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Ukraine : UKRAINE to auction coal mines and reduce subsidies.

The Ukrainian cabinet on 29 May, ordered the State Property Fund to prepare 38 state-owned coal mines to be auctioned off.

This decision comes as one of the cost-saving measures necessary for the International Monetary Fund in return for loans.

Major mines are presently losing money and are operating through direct subsidies. It even keeps miners at work, when employment is already high.

The former President Viktor Yanukovych, who is a native of the Donbass area, ensured that his constituents gets subsidies.

In order to pay salaries, financial aid to the tune of around $1.8 billion was provided.

First Deputy Energy Minister Yuriy Zyukov stated that government austerity measures features reduction in subsidies to coal mines of almost $230 million as well as auctioning off 30 per cent of functioning mines.

Already, many mines have closed operations with only 120 functioning and 70 temporarily or permanently shut down.

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Publication:Mena Report
Date:Jun 5, 2014
Words:161
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