Europe bans itself from Russian coal

Europe bans itself from Russian coal

Embargo of the European Union on Russian coal import has become effective today, on August 10.

The embargo was part of the fifth sanctions package agreed by the EU in April. EU countries had agreed on a transitional period of 120 days to give the industry time to adapt to the import ban.

The European Commission said in April the coal embargo could cost Russia some 8 billion euros annually.

Russia exported 223 million tonnes of coal in 2021, of which 50.4 million tons to Europe.

In line with the negative outlook, Russia's coal production may decline by 17% compared to 2021,  while its exports may drop by 30% to 156 million tons.

In February it was reported that Russia and China are developing an intergovernmental agreement on the supply of coal in the amount of 100 mln tonnes in the next 4-5 years. Moreover, a memorandum was signed last year to increase supplies to India from 8 million to 40 million tons.