Carbunele ucrainian: o industrie in criza

8/16/2019 Carbunele ucrainian: o industrie in criza

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Cărbunele ucrainian:O industrie în

criză

Jitariu Ioan-SebastianPT11


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Cărbunele n Ucraina este singura resursă de energie pe care o va oferi araț țîn cantită i suficiente. Cre terea rentabilită ii acestei industrii contribuie laț ș ț poten ialul economic al Ucrainei.ț

Industria cărbunelui in Ucraina este printre cele mai importante dacă nucea mai importantaaceasta fiind pe locul ! in topul tărilor cu cele mai mari

re"erve de cărbuni din lume cu #$ miliarde de tone i pe locul # in lume cușre"ervele de antracit %& miliarde. Cele mai multe dintre re"ervele de cărbune alearii sunt situate in ba"inul 'onbas din estul Ucrainei ce include regiunileț

'onet( i )u*ans(.șUcraina are i o po"itie geografica favorabilă între +uropa i ,sia laș ș

intersec ia unor rute interna ionale importante beneficiind i de accesul la uneleț ț ș proturi fluviale maritime i feroviare.ș

n ciuda resurselor de cărbune maore in Ucraina s-a produs un declin ale/ploatarii odată cu căderea Uniunii 0epublicilor Sovietice Socialiste declinul

accentundu-se la finalul anului 231$ odată cu începutul unui 40a"boi rece5 între0usia i Ucraina. 6ulte dintre minele din est au fost înc*ise sau c*iar distruse deșseparati tii ru i in cteva luniiar altele fiind privati"ate. ,cest lucru afectndș șeconomic Ucraina. , adar tensiunile politice au făcut industria carbunelui sașsufere pe tot teritoriul arii. Pre ul cărbunelui a crescut foarte mult acest factorț ținducnd ara într-o cri"ă gravă.ț

Un al factor negativ al e/ploatarii cărbunelui in Ucraina este condi ia dețminerit. n medie minele active din Ucraina au o adncime de !33m acest lucruîngreundand munca minerului provocnd foarte multe accidente. 7umarulacestora este printre cele mai ridicate din lume. Un e/emplu ar fi in 231$ cand o

e/plo"ie a ucis ! mineri la peste !33 m adancime.Prin urmare Ucraina este o tară foarte bogată in resursele de carbune dar

suferind de o deficien ă acută în domeniul e/ploatarii i comerciali"ării dinț ș pricina divi"ării acestei industrii între autorita ile de la 8iev i separati tii pro-ț ș șru i.ș

Pană acum ca iva ani Ucraina a fost al treilea cel mai mare producator dețcărbune din +uropa. Probabil nu se va mai intoarce niciodată la acel nivel de produc ie.ț

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Bibliografie

U(raine and coal disponibil la9*ttp9::;;;.source;atc*.org:inde/.p*p:U(raine:;ar-is-not-t*e-onl=-grave-problem-for-eastern-u(raine-coal-industr=:

+conomia Ucrainei pe margina prapastiei disponibil la9

*ttp9::europolitics.ro:stiri:economia-ucrainei-pe-marginea-prapastiei-minele-de-carbune-din-donbass-sunt-inundate-inflatia-este-de-$%-iar-fmi-ul-bate-la-usa:

Institutul national de statistica al Ucrainei disponibil la9

*ttp9::;;;.u(rstat.gov.ua:

Pretul carbunelui s-a triplat disponibil la9

*ttp9::;;;."iarulnational.md:pretul-la-carbune-s-a-triplat-in-ucraina-sunt-patru-sc*eme-de-contrabanda:

U(raine coal consumtion b= =ear disponibil la9

*ttp9::;;;.inde/mundi.com:energ=.asp/@countr=AuaBproductAcoalBgrap*Aconsumption

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http://www.sourcewatch.org/index.php/Ukraine_and_coalhttp://www.worldcoal.com/special-reports/10092015/Ukrainian-coal-an-industry-in-crisis-2383B/http://www.worldcoal.com/special-reports/10092015/Ukrainian-coal-an-industry-in-crisis-2383B/https://euracoal.eu/info/country-profiles/ukraine/http://sadovayagroup.com/operations/ukrainian-coal-market/http://www.indexmundi.com/energy.aspx?country=ua&product=coal&graph=exportshttp://www.indexmundi.com/energy.aspx?country=ua&product=coal&graph=exportshttp://voxukraine.org/2015/01/09/war-is-not-the-only-grave-problem-for-eastern-ukraine-coal-industry/http://voxukraine.org/2015/01/09/war-is-not-the-only-grave-problem-for-eastern-ukraine-coal-industry/http://europolitics.ro/stiri/economia-ucrainei-pe-marginea-prapastiei-minele-de-carbune-din-donbass-sunt-inundate-inflatia-este-de-45-iar-fmi-ul-bate-la-usa/http://europolitics.ro/stiri/economia-ucrainei-pe-marginea-prapastiei-minele-de-carbune-din-donbass-sunt-inundate-inflatia-este-de-45-iar-fmi-ul-bate-la-usa/http://www.ukrstat.gov.ua/http://www.ziarulnational.md/pretul-la-carbune-s-a-triplat-in-ucraina-sunt-patru-scheme-de-contrabanda/http://www.ziarulnational.md/pretul-la-carbune-s-a-triplat-in-ucraina-sunt-patru-scheme-de-contrabanda/http://www.ziarulnational.md/pretul-la-carbune-s-a-triplat-in-ucraina-sunt-patru-scheme-de-contrabanda/http://www.indexmundi.com/energy.aspx?country=ua&product=coal&graph=consumptionhttp://www.indexmundi.com/energy.aspx?country=ua&product=coal&graph=consumptionhttp://www.worldcoal.com/special-reports/10092015/Ukrainian-coal-an-industry-in-crisis-2383B/http://www.worldcoal.com/special-reports/10092015/Ukrainian-coal-an-industry-in-crisis-2383B/https://euracoal.eu/info/country-profiles/ukraine/http://sadovayagroup.com/operations/ukrainian-coal-market/http://www.indexmundi.com/energy.aspx?country=ua&product=coal&graph=exportshttp://www.indexmundi.com/energy.aspx?country=ua&product=coal&graph=exportshttp://voxukraine.org/2015/01/09/war-is-not-the-only-grave-problem-for-eastern-ukraine-coal-industry/http://voxukraine.org/2015/01/09/war-is-not-the-only-grave-problem-for-eastern-ukraine-coal-industry/http://europolitics.ro/stiri/economia-ucrainei-pe-marginea-prapastiei-minele-de-carbune-din-donbass-sunt-inundate-inflatia-este-de-45-iar-fmi-ul-bate-la-usa/http://europolitics.ro/stiri/economia-ucrainei-pe-marginea-prapastiei-minele-de-carbune-din-donbass-sunt-inundate-inflatia-este-de-45-iar-fmi-ul-bate-la-usa/http://www.ukrstat.gov.ua/http://www.ziarulnational.md/pretul-la-carbune-s-a-triplat-in-ucraina-sunt-patru-scheme-de-contrabanda/http://www.ziarulnational.md/pretul-la-carbune-s-a-triplat-in-ucraina-sunt-patru-scheme-de-contrabanda/http://www.indexmundi.com/energy.aspx?country=ua&product=coal&graph=consumptionhttp://www.indexmundi.com/energy.aspx?country=ua&product=coal&graph=consumptionhttp://www.sourcewatch.org/index.php/Ukraine_and_coal


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U(raines coal reserves are located in t*e 'onets ?asin Deasternmost part

of t*e countr=E and in t*e nort*;estern area bet;een t*e cities

of )viv and Folod=m=r-Fol=ns(=i. In t*e earl= 21st centur= countr=s

economicall= e/tractable coal reserves ;ere estimated at more t*an 13 billion

tonnes. ,ccording to t*e U(rainian mining trade union coal constitutes >%G ofU(raines domestic energ= resources.

T*ere are also abundant deposits of lignite in central U(raine but t*e

mining of lignite stalled in t*e 1>>3s.

In 2312 coal production in U(raine amounted to &%.>$H million tonnes up

$.&G from 2311. In 233# U(raine produced !>.# million tonnes. U(raine in 231#

sa; a 2.HG decline in coal production from 2312 to .H>& million tonnes.

Coal mining is one of t*e biggest industries in +astern U(raine. T*e countr=s coalindustr= emplo=s about %33333 people. 6ore t*an >3 percent of U(raines coal

production comes from t*e 'onets ?asin D'onbassE region.

