Ukraine plunges into energy crisis (02/07/93)

Ukraine plunges into energy crisis

KYYIV - Ukraine has fallen into its worst energy crisis since its independence, reported the Associated Press in a Washington Times article of December 22. Today its people suffer from drastically reduced oil deliveries from Russia, a lack of hard currency to buy oil on the world market and corruption.

In Kyyiv, the local militia is alloted the equivalent of 2.6 gallons of gas per every 12-hour shift, which Police Capt. Alexander Strokany said results in police dragging investigative equipment to the scene of a violent crime, and in the case of murder, later puzzling over how to transfer the body to the morgue.

The energy crunch affects most aspects of life. City dwellers are experiencing shortages of many agricultural goods because farmers can't get their products to market. Air Ukraine flights have been drastically curtailed to leave jet fuel for international flights, from which hard currency rolls in. And ambulance drivers can wait up to six hours to receive their meager daily ration of 7.8 gallons. A canister of that gasoline (about 5.4 gallons) costs 8,000 Ukrainian coupons - about $12 American.

Russia, where consumers pay close to $3.50 a gallon, has cut its gasoline deliveries to Ukraine to 20 million barrels, approximately one-seventh of what was exported in the past, said The Washington Times. Since Ukraine announced it was scrapping the ruble, the Russians have demanded oil payments in hard currency.

This year could be worse. Ukraine still lacks hard currency, which puts it in an awkward position when negotiating with Russia. And a planned gas pipeline from Iran or a sea terminal at Odesa are years away, The Washington Times article went on to say.

Most disturbingly, some signals point to Ukraine having itself partially to blame. Prime Minister Leonid Kuchma has ordered an investigation to track what happened to 55.2 billion barrels of oil, part of which were sold overseas for hard currency via export licenses.

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