Moscow. 19 October 2004. RAO "UES of Russia" is seriously concerned about the threat to the reliable operation of the country's Unified Energy System due to thefts of non-ferrous and ferrous metal from energy facilities.

During the period 2002 to H1 2004, almost 28,000 km of transmission line wires were stolen throughout the UES of Russia. The damage caused by the theft of non-ferrous and ferrous materials and articles is in excess of RUB1.5 billion.

This leads to stoppages and instable operation of plants in different sectors of economy. Entire cities are left without power. Over the past two years and a half, nearly seven thousand inhabited localities with a total of over 206,000 residents did not have electricity supply for quite a long time.

The problem has a systemic character: there virtually is no region, which does not suffer from theft of non-ferrous metals. The most seriously affected areas are all regions in the North-West, Center, and South of Russia, as well as in the Volga basin area and the Urals.

The thieves vandalize and steal the back-up transmission lines and lines under repair. Actions of these people lead to a risk of failure in emergency power supply systems, and make it even more difficult to carry out scheduled repairs on the principal transmission lines. At some energy systems, only 3-10% of the back-up transmission lines are in working order This may account for the decline in the number of cases of theft to 3,698 in H1 2004 from 10,718 in 2002, as most back-up transmission lines have been destroyed by the vandals.

Besides, the thieves attack the live transmission lines. As a result, over the past two and a half years, there have been almost 400 accidents as a result of attempted theft, including 235 fatal accidents.

This situation is aggravated by the existence of "underground" non-ferrous scrap dealers. The scope of the problem is so significant that in the past 2.5 years alone, the law enforcement bodies closed down almost 6,500 illegal centers purchasing non-ferrous scrap from thieves.

The criminal business is prospering, as only 20 percent of criminal proceedings brought against thieves of non-ferrous and ferrous metals from energy facilities end in court, with criminals punished. However, even in these cases, there is no full compensation of losses suffered by energy companies.

In order to effectively combat metals theft, it is necessary to ensure strict observance of the applicable laws, methodical work by the law enforcement bodies not only to prevent theft, but also to liquidate the illegal channels through which non-ferrous and ferrous metals are sold. We must fight vigorously against the illegal scrap metal dealing and ensure strict control over the licensed scrap metal businesses.