In Jul= 231$ several mines ;ere closed in +astern U(raine because of

fig*ting during t*e 231$ pro-0ussian conflict in U(raine.KHL ?ecause of t*is Mar in

'onbass Daccording to t*e U(rainian +nerg= and Coal Industr= 6inistr=E ra; coal

production in U(raine dropped b= 22.$G from 231# to H$.>!H million tonnes. ,s

a result U(raine begun importing po;er-generating coal from Sout*

,frica and 0ussia. )ac( of coal for U(raines coal-fired po;er stations and a s*utdo;n of one of t*e si/ reactors of t*eNapori"*ia 7uclear Po;er Plant lead to

rolling blac(outs t*roug*out t*e countr= from earl= till late 'ecember 231$.

U(rainian coal miners *ave to ris( t*eir lives ever= time t*e= go to ;or(

since t*eir ob is e/tremel= dangerous. T*e coal mines of 'onbas are one of t*e

most *a"ardous in t*e ;orld due to enormous ;or(ing dept*s Ddo;n from #33 to

1233 mE as a result of natural depletion as ;ell as due to *ig* levels of met*ane

e/plosion coal dust e/plosion and roc( burst dangers. ,s t*e +conomic

0evie; points out Since 1>>1 up to #33 KminersL *ave died at ;or( ever==ear.

On 1! 'ecember 231# an accident at t*e Sviato-Po(rovs(a 6ine

Din 'onets( OblastE (illed four miners.

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https://en.wikipedia.org/wiki/Donets_Basinhttps://en.wikipedia.org/wiki/Lvivhttps://en.wikipedia.org/wiki/Volodymyr-Volynskyihttps://en.wikipedia.org/wiki/Trade_unionhttps://en.wikipedia.org/wiki/Lignitehttps://en.wikipedia.org/wiki/Eastern_Ukrainehttps://en.wikipedia.org/wiki/Donets_Basinhttps://en.wikipedia.org/wiki/2014_pro-Russian_conflict_in_Ukrainehttps://en.wikipedia.org/wiki/Coal_in_Ukraine#cite_note-6https://en.wikipedia.org/wiki/War_in_Donbasshttps://en.wikipedia.org/wiki/War_in_Donbasshttps://en.wikipedia.org/wiki/Ukrainian_Energy_and_Coal_Industry_Ministryhttps://en.wikipedia.org/wiki/South_Africahttps://en.wikipedia.org/wiki/South_Africahttps://en.wikipedia.org/wiki/Russiahttps://en.wikipedia.org/wiki/Zaporizhia_Nuclear_Power_Planthttps://en.wikipedia.org/wiki/Donbashttps://en.wikipedia.org/wiki/Mining_accidenthttps://en.wikipedia.org/wiki/Methanehttps://en.wikipedia.org/wiki/Methanehttps://en.wikipedia.org/wiki/Coal_dusthttps://en.wikipedia.org/wiki/Rock_bursthttps://en.wikipedia.org/wiki/Donetsk_Oblasthttps://en.wikipedia.org/wiki/Donets_Basinhttps://en.wikipedia.org/wiki/Lvivhttps://en.wikipedia.org/wiki/Volodymyr-Volynskyihttps://en.wikipedia.org/wiki/Trade_unionhttps://en.wikipedia.org/wiki/Lignitehttps://en.wikipedia.org/wiki/Eastern_Ukrainehttps://en.wikipedia.org/wiki/Donets_Basinhttps://en.wikipedia.org/wiki/2014_pro-Russian_conflict_in_Ukrainehttps://en.wikipedia.org/wiki/Coal_in_Ukraine#cite_note-6https://en.wikipedia.org/wiki/War_in_Donbasshttps://en.wikipedia.org/wiki/War_in_Donbasshttps://en.wikipedia.org/wiki/Ukrainian_Energy_and_Coal_Industry_Ministryhttps://en.wikipedia.org/wiki/South_Africahttps://en.wikipedia.org/wiki/South_Africahttps://en.wikipedia.org/wiki/Russiahttps://en.wikipedia.org/wiki/Zaporizhia_Nuclear_Power_Planthttps://en.wikipedia.org/wiki/Donbashttps://en.wikipedia.org/wiki/Mining_accidenthttps://en.wikipedia.org/wiki/Methanehttps://en.wikipedia.org/wiki/Methanehttps://en.wikipedia.org/wiki/Coal_dusthttps://en.wikipedia.org/wiki/Rock_bursthttps://en.wikipedia.org/wiki/Donetsk_Oblast


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On 1! ebruar= 231$ a firedamp e/plosion in t*e Pivnic*na Saltiv(a mine

Din 'onets( OblastE (illed seven ;or(ers &1% meters underground.

U(rainian mines are sometimes run b= mafia-li(e organi"ations. Often t*ese

organi"ations derive large incomes from t*e mines t*at belong to t*e government.,s a result underfinancing causes man= emplo=ees to *ave to ;ait to receive

t*eir mont*l= salar= for ;ee(s or even mont*s. ,dditionall= a lac( of financing

influences t*e condition of man= coal mines. Old mines dont receive t*e

necessar= financial aid t*erefore t*e= are not being renovated or remodeled

annuall=. ,ll t*ese problems toget*er ;it* ot*er c*allenges *ave resulted in

graduall= declining production capacit= and a loss of global mar(et s*are.

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https://en.wikipedia.org/wiki/Donetsk_Oblasthttps://en.wikipedia.org/wiki/Mafiahttps://en.wikipedia.org/wiki/Market_sharehttps://en.wikipedia.org/wiki/Donetsk_Oblasthttps://en.wikipedia.org/wiki/Mafiahttps://en.wikipedia.org/wiki/Market_share


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Figure 1 Russian poster from 1921 - onets Basin is t!e !eart of Russia"

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Figure 2In the Donets Basin there are many extremely dangerous illegalmines.

T*e U(raine government *as estimated t*e countr=s total coal reserves at

11!.% billion tons ;it* e/plored reserves estimated at %H.! billion tons. T*e

Morld +nerg= Council DM+CE estimates t*e total coal reserves at %2 billion tons

and e/plored reserves at #$.2 billion tons. +uracoal states t*at U(raines total coal

resources are estimated at %$ billion tonnes ;it* economicall= mineable coal

reserves estimated at a furt*er #$ billion tonnes of ;*ic* H.1 billion tonnes are

located in active mines.

M*ile t*e coal sector is currentl= dominated b= state-o;ned mining companies

t*e USQS reports t*at t*e countr=s coal mines ;ere subect to c*ronic financial

distress and onl= limited efforts *ad been made to improve t*eir performance.

,ppro/imatel= >3G of U(raines *ard coal comes from t*e 'onets coal basin

;*ere in 233H t*ere ;ere appro/imatel= 22% operating mines ;*ic* produced

1#3 million tonnes. T*e remainder of t*e *ard coal came from t*e )viv-Fol=ns(i=

?asin in Mestern U(raine ;*ere 1& mines produce appro/imatel= H million

tonnes a =ear.

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,ppro/imatel= ! million tonnes of bro;n coal is mined from t*e 'nipr ?asin in

CentralU(raine.

M*ile government o;ned operations are declining plans *ave been

announced to faciliate a rapid e/pansion of ne; mines. T*e USQS reports t*at in

233% U(raines Coal Industr= 6inistr= selected seven of t*e most promising

*ard coal deposits ;it* combined reserves in e/cess of 1 Qt for development. T*e

seven ne; mines if developed ;ould *ave a combined capacit= to produce 1!.!

6t:=r of coal. U(raines energ= strateg= for t*e period to 23#3 ;*ic* ;as

approved b= t*e Qovernment in 233H called for increasing coal output to 1#3.#

6t.

T*e USQS also reports t*at t*e Coal Industr= 6inistr= is promoting t*e rapid

e/pansion of t*e bro;n coal mining sector calling for private sector bids in 233%

for proposals to develop t;o deposits R t*e ,le(sandriis(o=e deposit ;*ic* *as

bro;n coal reserves reported to be $&% 6t of ;*ic* H# 6t ;ere considered

suitable for open pit development and t*e Fer(*nedniprovs(o=e deposit ;*ic*

*as reported reserves of 2#H 6t for ;*ic* t*e e/plored sections ;ere considered

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suitable for open pit development. T*e 6inistr= calculated t*at t*ese deposits

*ave t*e potential to produce bet;een % and H 6t:=r of bro;n coal b= open pit

mining. 6ines at t*e deposits ;ere proected to come onstream in 2 =ears once

development begins.

President Fi(tor anu(ov=c* said U(raine *as about 12 trillion cubic meters

of coalbed met*ane ;*ic* U(raine is loo(ing for investment to mine. U(raines

coal output is e/pected to rise to around &3 million mt in 2311 from !%.1! million

mt in 2313.

+uracoal lists 1$> mines operating in U(raine including 123 state-o;ned and 2>

private mines.

T*e US +nerg= Information ,dministration reports t*at U(raines po;er sector

is t*e t;elft*-largest in t*e ;orld in terms of installed capacit= ;it* %$giga;atts DQME. o;ever since gaining independence bot* generation and

consumption dropped dramaticall= resulting in appro/imatel= %3G over-capacit=.

