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Government approves merger of state mines with Centrenergo
The Cabinet of Ministers has approved the creation of a vertically integrated company on the basis of Centrenergo and state mines. The respective CMU Resolution was published on October 5th and, among other issues, is aimed “to approve the action plan for creation of a joint-stock company with participation of state-owned coal mining enterprises and the public joint-stock company Centrenergo”.
The action plan mentioned in the Resolution was elaborated by an interagency task force created by the CMU at the beginning of September 2020 (as initiated by the State Property Fund). One of the elements of the plan is return of DTEK Dobropilliacoal to state property. Dobropilliacoal mines have been leased by DTEK since 2010. During this period, the company has invested USD 400 mln into development of the mines and the annual volume of coal production at these mines is 3-4 mln tons.
The government estimates that the creation of a vertically integrated company will increase the chances of successful privatization of Centrenergo, which is scheduled for the middle of 2021.
