Prices for all energy resources must be determined using market model. However, Ukraine has currently got neither a retail natural gas market, nor a coal market. Therefore, in order to determine a price close to the market one, we should use European exchange prices as guidance.
In the nearest 2–3 years, it will be hard for Ukraine to stop importing coal, so we need to invest some serious money into its extraction. For this, we need to reform the coal industry. Privatise uneconomic mines. And, generally, we need to establish a coal exchange and an investment programme to increase production. The state must create appropriate pricing and investment conditions, and, most likely, conditions for privatisation of state mines, in order to increase our own coal production.
