REUTERS
Ukraine's Cabinet of Ministers has adopted a resolution permitting the liquidation of unprofitable state-owned coal mines without their withdrawal from the list of existing coal mining enterprises, which will reduce the time and costs for such mines’ liquidation, the Ukrainian Energy and Coal Industry Ministry's press service posted on Facebook.
At the government's meeting on April 12, the draft resolution of the Cabinet of Ministers "On Amendments to the Procedure for Using Funds for Restructuring of Coal and Peat-Extracting Industry" was approved, the press service said. At the same time, it noted that the regulation sets up the norm, providing for an opportunity to fund the process of preparing loss-making mines for liquidation, without withdrawing them from the list of existing coal mining enterprises, that is, without creating new legal entities.
The changes will significantly cut the process of the coal mines’ preparation for liquidation and the costs of this procedure. Yet, the mines' assets will be transferred for a liquidation procedure in time, the ministry said.
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As UNIAN reported earlier, many state-owned coal mines have been in a difficult financial situation since the cost of coal mining (for many of them) exceeded its selling price (UAH 1,730 per tonne). The coal mines have large debts for electricity, while programs for the purchase of safety equipment and those regarding payroll are not fully funded.