MOSCOW, April 21 (UPI) -- The energy sector in the North Caucasus region is losing money because of a lack of policy and looming debt to Russia, Chechen leaders said Wednesday.
Alexander Khloponin, the Chechen envoy to Russian President Dmitry Medvedev, said small business, state-run enterprises and the public are the primary energy consumers in the North Caucasus. These smaller consumers, he said, make up about 87 percent of the entire payment of the region, Russian business daily Kommersant reports.
He added that payment defaults and outdated infrastructure was dragging on the regional energy sector.
"The absence of adequate policy in the energy sector makes energy in the entire North Caucasus region unprofitable," he added.
Chechen President Ramzan Kadyrov called on Moscow to forgive its outstanding energy debts. Economic issues tied to the energy sector aren't surprising, he said, as the region is "recovering from the two devastating military campaigns."
Chechen rebels in the region have targeted several natural gas installations in recent months. More than 200,000 people in the North Caucasus republic of Dagestan were left without gas supplies following the bombing of a section of the Mozkok-Kazimagomed pipeline in January.
The disruptions come amid a flurry of militant activity in south Russia.
