In Preparation for Further Privatization: The Ministry of Energy Is Preparing Coal Enterprises for Transfer to the State Property Fund
17 August 18:12
The Ministry of Energy is working to prepare state-owned coal mining enterprises for transfer to the State Property Fund and subsequent privatization, and has drafted proposals for the government’s action plan. This was reported by [Komersant], citing “Interfax-Ukraine.”
According to Deputy Minister of Energy Valentina Moskalenko, the ministry has prepared proposals for the government’s action plan and is working to prepare all coal enterprises for transfer to the State Property Fund “with a view to their subsequent privatization and the search for an effective private investor.”
During a meeting of the Verkhovna Rada’s Energy Committee, she also stated that the Ministry of Energy, in conjunction with the Ministry of Finance, had resolved the issue of compensation for wage arrears, unused vacation time, and all other payments required by law to employees of the two mines being liquidated—“Mine No. 9” (Volyn Oblast) and the “Nadiya” Mine (Lviv Oblast).
“The plans for the liquidation of the mines are ready; there is funding to carry out the physical liquidation measures; and all employees who wished to transfer to other enterprises have done so,” noted the deputy head of the Ministry of Energy.
At the same time, Moskalenko emphasized that the operations of the state-owned enterprise “Lvivvuhillia” have always been accompanied by debts, and this issue must be resolved.
“Lvivvuhillia has always had debts—with varying trends—and they haven’t gone anywhere; currently, all debts remain with the state-owned mines. We must do everything possible to restore the health of the state-owned coal mining sector,” Moskalenko stressed.
As a reminder, the state-owned enterprises “Lvivvuhillia,” “Volynvuhillia,” and “Dobropilliavuhillia-Extraction” are to be transferred to the State Property Fund.
Background
The coal industry, which was once one of the key sectors of the Ukrainian economy, has shrunk significantly over the past decades. According to the Accounting Chamber, in 1991 there were 276 mines operating in Ukraine, producing 193 million metric tons of coal. By 2014, only 33 state-owned mines remained, with a total output of 10.9 million metric tons.
In 2021, state-owned enterprises produced only 2.9 million metric tons of coal. After Russia launched its full-scale invasion, about a quarter of the state-owned coal mining enterprises found themselves in temporarily occupied territories.
At the same time, coal reserves at Ukrainian thermal power plants currently stand at 2.4 million metric tons. This is a fairly high figure for the end of winter, given the significant damage Russia has caused to the equipment of coal-fired power units, noted former Energy Minister Olga Buslavets.
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