Ukraine's proven coal deposits ranked seventh in the world accounting for 3.8% of the world's total proven reserves. Ukraine's Major Coal Deposits and Reserves: Donbass Basin - 14 bn tones; Lviv-Volyn Basin - 970 m tones.
Despite Ukraine's substantial coal reserves, its ability to extract the commodity is restricted by significant equipment depreciation and deep coal beds.
Lack of investment in maintenance and development of mines led to poor safety practices resulting in regular accidents at Ukrainian mines, including methane explosions and cave-ins.
Ukraine mainly exports steam coal (around 70% of all coal exports) and imports coking coal (almost 90% of all coal imports).
Ukraine is exposed to a possible price increase due to potential Russian protective duties on coal exports because of an internal deficit.
The lack of flexibility to shift sources of supply because of the limited railway and sea shipment capacities further emphasizes the need for local coal supply.
Securing a reliable coal supply is essential to Ukrainian steel producers.
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