Russian Prime Minister Medvedev orders confiscation of Chechen assets to service debt
Russian Prime Minister Dmitry Medvedev gave a radical order on Monday to deal with the North Caucasian republics’ gas and electricity debt problem.
At the conclusion of the session of the government commission for the social and economic development of the North Caucasian Federal District, Medvedev gave the order to confiscate energy assets in Chechnya, Dagestan, Ingushetia, Kabardino-Balkaria and North Ossetia in favour of state corporations.
Companies and networks are to be transferred to PJSC Gazprom and PJSC Rosseti as payment for the accumulated “debt for consumed energy resources and communal services”, as follows from the list of Medvedev’s orders published on the Cabinet of Ministers’ website.
The work of officials in Northern Caucasus is recognized as being “ineffective”, and new debt collection measures are to be personally overseen by the leaders of the republics and the heads of Gazprom and Rosseti, Alexey Miller and Pavel Livinsky.
They are advised to “ensure the repayment of the overdue debt to the subsidiaries and affiliates of Rosseti and Gazprom, even at the expense of transferring the ownership of energy assets with values comparable to the debt amount,” the government release states.
Furthermore, they must ensure “a 100% level of payment by budget organizations and communal enterprises for the consumption of energy resources” and “create an inventory of electrical and gas distribution networks”. When unowned networks are identified, they are to take ownership of them.
According to government data, last year in the North Caucasus, less than 85% of consumed gas was paid for, and the outstanding debt grew by 13 billion rubles.
In the middle of 2017, Gazprom assessed the Caucasian republics’ debt at 55 billion rubles. At that time, the company stopped regularly disclosing the debt amount.
In February last year, Chechen leader Ramzan Kadyrov accused Gazprom and Rosseti themselves of failing to pay.
“We all pay for lighting, for gas, but the money doesn’t get through. I ask representatives of the ministries of the Russian Federation and the companies, if you are unable to deliver normal operation, you can keep your lighting and gas,” Kadyrov said.
He also threatened to litigate in connection with the low quality of services rendered.