A court has started the bankruptcy procedure of Chervonohrad enriching factory (Lviv region), the only factory of its kind in western Ukraine, under the suit of the State Fiscal Service of Ukraine, Minister of Energy and Coal Industry of Ukraine Volodymyr Demchyshyn said at a press conference in Kyiv.

He said that a shortage of 30,000 tonnes of coal owned by state enterprise Lvivvuhillia, and 10,000 tonnes of coal owned by state enterprise Volynvuhillia was recorded at the plant, and the company owed UAH 25 million to its staff, however state customers have fully paid the plant.

"There is a fundamental problem with the owners, who have being underfunding the factory for a long time, there is also a problem with its technical condition," the minister said.

Demchyshyn emphasized that the work of Chervonohrad enriching factory is a prerequisite for the normal shipping of products by Lvivvuhillia and Volynvuhillia, therefore the problem must be resolved as soon as possible.

The minister said he supports the early completion of the plant's bankruptcy procedure or its return to state ownership.

At present, the state owns 38% of shares in Chervonohrad enriching factory.