In 2008 the Government increased the budget support of coal branch by 33% or by UAH 1.9 billion. Prime Minister Yulia Tymoshenko told an enlarged session of the Coordinating Council on regulating the crisis situation in coal industry with participation of the Cabinet representatives, heads of coal enterprises and trade unions of miners.

 

According to the Head of Government, these means were aimed at, first of all, improving the well-being of miners. “As a matter of fact, the prestige of miner's labor includes the public care for every coal employee,” Yulia Tymoshenko stressed. In particular, the remuneration of labour fund in 2008 as against the last year increased by 15%, average monthly wage in coal industry increased by 39,7% on average. “We have achieved not just a Ukrainian break-through in this direction but we increased an average monthly pension of miners this year by 85% - this is an absolute record,” the PM emphasized.

 

Moreover, the Head of Government said that during January-October 2008 volumes of coal production at public enterprises increased by 3.2 million tons as compared with the previous year and as against 2006 when a drop by 5 million tons was observed. Capital investment to the coal branch also increased by 20%.

 

Tymoshenko is also insisting that salaries be paid to workers at coal enterprises. She noted that the leadership of the respective ministry and enterprises will personally be responsible for increases in unpaid salaries to miners: “If salary arrears increase, we will take on the issue of staff, starting in the ministries and all the way to the mines. In a week make use of all resources and reserves that you can.

 

Tymoshenko gave coal enterprise leaders a week to repay back salaries to workers, which today total 153 million hryvnias.

 

“They have a week to repay and focus all costs. As in 2005, I will personally be involved in this,” she noted. 

 

The Prime Minister announced the creation of a government working group under her leadership that within a week is to repay all salaries. “I am at the head of this group, and we simply have to put an end to this disgraceful situation,” she stressed.

 

“In this difficult time, the one thing that has to be absolutely stable is the people’s well-being,” stressed Tymoshenko, adding that under the given conditions it’s possible to cancel payments for other needs, but not social.

 

In addition, the government developed a complex of measures aimed at supporting the domestic coal industry under conditions of the global economic crisis. As Tymoshenko noted, money from the Stabilization Fund will be used to create a government reserve for energy coal. All state organizations, institutions and enterprises that use domestic coal should purchase it through the state enterprise Coal of Ukraine, so that the government can control all flows. “All production and grades of energy coal and coke should be realized in full volume as a result of the involvement of all state reserves,” Tymoshenko said. 

 

Tymoshenko also announced that the government lowered coke prices for metallurgical enterprises, which have been required to switch from gas to coal. According to Tymoshenko, the government will monitor to ensure that metallurgical enterprises pay for the acquired coal on time. “Ukrzaliznytsia has to transport coal as a top priority so that it doesn’t accumulate in storage facilities and create a fire hazard,” she noted.

 

Moreover, the Government will appeal to the National Bank to extend a term for credit repayment opened to coal enterprises by commercial banks. With this purpose the Prime Minister commissioned the Ministry of Coal Industry to compose a list of coal enterprises which have no means to cancel credits. “We’ll deal with every enterprise personally,” Yulia Tymoshenko stressed.

 

The Prime Minister also commissioned to take measures aimed at attracting non-governmental investments to the coal branch. “If we want to reequip, upgrade and become stronger today then private investors should be attracted to the branch through transparent privatization,” Yulia Tymoshenko said.

 

Information from the Government Website