The investment component in the overall budget allocated for the development and modernization of mines should be increased. This will allow to boost the production and reduce the cost of coal, which is currently higher than the market price of energy resources. This was stated by Prime Minister of Ukraine Volodymyr Groysman during A Question Time for the Government at the Verkhovna Rada.

He stressed that the modernization programs being implemented at the private mines  allow to ensure a well-ballanced prime cost, however at the state-owned mines - there is a difference that is covered by the state budget.

"We allocated UAH 1.4 billion to cover the difference. But the task is to stop paying the difference and begin to invest actively in the development of the industry. For these purposes next year we  disburse a sum worth UAH 2.3 billion. The goal is to reach the balance of maintaining the difference in the cost price, which is likely to remain, and investing in increasing production and reducing production costs(extraction)", the Head of Government stressed.

Background

According to the data provided by Ministry of Energy and Coal Industry of Ukraine, at present 100% of the coal mined is paid for on time and without delays. However, there is an indebtedness of a difference in the cost price. It makes up UAH 348.1 million. According to the Ministry of Energy and Coal Industry, the mechanism for covering this debt has been found.