Ukraine has the 7th largest identified hard coal deposits in the world (almost 4 per cent of the global hard coal reserves), the domestic coal mining industry is in a state of collapse, as a result of which the country is a huge importer of the "black gold".
According to Russia’s Federal State Statistics Service report for 2017, the corporate sector’s net profit was down by 8,5 per cent versus 2016. This is a slightly surprising revelation considering the opposite trend in the economy overall, as the GDP grew by 1,5 per cent last year.
Several projects are being carried out on the construction of new coal mines or re-activation of inactive ones, where coal deposits suitable for mining are still found. According to investors, the tedious concession process is the greatest problem.
Ukraine is entering the winter season with virtually no coal stocks. Instead of becoming independent from supplies of strategic anthracite and the decisions of the Kremlin, the government decided to acquire the raw material from the occupied Donbas region.