M*ile po;er e/ports *ave increased and ne; nuclear po;er stations been

commissioned substantial investment is reuired in maintaining and upgrading

t*e transmission and distribution s=stem.

T*e Starobes*ev po;er station is a coal-fired po;er station in eastern

U(raine. T*e +nvironmental 'efense und reports t*at financing from a

mulilateral development ban( for t*e suppl= and installation of a 213 6Mfluidised bed boiler ;it* ancillar= euipment at Unit $ of t*e Starobes*evo Po;er

Station.

In June 2312 t*e U(raine announced in a revised energ= polic= draft t*at it ;is*es

to build and upgrade 1$QM Dout of 23QME of coal plants.

In 2312 t*e e/port of coal and co(e t*roug* U(rainian ports ;as $ million

tonnes. T*e largest volumes of coal ;as e/ported t*roug* t*e Port of

6ariupol D1.H million tonnesE Port of ?erd=ans( D1.1% million tonnesE and Port

of 7i(olaev D1.3& million tonnesE. Coal imported into U(raine in 2312 ;as 1.%

million tonnes9 !12!33 t*roug* t*e Port of Il=ic*evs( and !&H>33 t*roug*

t*e Port of u"*n=.

T*e U(rainian financial and industrial *olding compan= S=stem Capital

6anagements energ= business 'onbass uel-+nerg= Comple/ D'T+8E

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http://www.sourcewatch.org/index.php/Coalbed_methanehttp://www.sourcewatch.org/index.php/Starobeshev_power_stationhttp://www.sourcewatch.org/index.php/Port_of_Mariupolhttp://www.sourcewatch.org/index.php/Port_of_Mariupolhttp://www.sourcewatch.org/index.php?title=Port_of_Berdyansk&action=edit&redlink=1http://www.sourcewatch.org/index.php/Port_of_Nikolaevhttp://www.sourcewatch.org/index.php/Port_of_Nikolaevhttp://www.sourcewatch.org/index.php?title=Port_of_Ilyichevsk&action=edit&redlink=1http://www.sourcewatch.org/index.php/Port_of_Yuzhnyhttp://www.sourcewatch.org/index.php/System_Capital_Managementhttp://www.sourcewatch.org/index.php/System_Capital_Managementhttp://www.sourcewatch.org/index.php/Coalbed_methanehttp://www.sourcewatch.org/index.php/Starobeshev_power_stationhttp://www.sourcewatch.org/index.php/Port_of_Mariupolhttp://www.sourcewatch.org/index.php/Port_of_Mariupolhttp://www.sourcewatch.org/index.php?title=Port_of_Berdyansk&action=edit&redlink=1http://www.sourcewatch.org/index.php/Port_of_Nikolaevhttp://www.sourcewatch.org/index.php/Port_of_Nikolaevhttp://www.sourcewatch.org/index.php?title=Port_of_Ilyichevsk&action=edit&redlink=1http://www.sourcewatch.org/index.php/Port_of_Yuzhnyhttp://www.sourcewatch.org/index.php/System_Capital_Managementhttp://www.sourcewatch.org/index.php/System_Capital_Management


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D0ussian9 TVWXYZ[V-\[]^_]`Y]Y VWX] V[haE generates 2%.$G of

all po;er produced b= U(raines t*ermal po;er plants. 'T+8 is t*e first private

verticall= integrated po;er generating compan= of U(raine. 'T+8 ;as formed in

2332 and is an association of 1% various enterprises verticall= integrating t*e

mining and refining of coal to t*e suppl=ing of electricit=. T*e main companiesare Fosto(energo Po;er Qeneration Compan= ServiceInvest +nerg= Compan=

and t*e coal mine 8omsomolets 'onbassa.

,ccording to its ;ebsite t*e (e= strategic goal of 'T+8 is to become t*e

largest compan= in t*e po;er energ= field in U(raine. 'T+8 companies account

for one fift* of t*e countr=s output of coal producing 1!.%>% million tons of coal

in 233&.

'T+8 *as t*ree t*ermal po;er plants9 Nu=evs(a=a 8ura(*ovs(a=a and

)ugans(a=a run b= Fosto(energo. In 233& t*e electric po;er transmission volumeconstituted 1#.%1 million 6M.K1HL

SC6s largest compan= is 6etinvest an international verticall= integrated

mining and steel group of companies comprising 2# industrial companies

involved in t*e mining and steel industr= of U(raine and t*e Common;ealt* of

Independent States. In 6a= 233> SC6 oldings:6etinvest purc*ased t*e Mest

Firginia-based United Coal Compan= for an estimated 1 billion.

In 233! t*e 'ivisions mines produced over %.!$ million tons of coal and,vde=ev(a Co(e and C*emical Plant ;*ic* operates as a part of t*e 'ivision

produced more t*an # million tons of blast furnace co(e.

Ukrainian coal: an industry in crisis

T*e in-dept* anal=sis of t*e U(rainian coal mining industr= ;as made in previous articles9 j?attle ?egins Morld Coal October 2313 and jFisitors from t*e+ast Morld Coal 7ovember 2312. ere is t*e brief summar= of *o; it ;as seent*en.

,n updated energ= strateg= to 23#3 assumed t*e nation ;ould produce11% million tpa of coal in 23#3k it ;ould be self-sufficient in metallurgical coalk

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http://www.sourcewatch.org/index.php/Ukraine_and_coal#cite_note-dtk-16http://www.sourcewatch.org/index.php/Ukraine_and_coal#cite_note-dtk-16http://www.sourcewatch.org/index.php/SCMhttp://www.sourcewatch.org/index.php/United_Coal_Companyhttp://www.sourcewatch.org/index.php/Ukraine_and_coal#cite_note-dtk-16http://www.sourcewatch.org/index.php/SCMhttp://www.sourcewatch.org/index.php/United_Coal_Company


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and it ;ould continuousl= replace 0ussian natural gas ;it* t*ermal coal as t*emaor fuel for U(raines t*ermal po;er plants.

0eac*ing 11% million tpa of production assumed at least 1#% million t of annualcapacit= b= 23#3. In 231# U(raines $32 coal mines *ad a total capacit= of

13# million tpa. It ;as t*erefore a tas( to some*o; launc* ne; capacit= for atleast #2 million t bet;een 231$ and 23#3. Suc* a tas( reuired at least US#.2 #.% billion of investments potentiall= from C*ina.

rom 233$ U(raine ;as a net importer of metallurgical coal ;it* 0ussiansuppliers filling t*e annual gap of H 13 million tpa. T*e strateg= of coal e/portgro;t* ;as available onl= ;it* metallurgical coal but it reuired *ugeinvestments in e/pansion of t*e capacit= at t*e U(rainian ?lac( Sea ports.

T*e rise in domestic coal demand loo(ed at t*e time to be a more reliable

source of t*e gro;t* in t*e industr=. 'ue to t*e political instabilit= in 2333 2313 U(raine started t*e transition from gas-fired po;er plants to coal onl= in2311 planning to reduce gas consumption b= #3 #2 billion m#:= b= 231& 231> Dt*at mig*t boost demand for t*ermal coal b= 1& million tpaE. T*is meantt*at it could reduce gas consumption b= about H billion m#:= b= $1# Din ot*er;ords to increase t*e demand in coal b= # million tpaE.

Qenerall= spea(ing t*e C*inese government and companies ;ere perceived to become t*e maor future investors in t*e U(rainian coal mining industr=including seaport e/pansion proects ne; launc*es of coal mines and furt*ertransition of po;er plants from gas to coal. T*us in Jul= 2312 t*e 6inistr= of+nerg= and Coal Industr= of U(raine signed an agreement ;it* t*e C*ina'evelopment ?an( for a US#.H billion loan for t*e financing of gas-to-coalconversions and t*e construction of coal gasification plants. C*ina is among t*emaor contenders for t*e privatisation of t*e fe; state-run coal mines and event*ermal po;er plants in t*e countr=.

)oo(ing at t*e positions *eld ;it* 'onets( and )ugans( in t*e U(rainian coalindustr= in 231# it is not an e/aggeration to sa= t*ese t;o regions comprimisedt*e jcoal *eart of t*e countr=.

'onbass is t*e largest coal basin in U(raine and +urope ;it* total Dcommercialand prospectiveE reserves of 2$3 billion t of bituminous coal and ant*racite.6etallurgical coal made up more t*an *alf of t*e basinjs reserves. ,lmost auarter of all reserves are *ig*-ualit= ant*racite ;*ile anot*er uarter aret*ermal coal ;it* *ig* calorific value and lo; as* content.

