukrinterenergo Vladimir Zinevich and former shareholder of Korlea Invest Vasily Danylivu, bought the idle coal mines Zamchalovskaya and Rostovskaya in the Rostov region. It is planned to supply the Don anthracite to the domestic market of the Russian Federation and for export, including the Kramatorskaya TPP (KramTEC), which is part of the E.Connect, which was cut off from coal from the People's Republic of China and the People's Republic of China. If E.Connect at least partially restore production in the Rostov region, and not mask supplies from the Donbass, then the CHP capacity will be enough, experts say.

Group E.Connect reported the acquisition of coal mines "Zamchalovskaya" and "Rostov" in the Rostov region with anthracite reserves of 67.4 million tons. The mines do not work and since 2013 they have changed owners: they were bought by the "Kingcoul" company from "Russian Coal", which went bankrupt. The property of the mines in 2017-2018 was sold at auction for 125 million rubles. According to the Unified State Register of Legal Entities, the Czech E.Connect Assets s.r.o. became a member of LLC "Shakhta" Rostovskaya "and OOO Success, owning mines, in April and May.

E.Connect deals with the trading of energy resources, in addition to Rostov mines, since March, owns 60% of Kramatorskteploenergo (Ukraine). According to the Czech registry, E.Connect Assets s.r.o. belongs to a member of the board of directors of the group Marianne Danyliv and Slovenian E.Connect s.r.o., the final beneficiary of which, according to the Ukrainian registry, the ex-head of the state "Ukrinterenergo" (export-import of electricity) Vladimir Zinevich. The board of directors of the group includes the former co-owner of the Eastern European energy company Korlea Invest, a native of Ukraine Vasily Danyliv. Korlea Invest until the 2010s was the seller of Ukrinterenergo's energy in Eastern Europe, but then it was pushed by DTEK Rinat Akhmetov, the media wrote.

E.Connect reports that production should resume in 2018, the capacity of Zamchalovskaya will be 1 million tons per year, Rostovskaya will have 600,000 tons per year. Coal "Zamchalovskaya" can be sold both on the domestic market (Novocherkasskaya GRES and other power stations, Novocherkassk electrode plant), and for export, including through ports, is indicated on the group's website. Earlier, Kramatorskteploenergo noted that Kramatorskaya CHPP, owned by the company, will be provided with "its own Russian coal" from August, recalling that E.Connect has supplied coal to the Don coal from 2017. The installed capacity of KramTEC is 150 MW, it is the main source of city heat supply (electricity is sold on the wholesale market). E.Connect noted that it supplied coal to the heating season in 2017/18, since since March 2017 the station "experienced a fuel shortage due to the termination of supplies from the temporarily occupied territories of Donetsk and Lugansk regions." The reserves of anthracite needed for a large part of the CHPP of Ukraine remained in the territory of the self-proclaimed DnP and LNR, while the disgraced Ukrainian businessman Sergey Kurchenko was engaged in the export of coal and metals from there, according to Kommersant sources in the industry.

The interlocutor of Kommersant, close to the government of Ukraine, says that E.Connect is a small company engaged in the supply of energy and gas. "The essence of this business in the supply of coal, they imported 2.8 million tons of coal to Ukraine, of which 2 million tons were imported from the Russian Federation," Kommersant's source said. He believes that "this is the anthracite of Donbass, and Rostov for cover and these supplies will expand." According to the source of Kommersant, E.Connect can also buy coal from Donbasenergo and some thermal power plants. In E.Connect the query "b" was not answered.

Maxim Khudalov from ACRA says that KramTEC needs 300-400 thousand tons of anthracite per year and, if E.Connect is really going to restore production in Rostov mines, "but not to disguise Donbass supplies," the mines will be able to issue such volume, although the resumption of production can be long and expensive.