Ukrainian parliament extends moratorium on bankruptcies for state-run mines by one year

The Verkhovna Rada has extended the moratorium on the bankruptcy of state-owned mines for another year, until January 1, 2025 after 243 MPs supported the relevant law on Wednesday.

During the revision to the second reading, the lawmakers significantly expanded the bill, supplementing it with a moratorium on the seizure of property and funds of front-line regional energy companies (until January 1, 2026) and the state enterprise Eastern Mining and Processing Plant (until January 1, 2025).

By the same law, the Verkhovna Rada allowed the supply of electricity to critical infrastructure facilities from cogeneration plants (mini-CHP) with a capacity of up to 20 MW without the need to obtain a license.

The coal industry, which used to be an important factor in the development of the economy, is now one of its biggest problem areas. The day before, the Accounting Chamber published data on the pace of its decline: in 1991, 276 mines were operating in Ukraine, and the output was 193 million tons, but in 2014, there were only 33 state mines with an output of 10.9 million tons. In 2021, production decreased to 2.9 million tons. After February 24, 2022, a quarter of the state mines ended up in the territory temporarily occupied by Russia.

State coal enterprises are mostly unprofitable.

The current law on the moratorium on their bankruptcy was adopted in 2017, the last time the ban was extended two years ago.