Efforts to increase Ukrainian coal production now will come to little effect because of the hopelessly outdated technologies, in both production and consumption, admits Alexei Komarov (Ukraine, economist).

Ukrainian efficiency output in thermal electric power generation is 22 per cent (against 37 per cent in Poland), in long-distance heating—51 per cent (against Polish 67 per cent).

Thus, despite the giant demands for investments, it would be wise to modernize consumption before taking steps to increase domestic production.

Coal production has been profitable in Ukraine only due to public subsidies, Komarov highlights. Subsidies excluded, exporting from Russia proves more efficient.

Theme:  Current situation/Coal/Ukraine