Ukraine unveils plan to revitalize coal sector

The Ukrainian government on Thursday unveiled a plan to revitalize the heavily subsidized coal sector, which envisages the closure of several state-controlled coal mines and job cuts in the industry.

The initiative is aimed at "upgrading Ukraine's coal mining sector and ensuring the country's energy security," the Coal and Energy Ministry said in a statement.

The new measure stipulate that six of 35 Ukraine's state-run coal mines will be closed by the end of 2015, while five others will suspend operations till further notice, the statement said.

The remaining 24 coal mines will be the subject for "optimization," which envisages reduction in the number of administrative employees, it said.

According to the statement, the measures would help to reduce production costs for coal, which is 32 percent higher than its market price, and cut budgetary subsidies to the industry.

Ukraine's old-fashioned energy-intensive coal industry is subsidized by the state budget. Last year, the coal enterprises received around 417 million U.S. dollars from the government.

The measure to reduce budget support for the sector has triggered criticism from the Ukrainian Independent Union of Miners, which launched an indefinite strike.

Earlier in the day, hundreds of miners gathered in central Kiev, calling on the government to take urgent actions against a crisis in the mining industry. Endi