Associated Press (AP) said the document called for drastic government reform including coal price hikes that were above production costs to end off-market trading and allow investments. This would allow the US$320 million absorbed by subsidies to be redirected.
Ukrainian coal prices are set at about 40% lower than imported coal to help sustain struggling industrial companies that rely on cheap coal for energy, AP reported.
The World Bank also called for the government to place more regulatory control over state-owned mines and hold managers accountable for financial performance and safety.
The Ukraine has a dismal safety record, with more than 100 miners killed this year alone.
If the government agrees to the reforms the World Bank will restart lending to revive the ailing coal sector.
