Victor Yushchenko has sent a letter to Prime Minister Viktor
Yanukovych with a request to introduce faster reforms in Ukraine’s coal industry
and formulate a plan to develop the sector. He also insists that the government
improve mechanisms of the compulsory sale of property, president's press office reported.
The President said recently passed amendments to the law on
solvency or bankruptcy of debtors stipulate that a moratorium to initiate cases
on bankruptcy of coal companies in which the government owns more than 25% of
shares will be extended until January 1, 2010.
“Artificially maintained low profitability of such
companies can have a negative impact on the whole industry. The government
invests much money in the sector every year but it is never enough,” he said.
Yushchenko said low profitability of the companies affects
how they are renewed and equipped. Over 96% of coal mines in Ukraine have not
been reconstructed for twenty years, he said. However, cancellation of the
moratorium can result in closures of coal mines, which will consequently spark
off social tensions and environmental problems in regions where they are
located, he said.
