Purpose. To explore problems and prospects of Ukraine's coal industry functioning in crisis with the use of instruments of state support. Methodology. There were used methods of analysis (analysis of policy documents and state financing), synthesis (systematic study of the influence of legal regulation and state funding on state operation of coal mines), monographs (the review of scientific views on problems of development of coal industry), research (identifying areas of use and the efficiency of budget expenditures) and the experiment (corrected the calculation of the amount of public funding, costs and losses of the coal industry). Findings. Government support is the main form of supporting the operation of the coal industry. Analysis of policy documents and resolutions of the Cabinet of Ministers of Ukraine showed their declarative nature and lack of a systematic approach to reforming the coal industry. In terms of anti-terrorist operations, the loss of coal mining and the growth of accounts payable, finding an effective owner is a possible solution to this problem. Originality. System study of State support of development of coal industry in terms of the directions of use of budget funds and the elements was conducted. Pricing and the effect on profitability of coal enterprises were investigated. The adjustment of the volume of public funding due to changes in exchange rate of the hryvnia to the American dollar was carried out. Practical value. The research results can be used to improve the mechanism of the State support of enterprises of coal industry.

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