Ukraine's President Viktor Yushchenko signed a decree on August 5 for the implementation of the National Security and Defense Council decision of 30 May 2008 "on the state and prospects of coal industry development and urgent measures to increase labor safety in this industry."
According to the decree, Ukrainian coal, machine-building and metallurgical enterprises must sign the agreement for interaction and improvement of existing financial readjustment procedures of unprofitable enterprises and for increased responsibility regarding violation of labor laws.
Moreover, President Yushchenko has charged the Ukrainian Cabinet of Ministers to introduce a base price determination procedure for coal products, taking into consideration its energy and technological value, alternative fuel prices and coal product prices in the external markets.
In addition, the Ukrainian president has instructed the cabinet to supply the draft of bills stipulating the principles of the coal market, including implementation of coal sale via stock exchanges, establishment of rules for the signing of exchange deals, and the introduction of open coal auctions. The bills are to be submitted to the Verkhovna Rada (Supreme Council) by the end of September 2008.
In the opinion of Ukrainian market players, the measures proposed by the Ukrainian president may lead to an increase in the demand for coal in the domestic market and, as a result, a rise in prices.