REUTERS
This measure is expected to help eliminate wage debts owed to coal miners.
Ukraine's Cabinet of Ministers has obliged state-owned coal mines, which have accumulated significant wage debts owed to coal miners, to funnel 70% of proceeds from coal sales into the repayment of the delayed wages.
The relevant decision was made at a government meeting on Wednesday.
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"It is proposed to adopt a protocol decision, which stipulates that by May 1 all state-owned coal mining enterprises must fully switch to servicing by the State Treasury...along with the provision that at least 70% of all proceeds from coal sales should be spent on the repayment the delayed wages if any," Ukrainian Finance Minister Oleksandr Danyliuk said while presenting the draft decision.
According to him, this measure will help eliminate wage debts owed to coal miners.
As UNIAN reported earlier, most state-owned coal mines are in a plight as coal production costs at many of them exceed selling prices. The coal mines have accumulated debts for electricity, their safety programs are underfinanced and wages are not paid in full.
The Cabinet envisaged UAH 1.3 billion in the 2018 national budget to pay wages to coal miners at state-owned coal mining enterprises. In the middle of February 2018, the government additionally allocated UAH 365 million to pay delayed wages.
At a Cabinet meeting on April 4, Ukrainian Prime Minister Volodymyr Groysman demanded the dismissal of the top managers of the coal mines that do not pay wages on time.
According to the Ministry of Energy and Coal, the wage debts owed to coal miners amounted to UAH 167.1 million as of March 1, 2018.