ABSTRACT

When the former USSR adopted a free-market economy, the system of wholesale prices was revised and coal wholesale prices were increased by 1.6 times on average. New higher prices and increased coal production costs reflect the relationships between coal, gas and oil consumption patterns. In 1991 the price ratio for these fuels was 1 : 1.24 : 1.76. However, even with increased coal prices, the sector still remains unprofitable and still needs state subsidies. All of these negative factors have affected the output of coal and the methods of processing coal.