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'onbass provided 133G of metallurgical coal production and around >!Gof t*ermal coal production in U(raine in 231# ;*ile t;o ot*er coal basinsD)vovs(o-Fol=ns(= basin in ;estern U(raine and t*e 'neprovs(= lignite basin;est of 'onbassE provided 133G of lignite and onl= #G of t*ermal coal outputs.'onbass coal mines are located mainl= in so-called Old 'onbass Dt*e central and

nort*ern parts of t*e 'onets( region and t*e sout*ern part of t*e )ugans( regionE.6etallurgical coal ;as e/tracted mainl= in t*e central part of 'onets( near6a(eev(a Qorlov(a 'onets( 8rasnoarme=s( 8onstantinov(a and a fe; ot*ercities as ;ell as in t*e 8rasnodar and 8adeevo districts of )ugans(. T*ermal coal;as mainl= e/tracted in ,ntratsit )utugino )isic*ans( and ,lc*evs( districts of)ugans(.

6ost of t*e countr=s largest coal mining assets bot* private Dsuc* asPo(rovs(o=e formerl= 8rasnoarme=s(a=a-Napadna=a-1 8rasnodonugolNas=ad(o 'obropol=eugolE and state-run Dsuc* as 6a(eevugol

Sverdlovant*racite 0oven(i-,nt*racite )ugans(ugol etc.E are located ;it*in t*eOld 'onbass area. Out of U(raines t;elve co(e-c*emical plants Dconsumers oft*e metallurgical coalE seven plants are located in 'onets( and )ugans( providing HHG of t*e total metallurgical coal production in t*e countr= in 231#.

T*ermal po;er plants in 'onets( and )ugans( provided around $3G of t*e totalt*ermal coal consumption in U(raine in 231#.

Since 231# and t*e start of *ostilities bet;een t*e U(ranian govermentand t*e opposition t*e U(rainian government and private investors remain in

control of certain coal mining assets in 'onbass ;it* Pavlogradugol Din t*e'nepropetrovs( region and o;ned b= SC6 QroupE being t*e largest of t*em.T*e= also control t;o of seven regional co(e-c*emical plants ;it* #2G s*are inU(raines metallurgical manufacture. In Jul= 231% all state-run coal minescontrolled b= t*e U(rainian government stopped t*eir ;or( for an indefinite period.

T*e opposition controls && coal mines in 'onets( and )ugans( includingPo(rovs(o=e 8rasnodonugol Nas=ad(o 6a(eevugol 'obropol=eugolSverdlovant*racite 0oven(i-,nt*racite and )ugans(ugol accounting for around!3G of coal manufacture in 'onbass. T*e= also control five of seven regionalco(e-c*emical plants ;it* a ##G s*are in metallurgical coal production.

In #1# t*e s*arp decline of coal production in 'onbass resulted inU(raine boosting t*e import of 0ussian coal Dincluding t*ermal coalE in t*e firstt;o uarters of last =ear. In 21$ and #1$ U(raine said it ;ould refuse to bu=0ussian coal and attempted to import coal from t*e US and Sout* ,frica.o;ever t*e c*allenge U(raine met before ;*en tr=ing to increase coal e/port

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namel= t*e lo; capacit= and dept* of t*e U(rainian ?lac( Sea ports no; startedto pla= against t*e active import of coal. T*e ports simpl= could not process t*ereuired volume of import D;*ile all 0ussian imports still ;ent b= railE.

6eeting t*e t*reat of t*e energ= crisis U(raine rene;ed t*e import of 0ussian

t*ermal coal in t*e final t;o uarters of last =ear to suppl= t*ermal po;er plantsacross t*e countr=. ?= 11% 0ussian coal made up about $3G in U(rainiant*ermal coal suppl=.

'isregarding a discussion on t*e political aspects of t*e situation t*efollo;ing loo(s at ;*at can be done ;it* t*e U(rainian government and privateinvestors to;ards improving t*e *ard situation in t*e countr=s coal mar(et.

Obviousl= t*e maor ;a= out is t*e implementation of 6ins(-2 agreement ;*ic*ma= re-open t*e door to U(rainian and foreign investors to all coal mines in

'onbass.

6ean;*ile t*e suppl= of t*e national energ= s=stem ;it* t*ermal coal *as become t*e priorit= tas( for t*e government. Obviousl= it cannot instantl= boostt*ermal coal production at t*e mines controlled b= t*e government or privateinvestorsk time and investments are reuired and bot* are in deficit. 'ue to political reasons t*e U(rainian government does not ;ant to increase t*e importof coal from 0ussia ;*ic* is an understandable position from t*e business pointof vie; DU(raine alread= is dependent on 0ussia for gas and oilE.

T*e single alternative is to boost coal import from t*e US Sout* ,frica and ot*ercountries. T*is *o;ever reuires a fast resolution of t*e issues of lo; capacit=and dept* of t*e U(rainian seaports. ,s a temporar= measure t*e= ma= usesmaller vessels Das do U(rainian miners for +U e/portE but it ma= be inefficientfor total replacement of t*e 0ussian import. In an= case U(raine urgentl= needsto modernise at least one large seaport ma(ing it capable of ta(ing t*e largevessels used in transatlantic operations. It seems Odessa seaport ;as selected forsuc* a role s*ould t*e ne; Qovernor of Odessa suceed in privatisating t*is assetand attracting reliable foreign investment to fund t*e e/pansion proect.

,not*er possible t*oug* not t*e best solution is to transition t*e po;er

sector bac( to gas. T*e gas suppl= to U(raine from 0ussia is a process t*at *asstrong political and financial support from t*e +U and t*e US. It seems t*atU(raine ;ill continue to receive t*e gas from 0ussia at a more or less acceptable price ;it*out an= s*arp declines in suppl= volumes. T*is t*erefore ma= guaranteet*e gas-fired po;er plants t*e potential to continue t*eir ;or(. In contrast t*ecoal suppl= is a game pla=ed b= U(raine alone as even its close all= Polandrefused to fund t*e suppl= of coal from Silesia to U(raine. T*us if it is a c*oice to

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select bet;een t;o options 0ussian gas or 0ussian coal U(raine *as muc* better negotiation positions for gas.

T*e situation ;it* metallurgical coal is less dramatic as steel mills and co(e-c*emical plants *ave significantl= reduced t*eir production Dt*us lo;ering t*e

total demand in metallurgical coalE. o;ever it is not good for t*e competitive positions of t*e U(rainian steelma(ers especiall= in t*e e/port mar(ets ;*eret*eir place is being re-occupied ;it* suppliers from ,P,C and 0ussia.

T*e political tensions in eastern U(raine *ave t*e visible economicmeasures to ma(e coal mining industr= suffer greatl=.

U(rainian coal mining enterprises in 231$ sa; a 22.$G decline in production of ra; coal from 231# to H$.>!H million tonnes according to roug*estimates t*e U(rainian +nerg= and Coal Industr= 6inistr= said.

Co(ing coal output last =ear fell b= #2.1G to 1H.13> million tonnes ;*ile production of po;er-generating coal declined b= 1&.%G to $&.&H! million tonnes.

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17/36

T*e armed conflict in eastern U(raine *as bro(en t*e countr=s coalindustr= into t;o parts9 one is under control of t*e aut*orities in 8iev and anot*er one is under t*e control of pro-0ussian rebels. ?= t*e end of 7ovember 231$ alarge number of mines in t*e countr= *ad been closed. 6an= of t*em *ave beencompletel= destro=ed9 t*e= lie in t*e region ravaged b= t*e ;ar bet;een U(rainestroops and separatist rebels.

,fter t*e cease-fire at t*e beginning of 231% t*e aut*orities in 8iev and t*eleaders of t*e self-proclaimed republics announced t*e implementation of t*estrategies for t*e development of t*eir respective parts of t*e countr=s coal c*ain.T*e po;er plants and steel mills t*at consume coal are located mostl= in distantmetropolitan areas controlled b= 8iev or 0ussia. +/port facilities in t*e Crimeaare no; controlled b= 0ussia. T*e prospects for t*e mines and t*e transportation

infrastructure remain unclear. , large investment ;ill be reuired to restore t*emines. ?efore t*at can become a consideration t*e geopolitical situation must beresolved.

Until recentl= U(raine ;as t*e t*ird largest coal producer in +urope. It ;ill probabl= never return to t*at level of production R &% million metric tons DmtE in231#. In general t*e prospects of overcoming t*is crisis for coal producers remainas obscure as t*e prospects of ending t*e U(raine conflict as even t*e mostambitious plans for bot* sides can uic(l= unravel as *ostilities resume.

U(raine Mill Cut Coal Industr= b= alf In earl= 6arc* 231% t*e problems of t*e U(raine coal industr= in addition to t*e

economics gained social attention as 23333 miners from t*e five coal-producingregions of t*e countr= ;al(ed off t*e ob. T*e c*airman of t*e Independent TradeUnion of 6iners of U(raine 6i(*ail Fol=nets ;arned t*e aut*orities t*at if t*eindustr=s problems ;ere not resolved anot*er 13333 miners ;ould marc* on8iev to protest ;*ic* ;ould tarnis* t*e image of t*e ne; U(rainian government.,nd t*e= did.

