Ukraine’s leading coal trader Dmytro Kovalenko maintains business ties with Russia

Ukraine’s leading coal trader Dmytro Kovalenko maintains business ties with Russia

It’s no secret that Ukraine continued to buy coal from Russia after 2014, despite the bans. While the topic wasn’t widely covered, articles were still written about the key figures profiting from "blood coal."

Among those who developed schemes allowing the purchase and most importantly – the import – of Russian coal into Ukraine, the name Dmytro Kovalenko was mentioned – he invented new and new ways to bypass bans and implemented a mechanism for supplying coal from Russia and the so-called «L/DPR».

It worked approximately as follows. Through the scheme called «interrupted transit», for example, Russian coal was sent to Estonia, Belarus, or Poland, but on the way something «happened» and the carrier «had to» leave the cargo on Ukrainian territory. Or the coal was delivered to conditionally Poland, there it was turned around for some reason (poor quality, the wrong type, etc.), a return was processed on behalf of the «Polish» buyer, and something «happened» already on the way back. There were other schemes, but their essence came down to one thing – how to bypass the ban and import illegal coal into Ukraine.

In the early years of the conflict, this provoked indignation and periodic attempts to fight it, but in the last two or three years, they essentially gave up on the schemes – not only Dmytro Kovalenko was earning in such a way, after all, far too many and far too famous people participated in such schemes. Therefore, the state half-heartedly pretended to fight against trade in blood, and society, except for a handful of «nationalists,» did not react to it at all.

But February 24 became a watershed, when many things that had been ignored until the 23rd became unacceptable. Including the hackneyed expression «trade in blood» which turned from a figurative expression into a literal one. However, this did not stop Dmytro Kovalenko, whose companies continued to supply Russian coal to Ukraine using the same tested over the years schemes. Fortunately, law enforcement did not react to this in any way.

New sanctions and bans imposed on Russia and trading with it at the level of Ukraine and the international community did not stop him either. Of course, this flurry of sanctions created some inconveniences for Kovalenko, but the schemes that were perfected back in 2014 continued to work.

Moreover – Kovalenko even increased volumes, as most competitors either voluntarily or compulsorily stopped buying Russian coal. Kovalenko operates through foreign companies, which he uses to avoid taxes and bypass bans. Since he has been working in this way since 2014, he has accumulated a sufficient number of these companies, which helped to increase the volume of purchases of Russian coal and sell it worldwide after February 24. Just like in the saying «while some have war, others profit from it».

This was the theoretical part. Now, let’s move on to practice. The editorial office has obtained documents that tell how Dmytro Kovalenko’s schemes work. Studying them allows us to understand which companies and in which countries are involved in the purchase of Russian coal, and some names of people involved in these processes also become known. 

Companies Sibcoal and ANTEX INTER TRADE LTD 

About the companies Sibcoal and ANTEX INTERTRADE LTD, through which coal is supplied to Poland, has been written before. But here is new information. This is an invoice dated July 16, 2022, between the Polish Sibcoal and the Belarusian «Exoil Chemical» for the supply of Russian coal from the mine «Belovskaya». 

This is not the only purchase. Below we provide an excerpt from the contract between Sibcoal and ANTEX INTERTRADE LTD (which is also a structure of Kovalenko). These are so-called «internal run-throughs», but the question of where this coal came from and where it went remains open.

Pay attention to the amounts – we are talking about millions of dollars.

Dmytro Kovalenko supplies Russian coal not only to Poland. Among the recipients is the Czech Republic:

Note the date – February 27. On the fourth day of the military operation, Dmytro Kovalenko’s company ANTEX INTERTRADE LTD was carrying Russian coal to the Czech Republic.

However, it is probably unfair to blame the Poles for inaction – judging by everything, they began an investigation, because, according to an extract from the register, Kovalenko changed the name of the Sibcoal structure – since August 18, 2022, it is called Polska Grupa Importowa Premium. 

Company Adelon AG

This company also continued cooperation with Russian and Belarusian companies after February 24. It is registered in Switzerland but belongs to Dmytro Kovalenko.

These are two invoices from July 28, 2022

The amounts are insignificant, but that’s not the main thing. The main thing is that these documents confirm the fact of the work of Dmytro Kovalenko’s Swiss company with Russian coal.

