18% Price Relief For Coking Coal

The national joint stock company Vuhillia Ukrainy has cut coking coal prices by 18%. The state-owned Vuhillia Ukrainy negotiated with the Ukrkoks association of coke and chemical enterprises over increasing the volume of Ukrainian coal purchase in exchange for a reduction of coking coal prices by 18%. In March, Vuhillia Ukrainy raised prices of coking coal by 20.7%, forcing Ukrainian coke and chemical enterprises to shift to importing raw materials during June-July, which caused an overstock on the domestic market. Earlier, Vuhillia Ukrainy, without success, requested the government restrict Russian coking coal supplies and start investigating the current situation. The Cabinet created the Vuhillia Ukrainy company in October 2004. The statutory capital of the company was formed by transferring to it 100% of the shares companies that had been created on the basis of 113 state-run profitable, and potentially profitable coal enterprises. The government has holdings in 50 coal companies and its 37.25-100% stakes were also transferred to Vuhillia Ukrainy.