,bout 23333 coal miners in U(raine launc*ed stri(es protesting againstt*e plans of t*e government and demanding t*e pa=ment of salar=. DP*oto credit9Union of 6iners of U(raineE

Protest actions ;it* several t*ousand miners too( place ,pril 21-2$ 231%at Independence Suare in front of t*e Presidents residence. Unrest amongminers *as not stoppedk regional protests are occurring ;ee(l=. ,s t*is editionof Coal ,ge ;as going to press )v=v Coal Compan= *ad bloc(ed t*e )viv-0ava-0uss(a= *ig*;a= demanding t*e pa=ment of salar=.

6ost of t*e people emplo=ed b= t*e U(rainian coal industr= *ave notreceived compensation since October 231$. T*e miners *o;ever are as(ing for

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more t*an salariesk t*e= ;ant Fladimir 'emc*is*in t*e 6inister of +nerg= andCoal Industr= of U(raine to resign. e announced plans to close *alf of minesand dismiss 2!333 miners b= 231&k moreover 'emc*is*in *as been critici"edrecentl= b= political opponents and coal operators ;*o see *im as incompetent.

'emc*is*ins star( vision for t*e future of U(raines coal industr= consistsof t*ree steps. T*e first R and probabl= t*e most important R is t*e abandoningof an= state support for coal producers. )ast =ear state support for t*e coalindustr= amounted to U, 11 billion DH33 millionE. Its estimated t*at !3G-&3Gof mines in t*e countr= are producing coal at a loss. T*e conditions of t*eagreement for monetar= support in t*e form of loans from t*e International6onetar= und DI6E stipulate t*at t*e government s*ould no longer subsidi"eloss-ma(ing industries.

T*e second step is t*e privati"ation of t*e mines ;*ic* are currentl=o;ned b= t*e 6inistr=. Toda= it o;ns #% mines. T*e government *opes to sell as

man= as 2# mines ;*ile t*e remaining 12 ;ould be closed. T*e government also*opes t*e ne; o;ners ;ill invest t*e capital to moderni"e t*ese mines.'emc*is*in stated t*at t*ere are several preliminar= investment agreements ;it*some C*inese companies for as muc* as #.H billion.

T*e t*ird and last step is coal c*ain optimi"ation ;*ic* provides t*at t*egovernment ;ould purc*ase coal for t*e lo;est cost producer or *ave t*e optionto import coal if its available at a lo;er price. T*is ;ould ban(rupt almost *alf of t*e coal mines in t*e countr= but it ;ould improve t*e governments balances*eet and it mig*t lo;er electricit= rates. T*e +nerg= 6inistr= estimates t*at b=231& t*is plan ;ill reduce emplo=ment in t*e countr=s coal industr= from t*e

current level of %2333 to less t*an 2%333. 7o matterk U(raines coal production ;ill fall in t*e near term. In Januar=-

ebruar= 231% Dt*e latest statistics availableE steam coal production dropped b=$&.!G or $.& million mt to %.&! million mt =ear-on-=ear. T*e production ofco(ing coal in t*e same period fell b= H&.!G or 2.& million mt to 1.# million mt.

ardest *it in t*e current crisis are state-o;ned coal mines ;*ic* *ave t*e lo;estlevel of profitabilit=. In Januar=-ebruar= 231% t*e= decreased production b=!1.%G or #.1 million mt to 1.2$ million mt including co(ing coal production;*ic* dropped b= !#.>G or 1 million mt to 3.# millionk also energ= coal

dropped b= !3.$G or 2.1 million mt to 3.> million mt.In 231$ U(raine reduced coal production b= 22G to H% million mt compared to231# including t*e coal production at t*e territories controlled b= pro-0ussianrebels. ,lmost all forecasts sa= t*at t*is =ears drop ;ould be more significantand coal production can decrease b= more t*an one-t*ird. U(raine mig*t produce$3 million mt in 231%.

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0epublics ,dopting Separate 'evelopment ProgramT*e optimi"ation plans t*at t*e 8iev government is considering does not includean= mines located in t*e territor= controlled b= pro-0ussian rebels. T*e *eads oft*e so-called 'onets( Peoples 0epublic D'P0E and t*e )u*ans( Peoples0epublic D)P0E previousl= stated t*at t*e= ;ant to sell coal to U(raine T*ermal

Po;er Plants DTPPE. Some 8iev politicians favor purc*asing coal from t*e self- proclaimed republics but t*e official 8iev government is afraid t*at t*e mone=;ill be diverted from t*e mines to support t*e rebels.

T*e future of almost all coal mines in t*e territories controlled b= t*e pro-0ussian rebels is clearl= connected to geopolitical factors especiall= decisionsmade in 8iev. ,cting on t*eir o;n t*e leaders of t*e rebels in 6arc* 231% publis*ed a coal development program for 231%.

T*e program in t*e 'P0 provided t*at unrecogni"ed republics t*is =ear ;ill produce 13.# million mt of coal according to t*e 6inistr= of uel and +nerg=

Comple/ of t*e rebel republic +duard Pol=a(ov. e said t*at t*is is # million mtDor $1GE more t*an in 231$ and %.$G greater t*an 231# ;*en t*e industr= *adnot =et felt t*e impact of t*e fig*ting.

Similar to t*e coal mines in t*e territories controlled b= 8iev troops t*e coalmines in t*e self-proclaimed republics also *ave a ver= lo; level of profitabilit=and t*e rebel leaders promise to improve t*is situation b= increasing efficienc=.

In 231% Pol=a(ov said coal mines in t*e 'onbass Da region under 'P0 controlEe/pect a ##G increase in development ;or( and t*e= also e/pect to reducedilution Das* contentE of coal b= 1.>G. It is e/pected t*at t*is measure ;illincrease t*e value of t*e coal produced b= about $G so mines t*is =ear ;ill

receive additional U, 2%3 million D13.% millionE if t*e= can sell t*is coal tosomebod=.

T*e biggest problem for t*e coal industr= in t*e self-proclaimed republicis t*at it cannot legall= e/port coal. T*e mines cannot even sell coal to 0ussia;*ic* is supporting t*e rebels as 0ussian customs simpl= cannot legall= acceptcargo not passed t*roug* U(rainian customs. Ironicall= all of t*e customs officesin t*e region are controlled b= t*e rebels. T*ere are alread= large stoc(s of coal att*e ;are*ouses t*roug*out t*e region and it is unclear ;*ere it finall= ;ill go.

T*e strateg= for coal industr= development in rebel republics *as anot*er

option. , special sc*eme *as been developed ;*ic* involves transporting coal tot*e 0ussian port Taganrog and its furt*er suppl= via t*e ,"ov and ?lac( Seas tot*e 6iddle +ast in particular to Iran Tur(e= and 7ort* ,frica. T*e idea is not asoutrageous as it seems as t*ese countries *ave previousl= purc*ased coal fromt*e 'onbass mines and lost t*e abilit= to do it ust several mont*s ago.

,ccording to t*e *ead of t*e Industr= 'evelopment ,genc= in t*egovernment of 'P0 evgen= )avrenov t*ere are do"ens of enterprises in t*ese

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countries ;*ic* *ave been constructed b= t*e Soviet Union ;*ere t*e steel or po;er production processes reuire t*e use of coal ;it* similar c*aracteristics ast*ose produced in t*e 'onbass.

0ussian anal=sts believe t*at t*ere is a possibilit= t*at suc* coal-suppl=agreements could reall= be concluded in t*e near term. Some companiesdepending on ;*at *appens bet;een t*e U.S. and Iran ma= not even *ide it. T*efirst vice-president of t*e 0ussian Union of +ngineers Ivan ,ndrievs(= said t*att*e rebels republics toda= *ave enoug* political po;er to negotiate ;it* IranTur(e= and 7ort* ,frica for t*e sale of at least 2 million mt of coal annuall=.

,ccording to ,ndrievs(= t*is issue ;ill be crucial in t*e actions of t*e leaders ofself-proclaimed republics as coal production over t*e recent decades ;as t*eeconomic mainsta= of 'onbass region. Mit*out a coal industr= t*ese regions no;*ave no c*ance to survive t*e current crisis and continue ;it* t*eir struggle forsovereignt=.

6oreover e/perts coal mines at t*e rebel republics ;ill li(el= concludenon-official agreements t*is =ear and sell coal to 0ussian companies ;*ic* ;illfurt*er suppl= it for e/port under t*e guise of 0ussian-origin coal. Obviousl= t*issc*eme ;ould be completel= illegal and ma= result in t*e introduction of furt*ersanctions against some 0ussian companies but t*e option still remains possiblegiven t*e fact t*at in general 0ussian politics became slig*tl= adventurous last=ear.

