1. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium TACIS Project: “Coal Sector Policy Support Programme” Contract – 2008/141-542 September 2008 – June 2011 Beneficiary: Ministry of Energy and Coal Industry of Ukraine

2. 2 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Project Coverage

3. 3 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Project objectives  Support Ukraine’s stakeholders to advance substantially the development and restructuring of the coal-mining industry in a socially-responsible and cost-effective manner. A socially responsible approach comprises, among other aspects, the careful handling of environmental issues and the gradual elimination of ecological damage caused by mining activities and the closure of unprofitable mines.  Support the Ministry of Coal Industry and other stakeholders to improve safety standards substantially by developing a pilot scheme functioning as a model for further development of occupational safety standards and providing a grant scheme to finance innovative proposals in the field of mine safety.

4. 4 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Project Components  Component А – Institutional Strengthening in the Ukrainian Coal Mining Industry  Component В – Master Plan for the Development of the Ukrainian Coal Industry  Component С – Social Policy: Designing a Social Development Fund  Component D – Improving Occupational Safety in the Coal Mining Industry  Component Е – Catalogue of Contaminated Sites

5. 5 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Interrelations between Components B – Master Plan for Ukrainian Coal Sector Evaluation of mines Classification of mines Proposals for restructuring E – Environment C – Social Policy A – Institutional Strengthening Governmental Policy D – Occupational Safety

6. 6 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Master Plan for the Development of the Ukrainian Coal Industry  Mine Privatisation Programme  Mine Closure Programme  Occupational Health and Safety Programme  Environmental Mitigation Programme  Social Mitigation Programme

7. 7 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Master Plan for the Development of the Ukrainian Coal Industry  Part A – Policy Document  Part B – Background Document

8. 8 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Master Plan – Policy Document The Policy Document  summarises the current status and development potential of the Ukrainian coal industry  defines actions that are necessary to restructure the industry in order to improve profitability, reduce state dependency and mitigate current and future environmental and social impacts  defines clear concrete proposals for the implementation of the restructuring process  is complemented by an associated Road Map which set out actions to be implemented, respective responsibilities, resource requirements and indicative timescales  is intended to provide the strategic basis for defining all actions necessary to achieve coal sector restructuring objectives

9. 9 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Policy Document – Table of Contents 1.Introduction 2.Context and Sector Summary 3.Key Issues for Coal Sector Restructuring 4.Recommendations 5.Policy Objectives for Coal Reform in Ukraine 6.Transformation Programme 7.Implementation of Strategic Action Areas 8.Road Map

10. 10 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Master Plan – Background Document The Background Document  is a comprehensive document that provides all information necessary to support the implementation of actions defined in the Policy Document  is developed on a logical basis from comprehensive analysis of the coal sector in relation to future demand for coal and potential market development  Established technical procedures are used to define a range of potential market development scenarios to support analysis of the current and future viability of existing Ukrainian coal mines

11. 11 “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Background Document – Table of Contents  Masterplan Introduction and Structure 1.Executive Summary 2.Ukrainian Coal Sector in the Context of the World Market 3.Methodology for Evaluation of Coal Mines 4.Potential of the Ukrainian Coal Mining Industry 5.The Basis for Coal Sector Reform 6.Privatisation and Free Market Conditions 7.Mine Closure Planning 8.Social Mitigation Measures in Coal Mining Restructuring Processes 9.Guidelines for Improving Occupational Safety Standards 10.Environmental Risk Assessment 11.Coal Sector Transformation Programme 12.Consolidated Recommendations