News

17 July 2017, 19:34

Business

Coalmining companies under external management double production since May

LUGANSK, July 17 (Lugansk Media Center) – Coalmining enterprises under external management Rovenkiantratsit, Krasnodonugol and Sverdlovantratsit have doubled their output and gained 20pc rise in sales since May, said the LPR Ministry of Fuel and Energy.

"The joint efforts of external administrations and the ministries have resulted in a doubled coal production since May 2017, when the enterprises were transferred into receivership," said Viktor Tkachenko, head of the Ministry's development department.

"The action (of introducing external management) saved jobs, provided places for young specialists."

Despite Kiev launching the so-called “anti-terrorist operation” (ATO) and Donbass economic blockade, a number of Ukraine-registered companies continued to operate in the Republics without paying taxes to LPR and DPR budgets.

On February 27, DPR and LPR Heads Alexander Zakharchenko and Igor Plotnitskiy warned Kiev that the Republics would put Ukraine-registered companies under receivership and halt coal supplies to Ukraine if the Donbass transport blockade organized by Ukrainian radicals was not lifted by 1 March.

LPR then adopted law on taxation providing that all non-resident companies who fail to register with LPR tax authorities before March 1, are to be put under receivership (external administration).

Under the LPR tax law, external management was introduced on non-resident companies to rearrange their production so that jobs and social guarantees for the employees are preserved.

Lately Ukraine has been coming up with statement saying the blockade was introduced after the Republics had put Ukrainian enterprises under receivership, mendaciously forgetting the fact that the economic blockade of Donbass was introduced by Kiev authorities back in 2014, followed by transport and water blockades.

LuganskMediaCentre — 17 July — Lugansk