CHINA’S RUSSIAN COAL IMPORT SURGE TO RECORD LEVELS AMID EU BAN

Sat 20 August 2022:

China’s coal imports from Russia increased 14% last month to 7.42 million tonnes.

Due to Russia’s invasion of Ukraine in February, the European Union had banned the importing of Russian coal. The EU announced a coal embargo against Russia in April, and it went into effect on August 10. Germany and Poland were the two major consumers of Russian thermal coal, which accounted for 70% of the EU’s imports.

According to a survey by the Brussels-based think tank Bruegel, 20 to 30% of the EU’s coal imports are made up of Russian metallurgical coal.

The Bruegel report asserted that “replacing Russian coal imports will require lightspeed deployment of new supply chains”. However, the report added that “higher coal demand, lower coal supply and complex logistics” may lead to temporary disruptions. “Russian gas imports would be difficult and costly but feasible,” it added.

The report said Europe may face “significant coordination” and “logistical problems” while stating that “Europe and the US should forge a trans-Atlantic energy pact”.

Last year, the EU imported 45 percent of its coal from Russia, at a cost of $4.1 billion. The Netherlands, Austria, and Germany have reportedly expanded their use of coal-fired power plants, despite the EU’s goal of cutting natural gas use by 15% due to rising prices.

According to data from the General Administration of Customs, China’s coal imports from Russia were at their highest since 2017. In July of last year, China purchased 6.49 million tonnes of coal from Russia. According to reports, Russia offered China lower rates as Putin’s regime seeks new coal markets in the aftermath of EU sanctions.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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