Figure # $!e gate of one of t!e coal mines in onets% Oblast" $!e sign translates to &Coal is t!e gold of

onbass"

U(raine is ;ell-endo;ed ;it* energ= resources especiall= its #1 &33

million tonnes of proven coal reserves as at t*e end of 2312 ran(ing t*e countr=

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7o. ! in t*e ;orld. 6aor coal deposits are located in t*e 'onets( )viv Fol=n

and 'nipro coal basins as ;ell as in t*e 'nipro-'onets and Na(arpatt=a coal

depressions. T*e deposits are located in t*in seams D3.& 1.3 metresE at an

average dept* of around !33 metres. Some mines are deeper t*an 1 333 metres.

,lt*oug* coal production declined significantl= from 1>>3 to 1>>H it *as

stabilised since 2333. M*ile U(raine is totall= self sufficient in coal it remains

*eavil= reliant on natural gas and oil imports. Coal-fired po;er plants produced

#&.2 G of U(raines total electricit= suppl= in 2311. U(raines +nerg= Strateg= to

23#3 updated in 231# envisages increasing t*e installed capacit= of coal-fired

po;er plants b= upgrading e/isting units and constructing ne; ones.

,s of 'ecember 2312 more t*an #%3 legal entities operated in t*e coal lignite

and peat production processing and agglomeration sectors in U(raine of ;*ic*appro/imatel= 2%3 produced and processed *ard coal. T*ere are more t*an 1$#

mines in U(raine. T*e 6inistr= of +nerg= supervises 22 coal production

enterprises ;*ic* operate >$ mines including $# private mines. T*e eig*t largest

companies account for appro/imatel= H# G of domestic coal production.

Coal is sold eit*er under bilateral contract on t*e free mar(et or in t*e case of

some sales from state-o;ned mines via t*e ;*olesale mar(et operator Ugol

U(rain=. Coal trading ;ill become even more mar(et based in 231# as it moves

on to t*e U(rainian +nerg= +/c*ange. ?= 231H t*e government plans to furt*er

liberalise t*e coal mar(et accelerate restructuring of t*e coal sector close

unviable mines and privatise t*e remaining more attractive coal mining

companies. rom 231% to 23#3 t*e coal industr= is e/pected to invest steadil=

gro; and reac* an output of 11% million tonnes.

In 2312 an agreement ;as signed for a #.! billion loan from t*e State ?an( of

C*ina for proects in U(raine to substitute natural gas ;it* domestic coal and for

t*e construction of coal gasification plants.

'ard coal

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In 2312 total coal production increased b= $.3 G to H%.H million tonnes.

Steam coal production accounted for !1.1 G of total production. Coal

consumption also increased to !$.# million tonnes of ;*ic* %%.% G ;as used in

po;er plants.

T*e increase in coal production in 2312 ;as ac*ieved after several =ears of

capital investments in order to modernise t*e sector. State financing for t*e

tec*nical modernisation of mines amounted to U, 1#.2 billion ;it* state mines

spending U, >.> billion on capital e/penditures in 2312 !2 G more t*an in

2311.

State enterprises produced 2$.& million tonnes in 2312 including 1!.! million

tonnes of steam coal and !.2 million tonnes of co(ing coal. T*e s*are of state

enterprises in total domestic coal production *as been decreasing due to structuralc*anges in t*e industr= resulting from t*e U(rainian energ= privatisation

programme and increased investments b= t*e private sector.

'T+8 t*e largest private energ= compan= in U(raine produced #>.! million

tonnes of run of mine coal ;*ic* accounted for appro/imatel= $H.1 G of

U(raines total coal production. 'T+8 o;ns leases or *as concession rig*ts to

operate #1 coal mines and 1# coal enric*ment plants including t*ree mines and

one coal enric*ment plant in 0ussia.

?ased on U(rainian government estimates of coal reserves 'T+8 *as production

licenses after reserve reclassifications ne; coal discoveries and acuisitions

covering an estimated 1 H>>.! million tonnes of reserves.

'T+8s operating subsidiar= 'T+8 Pavlogradugol is t*e largest coal producing

compan= ;it* an annual output of appro/imatel= 1!.3 million tonnes. 'T+8

Pavlogradugol operates ten mines and an integrated mining comple/ including

transportation and production infrastructure located in t*e 'nipropetrovs( region

of U(raine ;it* estimated coal reserves of H%2.> million tonnes and a production

life of %2 =ears assuming current production rates.

'T+8s subsidiar= 'T+8 6ine 8omsomolets 'onbassa operates one mine and

coal enric*ment plant located in t*e 'onets( region ;it* estimated coal reserves

of 113.> million tonnes and a production life of $# =ears.

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In 2311 'T+8 entered into t;o $> =ear concession agreements ;it* t*e

6inistr= of +nerg= and one $> =ear lease agreement ;it* t*e State Propert=

und pursuant to ;*ic* t*e compan=s subsidiaries 'T+8 0oven(=ant*racite

'T+8 Sverdlovant*racite and 'T+8 'obropol=eugol operate si/ mines and an

integrated mining comple/ including t*ree coal enric*ment plants located in t*e'onets( and )ugans( regions five mines and an integrated mining comple/

including t*ree coal enric*ment plants located in t*e 'ol"*ano 0ovenets(=i

region and five mines and an integrated mining comple/ located in t*e 'onbass

region. ,s at #1 'ecember 2312 'T+8 0oven(=ant*racite 'T+8

Sverdlovant*racite and Coal industr= across +urope 231# %! 'T+8

'obropol=eugol *ave coal reserves of 1H2.> million tonnes 23&.3 million tonnes

and #H!.& million tonnes ;it* average production lives of ## =ears $3 =ears and

>$ =ears respectivel= assuming current production rates.

In ebruar= 2312 'T+8 acuired a >%.$ G sta(e in its subsidiar=

?ilo"ers(a 6ine ;*ic* operates one mine in t*e 'obropols(= region ;it*

estimated coal reserves of !1.H million tonnes and a production life of >3 =ears.

,lso in 2312 t*e compan= acuired t*ree mines located in t*e 0ostov region of

0ussia ;it* aggregate reserves of 12%.H million tonnes and an average production

life of !# =ears. T*e t*ree 0ussian mines are operating t*roug* 'T+8s

subsidiaries Obu(*ovs(a=a 'on ,nt*racite and Sulinant*racite.

In 2312 'T+8 e/ported 2.& million tonnes of coal t*roug* its subsidiar=

'T+8 Trading ))C primaril= to Tur(e= India +g=pt 0ussia t*e US, and +U

member states. T*e countr= as a ;*ole e/ported H.1 million tonnes.

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(ignite

U(raine produces onl= small volumes of lignite less t*an 233 t*ousand

tonnes eac* =ear from t*e Ole/andria and 6o(ra 8al=*ir(a deposits in t*e

8irovo*rad and C*er(as= regions near t*e 'nipro 0iver. o;ever ;it*

estimated reserves of 2 ##H million tonnes t*ere is great potential and in 2312

U(raine and C*ina began a oint proect to e/ploit lignite for electricit= generation

in t*e 8irovo*rad region.

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6aorit= of produced steam coal in U(raine is consumed domesticall= forelectricit= production. Coal comprised $#.!G of fuel for energ= generatingcompanies in 2311 ;*ic* ma(es it second most important fuel after nuclear.

Increased demand for steam coal is supported b= underutili"ed capacit= ofcoal-burning TPPs implementation of pulveri"ed coal inection DPCIE tec*nolog=at metallurgical plants and increasing e/port volumes. o;ever currentl=

U(raine *as a surplus of ant*racitic coal ;*ic* is mainl= e/ported to Tur(e=?ulgaria and Mestern +urope countries.

Coal production in U(raine *alved over t*e last 23 =ears on t*e bac( oflo; demand in t*e mid-1>>3s and on a lac( of investments into sectorsdevelopment. U(raine *as a c*ance to restore former potential implementingsuccessful reforms.

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Over t*e last 2 =ears coal production increased b= 1$G from !2 mmt in 233> to&2 mmt in 2311 mainl= on increased production from private mines. urt*erincrease in mining output is e/pected after t*e privati"ation and moderni"ation ofnearl= 133 state mines.

