Business news from Ukraine

Chervonograd offers investors projects to develop new businesses as part of closure of coal mines

21 June , 2023  

Chervonograd Lviv region has developed a project of industrial park to attract investors in the development of new businesses that could replace the coal mines located in the community, to be closed as part of the transformation of coal regions, said Mayor Andriy Zalivskyy.

“We have worked out for potential investors a project of industrial park on 80 hectares plus there is 20 hectares of territories of mines themselves. In addition, we have found more than 110 hectares of land that will not be used in agriculture and can go under the SES location,” he said during a discussion on Ukraine’s transition from coal to clean energy at the conference on reconstruction in London (URC2023), scheduled for June 21-22.

Calling on investors to develop new businesses, he stressed that “the city is open to cooperation and investment, ready to give land on favorable terms, since the industrial park allows it.”

He also called the opening of a factory for the production of solar panels and a factory for the production of heat pumps “a small dream”. At the same time, Zalivsky pointed out that the production of related goods for maintenance of wind energy could also be interesting for investors, because, according to him, “it is consumables, which will be very important”. At the same time, he noted that next year two companies have promised to start building two wind power plants in the community.

“Also on the territory of one of the mines we are planning a plant for processing of solid waste, as there is a project, and it is possible to produce biogas and biomethane,” – said the mayor.

He has underlined, that in case of opening of productions the engineering and technical personnel of mines could be used and “we would retain these people”, and in general, the community has a large resource of labor force.

At the same time, he pointed out that the city is already working on training new personnel in educational institutions.

“Last year we started retraining or training young people in new specialties. We replaced one miner’s specialty with a specialty in solar panel repair. A week later we recruited a whole group. This year we also want to open new specialties, connected with alternative sources”, – told the mayor.

In addition, according to him, the city together with the GIZ Ukraine (German Society for International Cooperation), is working on the implementation of the Innovation Hub.

He stressed that people are already aware of the reality of the closure of mines, but they will be easier to move to another production than to leave their homes, so they need to provide jobs and infrastructure for life and recreation.

“Out of 12 mines in the community, there are six left, employing more than 6.5 thousand people. Of these, 1,500 are at war. Many have died. And we have to take care of their families if these enterprises close. Thank you to the Ministry of Energy and GIZ, who chose us and help us implement this project. We are faced with the task of deciding what to replace the mines with,” the mayor of Chervonograd described the situation.

He noted that in the strategy of the city it is called the industrial heart of the Lviv region, because “we are the only ones who choose industry as the basis for the development of its territory.

As it was reported, Chervonohrad was selected to implement a pilot project to transform coal regions of Ukraine as part of the project “Supporting Structural Change in Coal Regions of Ukraine” funded by the German government and implemented by GIZ Ukraine (German Society for International Cooperation, Deutsche Gesellschaft für Internationale Zusammenarbeit).

Earlier this year, the Ministry of Energy announced that Ukraine would create a fund for the transformation of coal regions with the provision of financial contributions to it for the implementation of projects, in particular on the physical closure of coal mines.

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