Sanction Answer: Russia sharply reduced coal supplies to Ukraine - WritenAreGiven

Sanction Answer: Russia sharply reduced coal supplies to Ukraine

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Sanction Answer: Russia sharply reduced coal supplies to Ukraine.The answer to the sanctions: Russia has reduced the supply of coal to Ukraine


Sanction Answer: Russia sharply reduced coal supplies to Ukraine

  • The supply of Russian coal to Ukraine in June 2019 fell immediately by 85%. This is due to the fact that Russian companies are required to receive permits from the Russian government for the export of coal every month. Meanwhile, Ukraine cannot do without coal from Russia. He has now begun to be brought to Kyiv through Belarus, experts say.


  • Supplies of Russian coal to Ukraine in June fell by 85%. This follows from the data of the Central Dispatching Office of the Fuel and Energy Complex (CDU TEK), reported by Kommersant.

  • Supplies of Russian coal to Ukraine in June fell by 85%. This follows from the data of the Central Dispatching Office of the Fuel and Energy Complex (CDU TEK), reported by Kommersant.

  • In general, over the six months, deliveries decreased by 11.1% (556 thousand tons) - to 4.9 million tons, mainly due to the June dynamics.

  • In the first half of 2019, the largest coal suppliers to Ukraine were the Sadkinskoe mine department (600 thousand tons), part of Yuzhugol, the Obukhovskoe mine office of the Ukrainian energy holding DTEK (684 thousand tons), Kuzbassrazrezugol (595 thousand tons) ), TALK (555 thousand tons), Resource (491 thousand tons), Raspadskaya Coal Company (448 thousand tons), cites data from Kommersant.

  • At the same time, the reduction in the supply of Russian coal to Ukraine was due to the need to obtain government permission to export coal from June 1 .

  • Recall that such a measure was a response to the next expansion of Kyiv’s sanctions against Moscow on April 2019. Then Dmitry Medvedev at a government meeting said that Russia needed “to protect its interests.” And included coal in the category of prohibited export goods.

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As a result, the majority of the largest market players either stopped deliveries or reduced their volume.


Meanwhile, according to experts, the reduction in exports of Russian coal does not mean that its supplies to Kyiv have really declined so much.

This follows from the same data CDU TEK.

  • So, partially deliveries have been redirected bypass through Belarus. That is, Ukraine continues to receive Russian coal, simply through bypass channels.


  • In particular, in the first half of 2019, exports of Russian coal to Belarus increased by 4.5 times, to 951.3 thousand tons. Most of all increases the supply of Kuzbassrazrezugol - 35 times, up to 290 thousand tons, follows from the data of CDU TEK.


  • It is unlikely that Kyiv will be able to abandon Russian coal in the near future, experts say.


  • “If we take all coal imports in Ukraine for 100%, then more than 70% of them is Russia. In the near future, changing this ratio is impossible, ”said Dmitry Marunich, co-chairman of the Foundation for Energy Strategies , in an interview with website correspondent.


  • Without Russia, Ukraine “will simply not be able to fill the shortage of coal, which was formed after the loss of the coal enterprises of Donbas,” the expert says.


  • It makes up about 25% of the entire need of the state as a whole. This is about 7 million tons per year, specified Dmitry Marunich.


  • Donbas has a “lion’s share” of resources - coking coal, as well as the coal of energy grades, the expert explained.

“After losing control over the two regions, Ukraine lost half of its coal output”,

- says Marunich.

Recall that in 2017, Ukraine imposed an economic blockade of Donbas, including by ceasing to buy coal there, and in response, the authorities of the DPR and LNR introduced external management at enterprises owned by Ukrainian residents. At the same time, experts have repeatedly suggested that coal from the DPR and the LPR continues to flow to Ukraine. This is only done in detours.

Anyway, in general, at the moment, the inability to transport coal from the Donbas leads to an increase in costs for Ukraine, since this channel has to be replaced with more expensive supply options.

"Ukraine in January - May 2019 increased foreign currency expenditures on imports of coal and anthracite compared to the same period in 2018 by 1.3% - to $ 1.27 billion," reports UNIAN with reference to the data of the State Fiscal Service of the country.

It is noteworthy that Kyiv has already thought about lifting the transport blockade of Donbas. The previously presented strategy of Ukrzaliznytsia until 2023 provided for such a scenario. If such a strategy is adopted, in 2021 the volume of coal transported to Donbas will be 40% of the amount of 2016, iron ore - 30%, ferrous metals —15%.

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