Medvedev called for more hard to respond to the shadow business in the energy sector in the Caucasus

MOSCOW, March 11. Prime Minister Dmitry Medvedev called on law enforcement agencies to more strictly respond to the shadow business in the energy sector in the North Caucasus Federal district.

“Law enforcement agencies need to continue to do it more efficiently, maybe in some cases more tightly (hard to respond to the shadow business in the energy sector in the Caucasus – approx.TASS), – Medvedev said at a meeting of the government Commission on the socio-economic development of the North-Caucasian Federal district (NCFD).

According to the Prime Minister, in the energy industry in the North Caucasus Federal district the situation is not the easiest, in some areas there has been regression.

“We at the Commission meeting on the development of the North Caucasus have repeatedly discussed the problem of Energy, but we are stubborn people. The situation is not the easiest in this area, and if it is changing, very slowly, and in a number of positions there is not progress, but regress”, – Medvedev said.

He noted that due to difficulties arising in this sphere in the North Caucasus, “the government will meet at least once a year at the meeting of the legal Commission, to talk about this topic”. He also pointed to the fact that not all previously adopted in this field motions in full, and called to understand the causes of this situation.

According to Medvedev, around the energy industry, especially in the Caucasus, concentrated underground economy, it fuels corruption in government.

“Unfortunately around the fuel and energy complex, especially in the Caucasus, still concentrated shadow business, which is associated with unauthorized connections to the power grid, to the gas utilities and tie-ins to pipelines and illegal refineries. It fuels corruption and in the system of fuel and Energy sector, and in government, it exacerbates the crime situation in the region,” Medvedev said.

2015 discovered more than 100 tie-ins in pipelines in the North Caucasus Federal district, suppressed the activity of five mini-refineries, said the Prime Minister.

“According to the interior Ministry, since the beginning of 2015 were revealed nearly a hundred taps into local pipelines for transportation of gas and oil (in the North Caucasus – approx.TASS). A significant part of them – in the Stavropol region, but also in Ingushetia, Dagestan, Kabardino-Balkaria, North Ossetia and Chechnya,” he said. He added that during this time also stopped the activities of five mini-refineries of crude oil, as well as foiled attempts of illegal selection of oil from wells.

Tie-in the pipelines

Tie-in pipelines occur as a result of collusion with authorities and local municipalities, said Medvedev.

“Even more intense need to confront corruption and irresponsible approach. For obvious reasons, these tie-ins do not occur by themselves. It acts in collusion with the authorities and municipalities, as well as the management of the energy companies in the area. Otherwise it can’t be, it’s obvious,” Medvedev said. He added that “we can’t solve acute for the Caucasus problem, and can not take effective decision on payment for debts”.

Consumer debts

The debt of consumers of gas in 2015 in the North Caucasus Federal district grew by more than 7 billion and accounts for nearly half of gas debt to Russia, said the Prime Minister.

“If we talk about natural gas, indebtedness of consumers of the North Caucasus in 2015 rose more than 7 billion and it now accounts for nearly half of all gas debts in the country,” Medvedev said.

He added that in the power sector too, the situation is very complicated, “she looks like”. “The regional distribution companies are not fully calculated with generating companies on the wholesale market. This year the debt amounted to 135 million rubles. It must be added to the total accumulated debt of 32 billion rubles,” – said Medvedev.

Medvedev considers it necessary to involve law enforcement agencies to work with debtors for gas and electricity in the district.

“You also need to work with defaulters, involving law enforcement agencies. Of course, it must deal and the energy company, I mean Gazprom and rosseti, and all who are in this process,” Medvedev said. He stressed that this issue “very much depends on the will and personal responsibility of heads of regions and heads of municipalities”.

The Prime Minister also noted that the payment discipline in the sphere of consumption of gas and electricity “should be one of the performance indicators to the regional administrations”.

Statements By The Ministry Of Energy

The end of the year the capacity of the CPC pipeline will be increased to 67 mln tons per year. This was stated by Deputy energy Minister Alexei Teksler.

“The capacity of the CPC oil pipeline is about 40 million tons per year. Until the end of the current year the throughput of the CPC pipeline will be increased to 67 million tonnes per year,” he said.

The Ministry of energy proposes to instruct the FAS to check the validity of tariffs for electricity in the North Caucasus Federal district, said Teksler.

Non-payments for gas in the North Caucasus Federal district last year increased by 13%, according to the Ministry of energy of the Russian Federation.