Ukrainian Prime Minister Arseniy Yatseniuk has instructed the Energy and Coal Industry Ministry to contract vessels to deliver power-generating coal by ship to reduce dependence on Russia.

"I do not want to give "correct" market-oriented signals, speaking to such a wide audience, but you now have to contract vessels, not to have the repetition of last year's situation – first said: "What a high price!" and then everybody rushed to quickly buy the same coal from South African. There must be rigid diversification ... Knowing who the Russians are – they will cut off coal supplies to us at the most uncomfortable moment for us. You shouldn't even have any doubt – [it will be the same] as they have already blocked gas supplies," Yatseniuk said at an energy ministry board meeting in Kyiv on Tuesday.

Deputy Energy and Coal Industry Minister Ihor Martynenkov said in turn that his ministry had already been working to contract coal from South Africa and has received coal supply proposals from the international company Mercury.

Yatseniuk said that the government was ready to lend UAH 2 billion for the purchase of coal if the money is used transparently.

"As for the UAH 2 billion in a loan you've asked about – we'll give it if you're able to ensure its transparent distribution," he added.

Russian coal costs UAH 1,350-1,400 per tonne, or $63.5-65.8 at the July 7 official forex rate, (including costs of delivery to Ukrainian thermal power plants), while the price of coal from South Africa is $78-82 per tonne, Ukrainian Energy and Coal Industry Minister Volodymyr Demchyshyn said in turn.

(The last paragraph has been added)

KYIV. July 7 (Interfax-Ukraine) – Ukrainian Prime Minister Arseniy Yatseniuk has instructed the Energy and Coal Industry Ministry to contract vessels to deliver power-generating coal by ship to reduce dependence on Russia.

"I do not want to give "correct" market-oriented signals, speaking to such a wide audience, but you now have to contract vessels, not to have the repetition of last year's situation – first said: "What a high price!" and then everybody rushed to quickly buy the same coal from South African. There must be rigid diversification ... Knowing who the Russians are – they will cut off coal supplies to us at the most uncomfortable moment for us. You shouldn't even have any doubt – [it will be the same] as they have already blocked gas supplies," Yatseniuk said at an energy ministry board meeting in Kyiv on Tuesday.

Deputy Energy and Coal Industry Minister Ihor Martynenkov said in turn that his ministry had already been working to contract coal from South Africa and has received coal supply proposals from the international company Mercury.

Yatseniuk said that the government was ready to lend UAH 2 billion for the purchase of coal if the money is used transparently.

"As for the UAH 2 billion in a loan you've asked about – we'll give it if you're able to ensure its transparent distribution," he added.

Russian coal costs UAH 1,350-1,400 per tonne, or $63.5-65.8 at the July 7 official forex rate, (including costs of delivery to Ukrainian thermal power plants), while the price of coal from South Africa is $78-82 per tonne, Ukrainian Energy and Coal Industry Minister Volodymyr Demchyshyn said in turn.