The Cabinet of Ministers approved the incorporation of state mines to Centrenergo

The Cabinet of Ministers of Ukraine approved a plan of measures to create a joint-stock company (JSC) with the participation of state-owned coal mining enterprises and Centrenergo PJSC, according to the relevant order No.1215 dated October 5, 2020, Energoreforma reports.

"... to submit to the Cabinet of Ministers, in accordance with the established procedure, a draft decision on the establishment of a joint-stock company, to the authorized capital of which the corporate rights of Centrenergo PJSC and the property of coal-mining enterprises (mines) are transferred according to the list determined by the commission," such an order to the State Property Fund with a deadline of March 31, 2021, is contained in the document.

According to the approved plan, the SPF and the Ministry of Energy must conduct an inventory and audit of state mines by December 31, 2020, determine the list of the most efficient ones with an annual production capacity of up to 4.2 million tons of commercial products of the "G" brand, whose property can be integrated into the new JSC.

At the same time, DTEK's lease agreement of the Dobropillyavuhillya integral property complex dated December 22, 2010, must be terminated by October 7, 2020.

The signed documents must include a condition for DTEK Dobropillyavuhillya LLC to repay rent arrears and penalties before the date of termination of the contract, as well as compensation for the depreciation fund at the expense of DTEK Dobropillyavuhillya’s movable property required for coal mining, which will be assessed by an independent appraiser.

DTEK Dobropillyavuhillya should also waive the right to receive compensation for all inherent improvements made during the lease term as compensation to the state for early termination of the lease agreement.

The Cabinet of Ministers also instructed the Ministry of Energy and Centrenergo to facilitate the continuous production cycle of Dobropillyavuhillya mines, and the State Property Fund and the Ministry of Energy to ensure the return of Dobropillyavuhillya to the state (until January 25, 2021).

DTEK confirmed that the transfer of Dobropillyavuhillya property will be carried out in accordance with the current legislation.

Recall that the Ministry of Energy presented the conceptual framework for reforming the coal industry.

Earlier it was reported that Centrenergo will consider the possibility of joining the mines after their audit.