Medvedev: Fuel and energy complex of the Caucasus suffers from corruption and shady business

Medvedev: Fuel and energy complex of the Caucasus suffers from corruption and shady business

Today Russian Prime Minister Dmitry Medvedev held a meeting of the governmental commission on the socio-economic development of the North Caucasus Federal District, at which participants discussed the current state and the development of the fuel and energy complex of the region.

A shadow business concentrates around the company Caucasus Energy, and this fact replenishes the supply of official corruption, Medvedev said, accusing the authorities and energy companies in the North Caucasus of collusion with criminals for the purpose of illegal extraction of oil from local pipelines.

"Unfortunately, a shadow business associated with unauthorized connection to power grids, gas communication with inserts in pipelines and work of illegal refineries, concentrates around the energy sector, especially in the Caucasus. It replenishes the supply of corruption in the fuel and energy sector, and the authorities, and exacerbates the crime situation in the region," Medvedev urged the law enforcement agencies to respond in a more harshly way to the shadow business in the energy industry in the Caucasus.

"We need to resist corruption and irresponsible approaches in a more intense way, because for obvious reasons these actions don't occur by themselves. These are actions in collusion with the authorities and municipalities, as well as with the management of energy companies in the district," the Prime Minister said, opening the meeting of the governmental commission on the economic and social development of the North Caucasus Federal District.

"It cannot take place in any other way, this is absolutely obvious. They cannot come and insert into the main pipeline, saying it was like that,'' Medvedev said.

"We need to resist corruption and irresponsible approaches in an more intense way because due to obvious reasons these actions don't occur by themselves. These are actions in collusion with the authorities and municipalities, as well as with the management of energy companies in the district," Prime Minister said, opening the meeting of the governmental commission on economic and social development of the North Caucasus Federal District.

"It cannot take place in any other way, this is absolutely obvious. They cannot come and insert into the main pipe, saying it was like that,'' Medvedev said.

It was revealed that there have been more than 100 inserts into pipelines in the North Caucasus Federal District since 2015 and the activity of 5 mini-plants for refining oil was suppressed. Inserts into pipelines take place as a result of collusion with the authorities and local municipalities, Medvedev said.

"I believe that payment discipline has to be one of the indicators of the efficiency of the management of regions, criteria for assessing the effectiveness of management of the regions," Medvedev said, adding that a lot of things depend on the will and personal responsibility of heads of regions and mayors.

The Prime Minister spoke about a new version of the state program of development of the North Caucasus Federal District, which pays more attention to attraction of extra-budgetary resources to the region.

 The meeting was attended by Deputy Prime Minister Aleksander Khloponin, the plenipotentiary representative of the Russian President in North Caucasus Federal District Sergei Melikov, Minister for the North Caucasus Lev Kuznetsov, Interior Minister Vladimir Kolokoltsev, Minister of Finance Anton Siluanov, Minister of Construction, Housing and Communal Services of Mikhail Men, Transport Minister Maxim Sokolov, Healthcare Minister Veronika Skvortsova, Minister of Culture Vladimir Medina, Minister of Sports Vitaly Mutko, Deputy energy Minister Alexey Teksler, as well as heads of regions.

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