Russia supplies 80% of Ukraine's coal imports

Russia supplies 80% of Ukraine's coal imports
Russia accounts for 80% of Ukraine's coal imports / wikicommons
By bne IntelliNews July 26, 2017

Russia remains the biggest supplier of coal to Ukraine, despite the war between the two countries, accounting for about 80% of its neighbour’s imports, the Ukrainian Energy and Coal Industry Ministry said on July 25.

Kyiv has already weaned itself off Russian gas, having just gone through 600 days without importing any Russia gas, but is having a harder time cutting itself off from Russian coal.

Most of the coal Ukraine still widely uses to fire thermal power stations is mined in the disputed Donbas region and so lost to the rest of the country, especially since the government imposed an economic blockade on the region earlier this year.

Kyiv is hunting for alternative sources of supply, but the cheapest and easiest to get are in Russia. Between January and June, 1.4mn tonnes of coal were imported to Ukraine of which Russia accounted for 1.09mn, or about 80% of the total deliveries, the ministry said, reports TASS.

There is coal in the eastern part of the country, but it is unsuitable for burning in power stations. All of the important anthracite coal, which is widely used in power stations, is in the disputed regions.

Ukraine will reduce its consumption of anthracite coal by 3.5mn tonnes in 2017 amid a coking coal supply crisis caused by a blockade of rail links from the Donbas region.

Ukrainian Energy and Coal Industry Minister Ihor Nasalyk said at a meeting with market experts on May 29 that the national energy sector will consume about 7mn tonnes of anthracite coal in 2017 following 10.5mn tonnes in 2016. The difference should be covered with gas coal and imports, Nasalyk added.

Kyiv has been hunting for affordable alternative sources of coal: 145,100 tonnes of coal were supplied from the Republic of South Africa and 118,900 tonnes were delivered from Poland in the first half of this year, the ministry said.

But Russia remains the dominate supplier, costing Ukraine $631.1mn in the first half of 2017, the internal revenue service of Ukraine reported earlier.

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