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Ukraine Coal Exports by Year

year exports change

1980 NA

1981 NA

1982 NA

1983 NA

1984 NA

1985 NA

1986 NA

1987 NA

1988 NA

1989 NA

1990 NA

1991 NA

1992 8,708.26 NA

1993 4,548.14 -47.77 %

1994 4,526.09 -0.48 %

1995 2,645.55 -41.55 %

1996 2,947.58 11.42 %

1997 3,012.62 2.21 %

1998 2,430.60 -19.32 %

1999 2,881.44 18.55 %

2000 3,742.35 29.88 %

2001 5,632.81 50.52 %

2002 4,623.09 -17.93 %

2003 6,053.89 30.95 %

2004 7,802.16 28.88 %

2005 4,041.07 -48.21 %

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2006 4,279.17 5.89 %

2007 4,631.91 8.24 %

2008 6,395.61 38.08 %

2009 6,847.56 7.07 %

2010 8,443.71 23.31 %

2011 9,896.55 17.21 %

2012 8,204.50 -17.10 %

Ukraine Consumtion by Year

year consumption change

1980 NA

1981 NA

1982 NA

1983 NA

1984 NA

1985 NA

1986 NA

1987 NA

1988 NA

1989 NA

1990 NA

1991 NA

1992 132,331.40 NA

1993 114,773.80 -13.27 %

1994 92,090.40 -19.76 %

1995 94,668.70 2.80 %

1996 74,109.49 -21.72 %

1997 71,511.34 -3.51 %

1998 72,537.60 1.44 %

1999 71,912.59 -0.86 %

2000 72,349.10 0.61 %

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2001 70,000.08 -3.25 %

2002 70,665.88 0.95 %

2003 77,432.96 9.58 %

2004 69,248.30 -10.57 %

2005 70,633.91 2.00 %

2006 76,103.58 7.74 %

2007 76,964.48 1.13 %

2008 72,307.22 -6.05 %

2009 61,879.35 -14.42 %

2010 68,571.48 10.81 %

2011 70,641.63 3.02 %

2012 77,327.14 9.46 %

How crucial is Eastern Ukraine coal?

T*e collapse of coal production in t*e territories controlled b= t*e self-

proclaimed '70 and )70 is an outcome of conflict in eastern U(raine. ,s of

'ecember 1 231$ t*e coal reserves at U(rainian coal-fueled po;er plants

decreased b= 2.% times relative to t*e same period last =ear. Qiven t*is s*arp

deficit of coal U(raines Cabinet of 6inisters ;as forced to loo( for coal abroad

to cover t*e s*ortage. U(rinterenergo a state-o;ned foreign trade compan=

signed a contract ;it* ?ritis* Steel 6ont Trading )td to purc*ase 1 million tons

of coal from Sout* ,frica in ,ugust. T*e first Sout* ,frican coal ;as delivered at

t*e end of October but due to some political factors Sout* ,frican coal ;as

declared unfit for t*e usage. ?ecause U(raine cannot ta(e out about t*ree million

tons of coal from t*e 'onbas De/tracted b= U(rainian state-o;ned minesE t*e

nations leaders*ip *as no c*oice but to continue loo(ing for t*e alternative

energ= suppliers. 8a"a(*stan could e/port coal to U(raine from +(ibastu" coal

field and cover some of U(raines needs.

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Qiven reduced import of 0ussian gas *aving a stable suppl= of coal is

criticall= important for t*e energ= securit= of U(raine. Toda= t*e maor obstacles

to its securit= are ongoing armed conflicts in t*e ;ar-torn region of 'onbas

;*ic* *alted t*e ;or( of H& coal mines. o;ever even if t*e peace is establis*edin t*e region t*e industr= ;ill still *ave man= problems.

Since t*e collapse of t*e Soviet Union U(raines coal industr= ;as in asevere crisis ;*ic* ;as a continuation of t*e trend t*at started in t*e Soviet period9 coal production fell from 21H million tons in 1>!% to 1&> million tons in1>&% and even more s*arpl= later from 1H% million tons in 1>>3 to !1 million tonsin 1>>H. T*e 'onbas *as been e/periencing t*e difficulties t=pical for t*e coal-mining regions of Qerman= D0u*rE t*e U8 D7ort* +ast +nglandE Poland DUpper

SilesiaE and 0ussia D8u"bassE in t*e last t*ird of t*e 23t* centur=. , large numberof unprofitable mines and uarries alive e/clusivel= due to t*e financial supportfrom t*e state budget ;as a clear signal t*at t*e industr= needs a t*oroug* reformt*at ;ould *elp to ma(e t*e industr= more profitable.

Figure 4oal production in Ukraine, mln tons,19!"199# and $%erage annualproduction o& one miner in Ukraine, 'ussia and (oland, tons o& coal

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Strong trade unions in t*e mining industr= ;ere a serious obstacle to t*ese

steps. ,lt*oug* in t*e 1>>3s t*e number of miners did not e/ceed %G of total

emplo=ment in U(rainian econom= miners triggered more t*an a *alf of all

organi"ed stri(es at t*at times. T*eir demands *ad not onl= economic De.g. provide eac* miners famil= ;it* a separate apartmentE but also political be it t*e

constitutional nature provision to t*e 'eclaration of State Sovereignt= of U(raine

D1>>1E and *olding of earl= presidential elections D1>>#E. 6oreover t*eir actions

*ad a serious impact on t*e political spectrum ;it*in t*e *ig*er ec*elons of

po;er. So in 1>># after t*e miners marc* on 8iev efim Nviagils(i= ;*o ;as

t*e director of t*e Nas=ad(o mine and t*e c*airman of t*e 'onets( e/ecutive

committee and 'onets( Cit= Council ;as appointed to t*e irst 'eput= Prime6inister. )argel= because of *is influence t*e Cabinet allocated t*e *uge

subsidies for t*e coal industr= t*e total amount of ;*ic* at t*e end of 1>># ;as a

record-brea(ing9 #.&G of Q'P. T*e situation significantl= c*anged after )eonid

8uc*ma ;as elected as t*e President of U(raine in 1>>$. Coming from

'nepropetrovs( *e tried to limit t*e influence of t*e 'onets( clan ;*ic* could

*ave been done via restricting of t*e 'onbass coal industr=. Qiven a *ig* inflation

and a severe contraction of Q'P t*e government could reduce t*e amount ofsubsidies for t*e coal mines to 3.!G of Q'P in 1>>%. ,t t*e same time t*e

Cabinet began intensive negotiations ;it* t*e Morld ?an( ;*ic* lead to a

program of radical reforms aimed to create a competitive coal mar(et in U(raine.

In 'ecember 1>>H t*e Morld ?an( and U(raines Cabinet of 6inisters

signed an agreement on t*e allocation of #33 million dollars intended for coal

reform implementation. Over t*e ne/t four =ears about sevent= unprofitable

mines ;ere closed ;*ic* led to t*e dismissal of more t*an 1%3 t*ousandemplo=ees. o;ever t*e industr= continued to depend on t*e subsidies9 at t*e

end of 2333 t*e subsid= ;as close to 1.1G of Q'P. ulia T=mos*en(oR 'eput=

Prime 6inister for +nerg= in a pro-reform government of Fi(tor us*c*en(o

;*o *eaded t*e Cabinet of 6inisters in 1>>>-2331Rapparentl= *ad to resign

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;*en t*e government after an attempt to eliminate t*e subsidies. Fitali= a=du(

*er successor previousl= ;or(ed as 'eput= ead of t*e 'onets( 0egional

,dministration and ;as also involved in t*e creation of t*e Industrial Union of

'onbass Corporation t*at traded gas. In 'ecember 2332 Fi(tor anu(ov=c* t*eformer governor of t*e 'onets( region became t*e Prime 6inister and ensured

t*e preservation of coal industr= subsidies. T*e situation did not c*ange after t*e

Orange 0evolution too9 during t*e period from 233% to 2313 t*e amount of

subsidies increased from U, #.# billion D3.!$G Q'PE to U, !.! billion

D3.!1G Q'PE.

, number of problems of t*e coal industr= remains unresolved to t*is da=.irst of all t*e productivit= is lo;. M*ile t*e average annual production of oneminer in Poland in 233! stands at !H1 tons of coal t*e U(rainian counterpart gotonl= 1&> tons. 'ifficult mining conditions Dt*e average dept* of current e/istingmines is !33 mE result in an e/tremel= *ig* deat* and inur= rate9 t*e number ofdeat*s in mining accidents per 1 million ton of coal e/tracted is 2.2 as of 233&.or comparison in 0ussia even during t*e unfavorable for t*e coal industr= =ear

of 233! ;*en t*e release of met*ane in t*e Ul=anovs( 6ine too( t*e lives of 113 people t*is rate ;as 3.!!. T*e ot*er ,c*illes *eel of t*e U(rainian coal industr=is maintenance of t*e non-mar(et pricing a (e= role in ;*ic* is pla=ed b= 4T*eCoal of U(raine5 State +nterprise t*at bu=s t*e coal from state mines and resells itto t*e po;er plants.

n teritoriile controlate de gruparile separatiste pro-ruse si

trupele ruse regulate se afla H3G din minele ucrainene D&&

de companiiE cărbunele fiind e/tras in 2$ dintr-un total de ># de mine din

'onbass. ,cest lucru a fost anun atț în cadrul unei întlniri ce a avut loc în

orasul )=s=c*ans(intre repre"entantii industriei mineritului transmiteserviciu de presa al ,dministra ieiț 0egionale din )ugans(.

n legătură cu luptele în partea de est a Ucrainei care au început la sfr itul luniiș

aprilie din ># de mine de carbunedin 'onbas se e/trage carbune doar in 2$ la

care se adauga 12 mine aflate în alte regiuni din Ucraina. n total sunt #H de mine

a declarat ministrul adunct al energiei din Ucraina uri= N=u(ov.

