A joint Ukrainian-German company was set in Barvinkove district, Kharkiv region (eastern Ukraine) to develop Novodmytrivske deposit of brown coal.

Vasyl Bezyazychny, head of the regional state administration's fuel and energy complex department, told reporters that the relevant memorandum was signed between the Kharkiv Regional Administration, the National Academy of Sciences of Ukraine and the German company Schmid, which in a letter of guarantee stated that it was prepared to fund the project, UKRINFORM reports.

This is a tranche of 245 million euros for beginning the development of the field whose reserves of brown coal make 390 million tons.

"Annual production of brown coal could provide an opportunity to make some 7 million tons of gasoline or diesel fuel. In general, developing the field, we can theoretically replace about five billion cubic meters of gas. This is a good foundation for energy security of the state," Vasyl Bezyazychny said.

In general, there are six proven coal deposits Kharkiv region.

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