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. Last Updated: 07/27/2016

Decree Makes Rosugol a Joint-Stock Company

President Boris Yeltsin on Friday issued a decree transforming the Rosugol coal monopoly, which has a controlling stake in most of the pits in Russia, into a joint-stock company, the presidential press service said.

The new Russian Coal Company will receive under a trust agreement shares of the companies previously owned by the state, the press service said. At the same time the decree stipulates that the Russian Coal Company's stocks will remain federal property for the next three years.

Yury Malyshev, head of the Rosugol concern, was named the new president of the Russian Coal Company.

Yeltsin's decree comes in the same week as the government pledged 10.4 trillion rubles ($2.2 billion) in 1996 investment in the coal industry, quelling a two-day strike by miners. The amount was 40 percent more than the budget had allowed, but officials said they would not print money to finance the increase.

The government, with the backing of foreign loans, aims to restructure the country's ailing coal industry by creating competition and attracting investment. Many mines are expected to be closed.

Also under Friday's decree, a joint-stock company Vostochny Kuzbass will be offered state support to develop the giant coal field Yerunakovo in Siberia.