+l a preci"at că H3 de mine sunt in conservare iar alte ! sunt distruse complet.

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Oficialul a adăugat că pe teritoriul controlat de grupurile teroriste se afla &&

de mine. ,cest lucru inseamna H3G din numărul total de mine din Ucraina a

conc*is N=u(ov.

'in cau"a lipsei de cărbune termic e/ploatat in mare parte în "ona de

ră"boi Ucraina a redus cu %3G e/portul de energie electrică.6ai mult dect att terori tiiș au blocat lilvrarile de cărbune spre Ucraina. n

acela i timpș după cum anunta managementulminelor din "ona ocupata

carbunele din 'onbas este în mod constant incarcat si trimis cu grantituri de

tren spre edera ia 0usăț . 7icaieri in Ucraina colapsul economic al tarii nu este atat de socant

precum in orasul Fu*le*irs(. ,ici locuiesc &.333 de oameni si nicio cladire nu aramas nedoborata de bombardamentele rebelilor pro-rusi in campania lor de acuceri orasul 'ebatseve. In Fu*le*irs( functiona inainte de inceperea ra"boiuluio mina de carbune importanta. , auns sa fie inundata atunci cand i s-a taiat

electricitatea acum cateva luni iar statiile de pompare au fost oprite. Ful*e*irs( seafla la &3 de (ilometri de 'onet(.

+conomia Ucrainei este cenusa. 6I-ul si-a reevaluat in scadere previ"iunile economice pe 231% estimand o contractie de economica de >G desio serie de analisti spun ca scaderea va fi de 13G )a sfarsitul anului inflatia vaaunge la $HG din cau"a ritmului accelerat in care creste pretul la ga". Insa 6Iaprecia"a ca Ucraina este la timp cu toate reformele cerute de fond. 'esi numai$G din teritoriul Ucrainei este sub controlul rebelilor premierul Iateniu( a notatca Ucraina a pierdut 23G din economie. 'onbas era *ubul industrial al Ucrainei.C*iar daca conflictul din Ucraina nu se va stinge modul in care aceasta taradisperata va reusi sa isi revina va depinde foarte mult de ritmul in care industria si

infrastructura vor fi reparate. Fa depinde si de cat de repede Ucraina va reusi sa seinterconecte"e cu drumuri si cai ferate in ciuda determinarii liderilor rebeli pro-rusi de a obtine autonomia in regiunile 'onets( si )ugans(.

6inistrul +nergiei ucrainene a spus ca tara sa controlea"a doar #%G dincele >% de mine de carbune vitale pentru sustinerea retelelor de energie electrica.0estul minelor se afla pe teritoriile controlate de rebeli si sunt inundate.Situatia Ucrainei este de-a dreptul dramatica. Fan"arile din retail au sca"ut cu#3G in ultimele doua luni iar van"arile de automobile s-au prabusit cu !HG in perioada ianuarie aprilie. Populatia ucraineana este presata atat de cotele maride inflatie cat si de faptul ca guvernul de la 8iev a dispus ing*etarea salariilor si a pensiilor. In plus 8ievul are probleme si cu re"ervele monetare si isi ac*ita cu

greutate datoriile e/terne. 6edia salariilor lunare in Ucraina este de 1&H de dolariiar puterea de cumparare a monedei ucrainene este decimata de nivelul ridicat alinflatiei. 8ievul respecta si reteta austera impusa de 6I care a redus cu #3 demiliarde de dolari programele sale sociale. 0ata somaului in Ucraina este doar de13G insa oricand aceasta cifra se poate dubla. Singura veste buna pe careucrainenii au primit-o in ultima perioada este ca in sectorul bancar a e/istat ocrestere in luna aprilie a depo"itelor private acest lucru intamplandu-se pentru prima oara din ianuarie 231$.

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Unii analisti sustin ca singura sansa a Ucrainei de a o lua de la capat estesa intre in incapacitate de plata si sa nu mai isi poata ac*ita datoriile internationalein fata creditorilor sai. 'etinatorii straini de titluri de stat ucrainene suntinvestitori sofisticati. ,ici vorbim si despre una dintre cele mai mari firme deinvestitii americane. ,tunci cand s-au apucat de investit in Ucraina stiau foarte

bine la ce riscuri se e/pun. In mod normal banii de la 6I ar trebui sa fieinectati in economia ucraineana nu catre ac*itarea datoriilor catre creditoriistraini. Pana acum Ucraina a primit 13 miliarde de dolari de la 6I in ultimele12 luni iar aceasta suma a fost redirectionata imediat catre plata investitorilorstraini care au bagat bani in titlurile de stat ucrainene.Pentru a auta Ucraina 6I si donatorii din Fest au ca"ut de-acord sa acorde8ievului $3 de miliarde de dolari pentru a stabili"a economia. Suma esteinfiorator de mica in comparatie cu ce probleme are Ucraina. 6ai important esteca 6I-ul cere ca 1% miliarde de dolari din aceasta asistenta financiara sa vina dinrestructurarea titlurilor de stat ale Ucrainei. In esenta 6I cere ca cei care auinvestit in Ucraina sa accepte o parte din investitia facuta. +vident o asemenea

solutie este de neacceptat pentru creditori.Separatitii din 'onbas au acaparat minele de e/tragere a cărbunelui din estul Ucrainei iaranali tii vorbesc despre patru sc*eme de contrabandă care i-ar îmbogă i de pe urma auruluiș țnegru5 în timp ce pre ul acestuia pe pia a neagră s-a maorat de trei ori.ț ț

Potrivit unei investiga ii reali"ate de postul TF ucrainean TS75 mii de familii de minerițucraineni mor de foame după ce separati tii care au acaparat minele le oferă de patru ori maiș pu ini bani pentru lucrările de e/tragere. Terori tii5 au vă"ut în e/tragerea cărbunelui oț ș posibilitate să- i aurească bu"unarele de aceea au lansat între ei un adevărat ră"boi alșcărbunelui5.

'upă ce ucrainenii plăteau anul trecut pnă la o mie de *rivne pentru o tonă de cărbune

anul acesta au auns să plătească i două mii de *rivne la începutul toamnei iar acum pe pia aș țneagră o tonă de cărbune costă #2 mii de *rivne. +volu ia pre urilor este demonstrată i deț ț șanun urile de pe Internet.țUcraina a investit în ultimii cinci ani 1H! de milioane de *rivne sau circa 1>3 de milioane deeuro în e/tragerea cărbunelui în ar(ov i 'one ( iar acum separati tii au distrus minele înș ț șcteva luni.

Circa H3 de mine din >% nu func ionea"ă iar 1% sunt complet distruse. C*iar dacățminerii din 'onbas sunt cei care au fost adep ii lumii ruse5 i c*iar au luat armele în mnăț șacum lumea rusă5 nu a venit cu acela i răspuns. Sunt nevoi i ca pentru bănu i să muncească maiș ț țdeparte în aceste găuri fiind impu i de ocupan i5 sus ine ministrul +nergiei i Industrieiș ț ț ș

Cărbunelui Iuri Niu(ov.Jurnali tii ucraineni au depistat patru sc*eme prin care separati tii vnd cărbunele. Prima seș șreferă la comerciali"area prin posturile vamale5 ale administra iei ilegale din regiunilețseparatiste iar a doua prevede livrarea în 0usia pentru ca ulterior cărbunele să aungă pe pia ațucraineană.

0usia nu are nevoie de cărbunele nostru deoarece îl au pe al lor la un pre de #3 dețdolari5 a respins această variantă ministrul Niu(ov. Totu i observatorii OSC+ au fi/at recentș

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ca"uri în care cărbunele ucrainean era transportat în 0usia.

, treia sc*emă vorbe te despre vn"area cărbunelui la întreprinderile de asigurare cușagent termic de pe teritoriul ocupat de insurgen ii ru i iar a patra - despre un sc*imb dintre 0usiaț și Ucraina prin intermediul ma inilor cu încărcătură umanitară trimise de 6oscova terori tilor5.ș ș ș

Investiga ia de"văluie drama pensionarilor ucraineni care trebuie să dea două pensii pentru oțtonă de cărbune i lupta acerbă între cei care proteea"ă separati tii ru i pentru aurul negru5.ș ș ș

Carbunele ucrainian: o industrie in criza

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