And this is an excerpt from a contract with the company «MelTEK», from which it is clear that during the period of the military operation, the company Adelon AG, like Azurit (more on it below), directly purchases coal from a Russian company. 

Dmytro Kovalenko does not disdain and continues to work and earn together with the Russians. 

Company Plaimp SFP Limited

We did not find facts of this company trading with Russian coal producers, however, Kovalenko uses this structure for the transfer of debts. 

A Plaimp SFP Limited invoice issued to HAMPTON RESOURCES LIMITED – a company that is part of the orbit of the Kazakh company TOO EximArtis also draws attention. 

This information is currently being verified, but it seems that it is safe to assert that Kovalenko will build new schemes through Kazakhstan. 

Joint project of Dmytro Kovalenko and Oleksandr Kurpetko – company Azurit DWC-LLC 

Dmytro Kovalenko – is not the only player in the shadow market for trading Russian coal. Active participation in this process is taken by Oleksandr Kurpetko, who previously worked at «Metinvest Holding» of Akhmetov, where he was responsible for coal purchases. Before joining «Metinvest» Oleksandr Kurpetko was in charge of coal purchases in the company «Donetskstal», and now works in the Ukrainian office of the company Trafigura, where he does all the same – buys coal, but already for DTEK of Rinat Akhmetov and the state-owned «Centrenergo».

The company Azurit DWC-LLC was registered by Kurpetko and Kovalenko to a nominal Romanian. In fact, they are the ones managing this structure. By the way, participants in the coal market know perfectly well who actually owns all the dummy companies and «secret» this is only for law enforcement.

Here is the company’s license, which indicates that the Romanian Chemal Giumali – is the owner and head of the company: 

It is noteworthy that all the founding documents were certified by them in Moscow and the Russian consulate in Dubai.

And here – an addendum to the contract:

And – an invoice:

These documents (they are not the only ones) clearly confirm: that the company Azurit DWC-LLC throughout 2022 worked intensively with the company «MelTEK» and buys coal from it. Even though the designated country of destination is South Korea, there is a big question as to where it went then.

Knowing that Oleksandr Kurpetko has the opportunity to sell this coal to the company Trafigura, it is not excluded that Azurit DWC-LLC further implements this coal precisely in the address of Trafigura. If this is confirmed, then one of the largest world traders will have big problems.

The fact of why it is precisely the company «MelTEK» sells coal to Dmytro Kovalenko is explained by the fact that in «MelTEK» today all sales are managed by an old friend of Kovalenko – Yevhen Potapov, who for a long time worked as financial director of the «Industrial Union of Donbas» in Ukraine, but now actively helps to manage captured enterprises in the uncontrolled territory of the «DPR» and «LPR», such as the Alchevsk MC, Yenakiyevo MC. By the way, the contract between «MelTEK» and Azurit was signed in May when the military operation was in full swing. 

List of counterparties to which Kovalenko’s structures supply their products:

- Terracone, TUZ, CTL Logistics, POLCARGO-MEDYKA Sp. z o.o., Trade Trans Combi, ELEKTO-STAL, Sped Trans Polska Sp., TRANSTECH, Maciej Jaglarz, PKS International CARGO, Mineral water production, Porsche Inter Auto, TOWARZYSTWO GOSPODARCZE FLINT, Fortis, Pocta Polska, UPC Polska Sp. z o.o, ADS SYSTEM. 

Kovalenko employees who directly support the mentioned transactions:

- Oleksandr Shepel,

- Yuriy Feofanov,

- Dmytro Feofanov,

- Kyrylo Kheyko. 

The editorial office has, besides the documents, which we provide in the text of this small investigation, others confirming everything written above about Dmytro Kovalenko’s cooperation with Russia. We are ready to provide them to any law enforcement agency that will finally be interested in what is happening on the coal market of Europe and Ukraine, where Dmytro Kovalenko’s structures supply Russian coal. At least we indulge ourselves with such hope. Because the conflict has lasted for eight years. And its active phase – over seven months. But trade in Russian coal is only gaining momentum. Isn’t it time to put an end to this activity?

P.S. Upon request of the law enforcement agencies, we will provide all the documents that can assist the investigation.