Ukraine’s

Cabinet of Ministers on May 29 ordered the State Property Fund to prepare an

auction of 38 state-owned coal mines as part of a cost-saving measure in line

with International Monetary Fund requirements. Most of these mines are loss-making

and, moreover, enjoy direct subsidies from the central government to stay

afloat.

Last year, the mines were propped up with nearly $1.8 billion of financial aid to ensure salaries

get paid. Former President Viktor Yanukovych, a native of the coal-mining Donbas

region, paid special attention to the needs of miners, many of whom were his electorate.