WINTER BEGINS IN APRIL

The Cabinet of Ministers of Ukraine issued a regulation on preparation for next winter on the same day that central heating was officially switched off in Ukraine and thus winter officially ended.

One cannot dispute the document’s timeliness and urgency. This winter only the Good Lord saved Ukraine from total energy and economic collapse, already in November testing our government with frost. And since no one after Pavlo Lazarenko wanted to announce that he was the boss, the system suffered more than enough breakdowns.

We all remember the blackouts, connected with frequency failures, which are dangerous for the whole energy supply system. The illegal “borrowing” of Russian natural gas did not exactly enhance Ukraine’s international image. The first deputy head of Ukrainian State Gas and Oil Industry Ihor Bakay, recently appointed CEO of the Ukrnaftohaz (Ukrainian Oil & Gas) National Stock Company, said this happened only because of poor management. As a result, we have a huge debt to Russia, Ukrhazprom to the state and, of course, huge consumer debt as high as Hr 8.5 billion.

The government attempted to fix all this along with the last winter’s other failures with the new regulation, which, however, contains many generalities reminiscent of election slogans. Just think of the phrase: “to secure the purchase of domestic coal production along with full and immediate payment for it.” It is difficult to say how commercial structures will react to this advice, for they find it more economical to buy Polish coal. However the President, who promised profitable Ukrainian orders to the miners of Kemerovo in Russia, will have to bow to the voice of reason.

The request to the National Bank to assist the state reserve in receiving loans totaling Hr 400 million sounds more like a tune in a minor key. The loans will be used to purchase necessary loads of coal and crude oil. Of course, no one will ever bother to pay them back. This is why they have had to restructure energy companies’ debts.

However, the Cabinet also shows its teeth in the regulation. The Ministries of Industrial Policy, Economics, and some others are to compile a list of enterprises, whose work will be suspended for the whole cold part of the year.

Another draconian measure was a mandated 10% reduction in natural gas consumption from its 1997 level. The catch is that this does not really threaten anybody. The Ukrainian gas supply system is ill thought-out, so anybody can consume gas free of charge and without control. However, the situation is different with residential consumers. Their gas will be cut off immediately.

It seems to me that it will be the people, who will have to deal with the major problems this winter. They are already paying for new power units at the Khmelnytsky and Rivne nuclear power stations. And the regulation talks about new electricity rates, “in accordance with the law.”

Meanwhile, a cold wind is blowing over people in the concrete buildings where the heat has been cut off.