«This is a scam of the century as a minimum». What the «Rotterdam + is»

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Ukrainians have become accustomed to the fact that the government «cheats» us wherever it can. However, there is one scheme that is so blatant in its arrogance that it is difficult to even find words to describe it! It would be better to use tough word. Because Rotterdam + is at least a scam of the century.

This writes Artem Ovdienko on 24tv.ua

What is «Rotterdam +»

“Rotterdam +” — a formula was taken from the ceiling, which forms the price of Ukrainian coal in Ukraine. They take the cost of very high quality black gold, which is sold on the stock exchange of the Netherlands Rotterdam, and add the cost of delivery of the same coal in Ukraine.

Two questions arise at once according to the calculations using the Rotterdam + formula: why the additional cost is the delivery of black gold in Ukraine, if it is coal, and so is Ukrainian, and is it already in Ukraine? And the second question: how can one form the cost of low-calorie domestic coal at the price of high-quality coal on the Netherlands? You know, it’s like take the picture of the price of frog legs in a French restaurant, and then say that the domestic frog found behind the house in the pool should cost the same as those in the Paris restaurant.

Of course, this is complete nonsense and it cannot be right. But at the highest level, it was decided to consider the cost of domestic «black gold» according to this formula. The price of coal in Ukraine is even higher than in Japan, an island-country where there are no coal mines and where coal is transported by sea, unlike Ukraine, where hundreds of mines and nothing even need to be carried and coal is just under our feet.

Now you can ask: why bother writing so much about a coal? Like, well, who uses it — unless somewhere in the village the stove is heated by it. Maybe it is used in industry, but this is already a problem for bourgeois businessmen — that’s what they need.

No way, not just the rural old woman or the businessman industrialist suffers from the high price of coal. The sky-high price of coal beats every one of us. We, Ukrainians, pay with our own money for this deal with the Rotterdam + formula. Do you know why? The expensive coal is our electricity in the outlet. In a country where there are a lot of nuclear and hydroelectric power plants, in a country where the development of wind and solar generation has gained momentum in a country where much of the electricity is produced in thermal power plants, just burning coal in the furnace.

In a developed country, old and inefficient TPPs would have been closed long ago. They would go bankrupt precisely because they could not compete with modern methods of producing electricity. But there is not in Ukraine. We have a monopoly on them and transactions at the state level.

The point is that the majority of thermal power plants are owned by DTEK of Rinat Akhmetov holding. On those obsolete, inefficient and environmentally hazardous thermal power plants to extract electricity to us, Akhmetov burns coal mined in the Akhmetov’s mines, that is, his own. Despite the fact that the price of domestic coal is drawn as if it were Rotterdam. Therefore, the electricity that DTEK of Rinat Akhmetov produces from that coal is very expensive. Everything seems to be logical here — you cannot make cheap electricity with expensive coal. But in fact, «black gold» of its own mining costs a penny. Rinat Akhmetov also extracts it and burns it at his own thermal power plants. Therefore, the cost of electricity is scanty, but you and I buy it at a triple price.

Someone will say what’s wrong with that? Businessman — well done, he was able to build the right chain of natural resource use, turning it into a more expensive artificial resource — electricity. That is all the classics of doing business, what claims? Claims are simple. Rinat Akhmetov could not build the right chain, without having the advantages of a monopoly position and the protection of the state. And this is not correct! It cannot be so that the citizens of a poor European country, having their own natural resources and even an alternative in the form of nuclear power plants, are forced to overpay for the monopolist for electricity. And we overpay to the monopolist so much that our rich Ukrainian only in the last year has become twice as rich! This is all because of the «Rotterdam +».