Ukraine Faces Coal Shortage After Rail Lines Destroyed

Pelicourt, the private equity firm, and Donbass Energy, which has operations ranging from coal mining to electricity generation, told CNBC that Ukraine could run out of coal supplies because of the destruction of the rail lines by Russian separatists.

According to Robert Bensh, managing partner of Pelicourt, the major mining region of Ukraine—also known as Donbass—could cease getting its coal to electricity producers within the next 40 days. The claims by Pelicourt and Donbass were presented last week to Ukrainian Energy Minister Yuriy Prodan.

CNBC’s attempts to reach Prodan for comment were unsuccessful.

The Kiev Post published an infographic last week illustrating infrastructure problems in eastern Ukraine, including damage to factories, roads and power stations.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza