After Russia blocked supplies of anthracite coal to DTEK’s power plant in government-controlled Luhansk, the plant switched this week to gas.

After Russia blocked supplies of anthracite coal to DTEK’s power plant in government-controlled Luhansk, the plant switched this week to gas. The coal used to come from DTEK’s mines, 70km away, in the separatist/Russia-controlled zone. Given the lower calorific value of gas, the switch could cost local electricity users an extra $20 million a month, calculates Dragon Capital. Concorde Capital puts the monthly losses at $9-10 million. The solution is to build 30 km of railroad track to replace war damaged tracks. With eastern Ukraine increasingly dependent on coal supplies from Russia, analysts fear that Russia will use this economic lever to political advantage.