The issues of the role of coal industry in social and economic development of countries and regions and current tendencies in the branch development are outlined. The productive as well as financial and economic condition of coal enterprises of the Western Region of Ukraine is characterized. According to the dispersion analysis the groups of mines in the region with low, below average, average and high indicators of investment efficiency are detached and the conclusion over the generally low economic efficiency of coal producing enterprises’ activity of Lviv-Volyn basin and their actual lack of competitive ability is made. Such situation poses a threat of termination of their activity and appearance of new socially and economically depressed territories. Special attention is paid to the necessity of coal industry restructuring in Ukraine and its Western region. The analysis of the ways of coal industry restructuring in the European countries is conducted and European experience of the branch restructuring and possibilities of its exploitation in Ukraine are evaluated. The uncultivated coal deposits of the region perspective for mines construction are indicated. On this basis the directions and mechanisms of coal industry restructuring in the Western region of Ukraine are proposed. In particular: incorporation of all coal producers of the region into one public company PJSC “Zahidvuhillya» along with termination of unprofitable mines, mines with especially difficult conditions of mining and mines with exhausted reserves of raw coal; forming of vertically integrated fuel and energy company in the form of state enterprise «Zahidenerhovuhillya»; construction of new mines in the region in order to preserve coal mining and to create workplaces for the miners; introduction of special investment activity regimen in the regions where the coal mining was terminated; forming of special state policy of disengaged coal enterprises employees social maintenance. 

coal industry, restructuring, world experience, Western region of Ukraine