(Montel) Russian railed coal exports to Ukraine dropped to zero last month with importers facing fresh hurdles in obtaining supply, as new government red tape exacerbates existing unofficial restrictions on shipments, sources from the region told Montel.
While Ukraine ordinarily rails in around 1.5m tonnes/month from Russia, new export rules introduced last month saw deliveries grind to a complete halt, said a source with a large Ukrainian energy firm.
“In June, no coal was approved [for export], but from July the situation changed and 700,000t was permitted,” he said, noting however the approved volumes were largely for small consumers, and not large power firms.
Under the newly introduced rules, a Ukrainian importer must apply directly to the Russian energy ministry for permission to import.
“You give details of the exact tonnage and shipment dates and wait for approval, or not,” he said, noting the application is made in the month prior to shipment.
Russia does not give any reasons for turning down the requests, and a refusal can mean the importer will need to move quickly to secure alternative supplies, he said.
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Donetsk and Luhansk regions – collectively known as “Donbass” – and high-volatility coal from the rest of the country.
As the Donbass region came under control of pro-Russian separatists – with the establishment of the Donetsk People's Republic in May 2014 – supply to the rest of Ukraine declined.
“Since 2017, there has been nothing from Lugansk and Donetsk, so Ukraine began importing from Russia,” the source said, noting however Donbass coal is still being “unofficially” mined.
An estimated 150,000t/month of Donetsk and Luhansk coal is taken back into Russia, and exported from the country’s own Black Sea ports, as “Russian” coal, he said.
“European buyers don’t care where their coal comes from, as long as it’s cheap.”
