Poroshenko still managed to pin Donbass on Russia

The economies of the unrecognized republics in eastern Ukraine—or zones T1 and T2, as Russian officials call them—are closely linked to Russia, writes RBC in his investigation - how much money do two unrecognized territories in eastern Ukraine, which before the war provided 16% of Ukrainian GDP, live on?

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Currently, 2–2,5 million people live in the territory of Donbass controlled by the militia, of which about 1 million are pensioners, says an RBC source close to the leadership of the militia.

At the end of March, the heads of the republics simultaneously signed an order to begin regular payment of pensions in rubles at a rate of 1 to 2. From the end of May, both republics also began paying benefits - from the disabled to pregnant women. According to the editors’ calculations, the republics should spend at least 4,6 billion rubles on the payment of pensions and social benefits alone. per month (RUB 55,2 billion per year).

Where does the money come from? Donetsk and Lugansk claim that the money for pensions appeared thanks to tax revenues. But, according to a report by the DPR Ministry of Economic Development, taxes in 2015 will not be enough for pensions.

The money comes from Russia, whose unofficial assistance and participation in the economic life of the DPR and LPR go far beyond the scope of humanitarian operations, RBC writes.

Since December 2014, the topic of Donbass has been within the competence of the Interdepartmental Commission for the provision of humanitarian support to the affected territories of the south-eastern regions of the Donetsk and Lugansk regions of Ukraine (IMC), which was headed by Deputy Minister of Economic Development Sergei Nazarov. The commission, which, according to RBC, includes representatives of all departments at the deputy minister level, deals not only with the organization of humanitarian convoys, but also with almost all issues of economic development of the republics.

In April, the DPR was recognized by South Ossetia. The Republican Bank of the DPR opens accounts with the National Bank of South Ossetia. The National Bank of South Ossetia has a correspondent account with the Bank of Moscow, through which DPR funds can be transferred to Russia and then to other countries, one of the employees of the DPR Ministry of Finance explained the scheme to RBC. All this is also coordinated by Nazarov’s commission.

The relevant departments of the Russian government also control other spheres of economic life in the unrecognized territories. Most of the supplies to the republics and the export of their products outside are carried out according to informal schemes, and the Russian government also participates in their coordination.

Russian entrepreneurs participate in operations to export coal mined from the mines of the LPR and DPR. It is supplied to Russia by Uglesnab LLC from the city of Shakhty. Its leader is Sergei Velmitsky, the brother of Andrei Velmitsky, an ex-deputy of the Legislative Assembly of the Rostov region. In May, the ICC, with the participation of the Ministry of Foreign Affairs and Russian Railways, considered the possibility of transporting coal from zones T1 and T2 to Russian ports in the Azov-Black Sea basin. We are talking about the opening of the interstate railway junctions Uspenskaya - Kvashino (border of the Rostov and Donetsk regions) and Gukovo - Krasnaya Mogila (border of the Rostov and Lugansk regions).

In addition, Russia supplies the LPR and DPR with free gas and electricity. From the beginning of the year until April 21, Gazprom supplied 555 million cubic meters to Donbass. m of gas for $174,2 million. The only source of electricity in the LPR is the 500 kV Pobeda-Shakhty high-voltage line coming from Russia; through this line the republic receives 600 MW daily.

In July alone, the DPR plans to pay pensions and benefits in the amount of 2,65 billion rubles, Zakharchenko’s administration told RBC.

In any case, Moscow will not abandon Novorossiya and will not allow famine there, promises an interlocutor close to the leadership of the Russian government.